MENA healthcare providers to spend $2.73bn on IT this year

Around $1bn of that will go on telecoms services, according to Gartner forecast

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MENA healthcare providers to spend $2.73bn on IT this year Software spending will increase by 4.9% over last year to reach $394m
By  Tom Paye Published  October 7, 2015

Healthcare providers in the MENA region are on pace to spend $2.73bn on IT products and services in 2015, according to the latest forecast from Gartner.

This forecast includes spending by healthcare providers - including hospitals and physician practices - on internal services, software, IT services, data centres, devices and telecom services, Gartner said.

Telecom services, including fixed and mobile services, will be the largest overall spending category this year for healthcare providers. According to Gartner, this vertical will spend $1bn on telecom services in 2015. Meanwhile, IT services spend will reach $361m.

Software spending will increase by 4.9% over last year to reach $394m, Gartner predicted.

In terms of the largest sub-segments, MENA healthcare providers are estimated to spend $93m on consulting in 2015, and $96m on implementation in 2015, Gartner said.

Internal services will grow 5% in 2015 to be a $497 million market in 2015. Internal services refers to salaries and benefits paid to the information services staff of an organisation. The information services staff includes all company employees that plan, develop, implement and maintain information systems, Gartner explained.

"The private sector in the Middle East and North Africa is ramping investments in building hospitals, clinics, and by forming partnership with international centres of excellence from the US and Europe. Chronic disease management is a major priority in the area," said Anurag Gupta, research vice president at Gartner.

"This demand of healthcare within the local population, and growth in building local credentials to attract medical tourists, is deriving corresponding investments in ICT."

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