The Recycler
  • Biuromax Masthead web banner March 2024
  • G&G July 2024 Web Banner
  • Katun web banner December 2022 NEW

MEA market worth $30 billion

May 30, 2023

IT and business services spending in Middle East and Africa to reach $30.3 billion (€28.26 billion) in 2023, says IDC.

Dubai – According to the latest report from International Data Corporation (IDC), spending on IT and business services in the Middle East and Africa (MEA), including Israel, is expected to reach $30.3 billion (€28.26 billion) in 2023. This represents a 5.0% increase compared to the $28.9 billion ( €26.96 billion) recorded in 2022. The report also forecasts that the market will experience a compound annual growth rate (CAGR) of 5.9% from 2023 to 2027, reaching $38.1 billion (€35.53 billion) in 2027.

Suraj Godse, a senior research analyst at IDC, expressed optimism about the region’s IT services market, stating, “The MEA IT services market is forecast to continue growing through 2023 despite ongoing macroeconomic challenges and also the possibility of a global recession.” He attributed this projected growth to the stable and strong economies of oil-producing nations in the Gulf, government investments in mega projects and events, and the expansion of in-country cloud services by hyperscalers across the region. However, Godse noted that the forecasted 5.0% growth for 2023 is slower than the previous year.

IDC’s report highlights that managed services and project-oriented services will be the fastest-growing market segments in 2023, followed by support and business services. Looking ahead, IDC predicts that spending on managed services in the MEA region will grow at a CAGR of 7.6% from 2023 to 2027, while project-oriented services will see a slower CAGR of 5.7%.

Godse emphasised the challenges faced by the IT industry, including increased costs due to inflation, disruptions in the IT supply chain, and a shortage of skilled labour. He added, “The anticipation of a potential recession has also led to increased pressure on CIOs to reduce IT expenses; as a result, they are increasingly looking for more cost-effective opex-based IT solutions.”

Cloud-related services continue to drive growth in IT services revenue as organizations accelerate their cloud journeys by migrating mission-critical applications to the cloud. The recent launch of in-country cloud services by cloud hyperscalers in the MEA region has enabled organisations to expand their cloud usage through a hybrid multicloud approach, resulting in additional cost savings.

IDC’s Worldwide Semi-annual Services Tracker provides comprehensive information on the global IT and business services markets. It offers vendor revenue share and annual forecast data across 53 geographies and 14 market segments. This tracker assists both global and local players in understanding market dynamics and benchmarking their performance. With its cloud and security segmentation add-ons, the tracker provides a holistic view of the past, present, and future of the services industry.

Categories : World Focus

Tags : Business Business Services IDC IT MEA Market Spending

  • INK TANK July 2024 Web advert
  • Apex Web banner June 2024
  • TN Core July 2024 Web advert
  • GPI July 2024 Web Banner
  • Static Control June 2022 Big & Bold Ad
  • G&G Big & Bold Web banner January 2024
  • GM Technology July 2024 banner
  • Biuromax web banner June 2024
  • IR Italiana Web ad January 2021
  • Denner Feb 2024 Web Ad
  • Mito Web banner June 2024
  • ITP Web ad January 2021
  • HYB Web banner Jan 2024
  • Zhono Web ad March 2024
  • PCL July 2024 Web Advert
  • CET Web ad December 2023
  • Zhono Web ad March 2024
  • HYB Web banner Jan 2024
  • Mito Web banner June 2024
  • CET Web ad December 2023
  • ITP Web ad January 2021
  • Denner Feb 2024 Web Ad
  • PCL July 2024 Web Advert
  • CET Web ad December 2023
  • HYB Web banner Jan 2024
  • ITP Web ad January 2021
  • Denner Feb 2024 Web Ad
  • Zhono Web ad March 2024
  • Mito Web banner June 2024
  • PCL July 2024 Web Advert

The Recycler, Wittas House, Two Rivers, Station Lane, Witney, OX28 4BH, United Kingdom | Tel: +44 (0) 1993 899800 | Fax : +44 (0) 1993 226899
©2006-2023 The Recycler - Terms & Conditions - Privacy Policy including cookie use

Web design Dorset | Websites by Mark

The Recycler Subscribe Web ad January 2021
The Recycler Subscribe Web ad January 2021