Middle East to see strong IT investment for 2013

Peter Sondergaard from Gartner says that IT spending in the region is set to soar above the global IT spending average.

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Middle East to see strong IT investment for 2013 Peter Sondergaard, senior vice president and global head of research at Gartner says the Middle East region will see substantial IT investment in 2013.
By  Georgina Enzer Published  March 27, 2013

IT spending in the The Middle East region is projected to reach $192.9 billion in 2013, a 5.5% increase from 2012. This spending increase is far above the global average, according to Peter Sondergaard, senior vice president and global head of research at Gartner.

Gartner is also predicting accelerated investment in the data centre for 2013 and 2014, despite a global slowdown in investment in this area.

"In markets that are struggling financially we are seeing a slowdown in data centre investment, for example in Europe, where investment is growing far slower compared to what we are seeing here in the Middle East where the growth rates are in the 6 to 7% range," Sondergaard told Network Middle East.

Software is the one area where there is still an investment lag in the Middle East region, compared to the general market, this observation is also reflected in the Gartner 2013 CIO Survey.

"Interestingly enough, investment in ERP and application-based environments in our survey features very high in this region as a focus of CIOs. It is actually number three on the list of issues that CIOs focus on from a technology perspective," said Sondergaard.

According to Gartner, virtualisation is the second highest focus area in technology for CIOs in this region, and that is again an indicator of the investment that is happening over the next couple of years in the data centre sphere in this region.

"The main message here is that investment is in areas that are more base infrastructure focused not necessarily something that is more customer facing. ERP based systems and data centre still forms the major part of the investment here as opposed to technologies that face the customer, that is the way we think investment will come in a couple of years," said Sondergaard.

IT services are generally an area in which there has been substantial investment in this region, according to Gartner

"We expect increased sophistication in terms of more sophisticated IT services, in particular as we shift over to more cloud-based offerings from service providers. We think that, similar to the global market, these services will also stress the local service providers because it will start to put pressure on margins of business and therefore lead to some changes as we go through the next couple of years," said Sondergaard.

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