Saudi Arabia is poised to outpace other Middle Eastern and African countries in IT services spending. The forecast indicates a remarkable compound annual growth rate (CAGR) of 9.0 percent between 2022 and 2027, propelling the Saudi IT services market to an anticipated $6.4 billion in 2027.
Amidst global challenges posed by the pandemic and economic slowdown, Saudi Arabia’s economy remains resilient, undergoing a substantial transformation. Aligned with Vision 2030, the kingdom has heavily invested in mega projects and digitalization initiatives. This strategic push has generated immense demand for emerging technologies, fueling widespread digital transformation initiatives across public and private sectors, thereby accelerating the uptake of IT services.
Suraj Godse, a senior research analyst at IDC, emphasizes the pivotal role of IT service providers in this ongoing transformation. “The kingdom’s managed services market is set to grow at a rapid CAGR of 13.3 percent through 2027. Service providers must harness new technologies to offer cost-effective, efficient services, positioning themselves as value-based service partners.”
Government, finance, and media/communications as the top three industries driving IT services expenditure, poised to sustain growth in the forthcoming years, according to the latest report by the International Data Corporation (IDC) on the Worldwide Semiannual Services Tracker.
Manish Ranjan, a senior research manager at IDC, underscores the increasing significance of AI, advanced analytics, enhanced security, and cloud solutions in organizational strategies. “As businesses embrace these technologies, opportunities will rise for global and local systems integrators to facilitate effective implementations. The strategic adoption of multiple cloud services alongside on-premises setups will heighten complexities, thereby escalating the demand for cloud professional services.”
The report outlines a landscape where IT services providers have a significant role in Saudi Arabia’s journey towards digital transformation. Their ability to adeptly navigate emerging technologies and cater to the evolving needs of businesses will be crucial in sustaining the kingdom’s growth trajectory in the IT sector.
