Israeli companies want to collaborate with Indian firms on R&D to create IT products and services for the global market, according to Israel's deputy prime minister Ehud Olmert.
"There is no competition between India and Israel in IT," said Olmert, who is also the minister for industry, trade, labour and communications, during a visit yesterday to Bangalore. "India is so much bigger and has so many talented engineers who are much less expensive than our engineers in Israel. We have to use our relative advantages, and do R&D for the world market."
Olmert added that companies from both countries would meet to discuss collaboration.
"We don't have a shortage of engineers in Israel relative to our size," he said. "Their quality is very high, but their cost is also high. We need to find a balance between using the innovation of Israeli engineers and the proven skills in software development and implementation of Indian engineers."
Software suppliers around the world operate development and services subsidiaries in India, or outsource to Indian companies. But Olmert said that Israel's interest in India's software and services capabilities went beyond outsourcing and included collaborating on R&D and product development.
The visit of Olmert's Israeli delegation to India follows a visit last week by Russian president Vladimir Putin and a trade delegation of Russian IT companies. Besides inviting Indian software and services companies to set up operations in Russia, the Russians also met with executives of Indian outsourcing companies to explore collaboration between Indian and Russian IT companies.
John Ribeiro writes for IDG News Service