Publication date: 29 Nov 2023
Saudi Arabia Leads IT Services Growth in the Middle East and Africa
Riyadh – Spending on IT services in Saudi Arabia is set to outpace all other countries in the Middle East and Africa region, according to the latest Worldwide Semiannual Services Tracker from International Data Corporation (IDC). IDC forecasts that the Saudi IT services market will grow at a compound annual growth rate (CAGR) of 9.0% over the 2022–2027 period, reaching $6.4 billion in 2027.
Saudi Arabia has been going through a massive economic transformation. Despite the challenges posed by the global pandemic and the recent global economic slowdown, the kingdom's economy continues to grow, showing great resiliency.
In line with its Vision 2030 strategy, Saudi Arabia has been investing heavily in mega projects and digitalization initaitives. This has spurred huge demand for emerging technologies and driven the widespread implementation of digital transformation initiatives across both the public and private sectors, accelerating the uptake of IT services in the country.
"IT services providers are playing a key role in this ongoing transformation and have an excellent opportunity to demonstrate their skills and capabilities around emerging technologies," says Suraj Godse, a senior research analyst at IDC. "The kingdom's managed services market is forecast to grow at a rapid CAGR of 13.3% through 2027 and services providers need to leverage new technologies to provide cost-effective and efficient services to customers in order to position themselves value-based services partners."
IDC's research shows that government, finance, and media and communications remain the top three industries in terms of IT services spend and will continue to drive growth in this area over the coming years.
"As organizations continue to embrace AI, advanced analytics, enhanced security, and cloud solutions, opportunities will open up for global and local systems integrators to help businesses drive effective implementations," says Manish Ranjan, a senior research manager at IDC. "Businesses are making strategic decisions to utilize cloud services from different cloud providers and run their workloads in a mix of on-premises and various cloud environments, leading to greater complexity. Managing multicloud and hybrid cloud is a challenge, and this will drive increased demand for cloud professional services."
IDC's Worldwide Semiannual Services Tracker provides detailed, timely, and accurate information on the global IT and business services markets. It provides vendor revenue share and annual forecast data on a semiannual basis across 53 geographies and 14 market segments. It helps global and local players to assess services market dynamics and benchmark themselves. Essentially, the services tracker provides a holistic view of the past, present, and future of the services world. It also includes add-ons for cloud and security segmentation of the total IT services forecast.
About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.
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International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
IDC in the Middle East, Türkiye, and Africa
For the Middle East, Türkiye, and Africa region, IDC retains a coordinated network of offices in Riyadh, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai. Our coverage couples local insights with international perspectives to provide a comprehensive understanding of markets in these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, and accuracy. IDC MEA currently fields over 130 analysts, consultants, and conference associates across the region. To learn more about IDC MEA, please visit www.idc.com/mea. You can follow IDC MEA on Twitter at @IDCMEA.