Saudi managed services market set to breach half-bn mark in 2015: IDC

Revenue from outsourced functions, including cloud, grows, due in part to e-gov projects

Tags: International Data CorporationSaudi Arabia
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Saudi managed services market set to breach half-bn mark in 2015: IDC
By  Stephen McBride Published  May 2, 2015

The outsourcing, managed services, and data centre services market in Saudi Arabia is expected to total $570.6m in 2015, according to a recent study published by International Data Corporation (IDC).

The market is set to grow 16.2%, year on year, primarily driven by increased spending on network and desktop outsourcing, and hosting infrastructure services. The cloud market, in particular, will perform strongly, spurred by the growing maturity of the Saudi ICT market and the increase in the number of companies using cloud services.

IDC expects the Saudi cloud market to total $77.5m in 2015, up 53.8% on 2014. Spending on network and desktop outsourcing services and hosting infrastructure services will expand 22.1% and 18.5%, respectively, over the same period, while the hosted application management services market will grow 16.5%. The application management outsourcing market will record comparatively slower growth of 8.7% in 2015, due mainly to the hardware-driven nature of the IT market in Saudi Arabia.

"Organisations in Saudi Arabia are gradually warming to the idea of commissioning third-party providers for managed and outsourcing services," said Uzair Mujtaba, senior analyst for software and IT services at IDC Saudi Arabia. "While the inherent preference of Saudi organisations to retain complete control over IT and keep their infrastructure in-house has inhibited the widespread adoption of these services across the kingdom, CIOs are increasingly becoming aware of the benefits that these technologies offer and are showing a growing inclination toward adopting managed and outsourcing services."

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