System Integration in Middle East saw $10bn investment over 2016
STME’s Al Bayaa delves into the various opportunities for SI providers.
According to the research data produced by MarketsandMarkets, the systems integrators (SI) services market in the MEA region reached $10.34 billion at the end of 2016. This followed a five-year growth spike, during which the market increased by a compound annual growth rate (CAGR) of 8.87%.
MarketsandMarkets' findings also showed that the market was driven by technologies, such as automation, cloud, virtualisation, as well as integrated approaches to business. These technologies were projected to draw $387.85bn investments annually within the global SI market by 2021.
Commenting on these revelations, Ayman Al Bayaa, CEO, STME, explained: "Organisations turn to SI in pursuit of value creation through the collective pooling of resources, which accentuates spending effectiveness.
"Between 2011 and 2016 when the industry witnessed phenomenal growth, communication, media and government sectors were the biggest contributors and in future, we expect this to shift in focus towards the healthcare, utilities, and services industries.
"Opportunity exists across the market for SI providers to tap this new business - from smaller organisations and unfamiliar industries alike - and new clients challenge providers to create new product and service developments. These opportunities should not be missed," he added.
Al Bayaa went on to highlight the challenge of the market, which include reduced budget cuts as a result of the Brent Crude currently holding at $54 per barrel. He also noted the issues of security, backup and networking, as top challenges for SI providers.
"A drop in overall expenditure in the MENA region due to the fluctuation of oil prices could be the difference between survival and growth, so correct and appropriate strategies are needed to thrive in economic downturns," said Al Bayaa.