EAS market tipped to return to growth in 2010
Companies are recovering from the economic crisis, overhauling IT systems
The enterprise application software (EAS) market in the Middle East and North Africa (MENA) region is expected to return to double-digit growth rates from 2010 following a market slowdown in 2009 due the global economic crisis.
According to a report by market research company IDC, the region is predicted to grow at an average annual rate of 12.8% by 2014.
"Widespread regional liquidity difficulties and the delay or cancellation of EAS projects by organisations that were forced to revisit their spending plans, proved particularly troublesome, although the market will soon rebound to former heights," said Dhiraj Daryani, senior analyst for the software market at IDC Middle East, Africa, and Turkey.
According to IDC, with the steady global market recovery, governments and businesses in the region are proceeding with IT modernisation and application transformation in high-growth vertical segments such as education and healthcare.
IDC predicts that these areas will remain the fastest growth areas for EAS solutions and other segments, which saw a drop in spending in such as business services and telecommunications, will forge ahead with EAS investments.
The analyst company has predicted that although process and discrete manufacturing will continue to be critical drivers of EAS spending, their total market share will gradually shrink during 2014, while the finance vertical will rebound strongly from 2009.
Saudi Arabia will remain the MENA region's largest and fastest growing EAS market, while Egypt is also set for strong growth as large numbers of businesses migrate to modern EAS suites.
While SAP, Oracle, and Microsoft Dynamics dominate the MENA region's EAS market, these leading vendors need to be proactive as businesses and governments begin to look at investing in innovative IT applications, according to IDC.
"Customers are no longer content with just implementing solutions from global vendors," said Daryani. "They also want to see the quantifiable value they derive from adopting such solutions. As such, vendors need to bring in world-class expertise and resources if they are to be seen as long-term players in local markets. Vendors that can both demonstrate their commitment to individual country markets and clearly convey the value of their solutions to customers stand to gain market share."