Saudi Arabia is poised to become the leader in IT services spending in the Middle East and Africa region, according to the International Data Corporation (IDC). The IDC’s Worldwide Semiannual Services Tracker forecasts a compound annual growth rate (CAGR) of 9.0% for the Saudi IT services market between 2022 and 2027, with a projected value of $6.4 billion in 2027.
The Saudi economy has shown remarkable resilience and growth despite the challenges posed by the global pandemic and economic slowdown. The country’s Vision 2030 strategy, which focuses on economic diversification and digitalization, has driven substantial investments in mega projects and digital initiatives. This has resulted in a surge in demand for emerging technologies and an accelerated adoption of IT services across both the public and private sectors.
Suraj Godse, a senior research analyst at IDC, emphasizes the crucial role of IT services providers in Saudi Arabia’s ongoing transformation. He highlights the need for providers to leverage emerging technologies to deliver cost-effective and efficient services, positioning themselves as value-based partners. The managed services market in the kingdom is expected to grow at a rapid CAGR of 13.3% through 2027.
The government, finance, and media and communications sectors are the leading industries in terms of IT services spend in Saudi Arabia, and they will continue to drive growth in the coming years. As organizations increasingly embrace AI, advanced analytics, enhanced security, and cloud solutions, there will be opportunities for global and local systems integrators to assist businesses in implementing these technologies effectively.
Manish Ranjan, a senior research manager at IDC, points out that the complexity of managing multicloud and hybrid cloud environments presents a challenge for businesses. This challenge will drive an increased demand for cloud professional services as organizations make strategic decisions to utilize cloud services from different providers.
The IDC’s Worldwide Semiannual Services Tracker provides comprehensive and accurate information on the global IT and business services markets. It offers insights into vendor revenue share and annual forecasts across various geographies and market segments. The tracker enables global and local players to assess market dynamics and benchmark themselves, providing a holistic view of the services world.
About IDC:
International Data Corporation (IDC) is a leading global provider of market intelligence, advisory services, and events for the IT, telecommunications, and consumer technology markets. With over 1,300 analysts worldwide, IDC offers expertise on technology trends, IT benchmarking, and industry opportunities in over 110 countries. IDC’s analysis and insight help IT professionals, business executives, and investors make fact-based technology decisions. Founded in 1964, IDC is a subsidiary of International Data Group (IDG), a prominent tech media, data, and marketing services company.
About IDC in the Middle East, Türkiye, and Africa:
IDC has offices in Riyadh, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai. The company combines local insights with international perspectives to provide comprehensive market intelligence in these dynamic regions. With over 130 analysts, consultants, and conference associates, IDC MEA offers unparalleled depth, consistency, scope, and accuracy in its market intelligence services.