MEA healthcare industry to spend $2.8bn on IT in 2014

IT spend in the industry to grow by 2.8% over 2013, says Gartner

Tags: Gartner Inc. (www.gartner.com/technology/home.jsp)Saudi ArabiaUnited Arab Emirates
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MEA healthcare industry to spend $2.8bn on IT in 2014 Gartner: Telecoms services will remain the industry's largest overall spending category throughout 2014
By  Tom Paye Published  March 25, 2014

Healthcare providers in the Middle East and Africa will spend $2.8 billion on IT products and services in 2014 - an increase of 2.8% over 2013, according to the latest estimates from Gartner.

The forecast includes spending by healthcare providers - such as hospitals, ambulatory services and physician practices - on internal IT, encompassing personnel, hardware, software, external IT services and telecoms.

Telecoms services will remain the largest overall spending category throughout 2014 within the healthcare sector, Gartner said, with spend expected to grow 2% to reach $1.3 billion.

Meanwhile, software will see a growth rate of 10% to reach $384 million, and internal services will grow 8.6% to $490 million. IT services will grow by 7.6% to $314 million, lead by growth in business process outsourcing and software support, the research house said.

"Growing private healthcare infrastructure and government investments is driving higher adoption of technology," said Anurag Gupta, research director at Gartner.

"Saudi Arabia, GCC's biggest economy, will continue its focus on building healthcare infrastructure along both primary care, secondary hospital segment, preventive and diagnostic care to support the affluent population. We expect a corresponding uptick in investment in healthcare technology. UAE is expected to enhance the focus on building patient databases, mobile health, and preventive healthcare."

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