Israel finding success in call-center market

jerusalem | Pacing the floor of his cubicle, a young man in Jerusalem speaks into his headset to an American client 6,000 miles away and convinces her not to terminate her AOL membership.

Around him, hundreds of other agents are hustling to find and keep clients at IDT Global Services, Israel's largest call center.

The Jerusalem subsidiary of IDT, one of the largest telecom providers in the United States, opened in 2002 with 20 employees. It now has close to 1,000 workers, making it the largest call center in Jerusalem, and one of the city's largest employers. The firm is planning to open other locations in Israel.

"It is one of the only places outside of the United States that you have this type of concentration of highly skilled native speakers of American English," said Yoel Keren, 34, who immigrated to Israel from Oklahoma and works in the company's AOL department. "That is the edge you cannot get anywhere else."

Investors in Jerusalem businesses and city officials are trying to find their niche in the multibillion-dollar international call center and outsourcing industry.

The city's main selling point is its highly educated expatriate and immigrant population who share a native tongue and cultural affinity with their clients.

This is what sets Jerusalem apart from the call center powerhouses of India and Ireland, according to industry executives.

"We market ourselves as a boutique call center," said Janine Kutliroff, CEO of IDT Global Services.

Another key selling point is that labor costs are roughly 40 percent to 60 percent cheaper in Israel than in North American and European cities, although the costs are higher than in India.

The Jerusalem municipality offers tax breaks for companies and rent subsidies for new employees who move to the city. The Israeli government, keen to bring down high unemployment rates, is also helping underwrite part of the hiring costs for companies establishing call centers.

Employees at IDT are drawn from all segments of society — students and those approaching retirement, religious and secular. Workers from North America or England conduct most of the business in English, but there are also departments that work entirely in German, French, Spanish and Dutch.

"People feel comfortable with the environment, working within their own language and culture," said Gary Heller, 29, who immigrated to Israel from South Africa and supervises a telemarketing team.

Employee retention, however, is a challenge. One factor is the hours — many employees must work evenings or overnight. Some new immigrants take the firm's telemarketing jobs out of necessity when they arrive in the country, and quit when they find employment more suited to their education and training.

Natan, who gave only his first name, said his customer service job with one of IDT's long-distance phone providers has been one of the best jobs he has had since emigrating from the United States more than 25 years ago.

"Management understands the workers' needs and makes it easier for us," Natan said.

Michael Barnett, director of marketing for IDT Global Services, jokingly refers to the four floors of the office tower where the business is located as "Little America."

It's almost entirely an English-speaking work environment, and there is even a barbecue on July Fourth.

The company provides some American-style perks in the office building, including an indoor pool, gym and video games. There are clear advancement tracks and benefit packages in recreating an American-style corporate structure.

There is also an intensive Hebrew-language course. "It's a soft landing for people who have made aliyah," said Judy Lowy, director of recruitment for the company.