Technology

Saudi Arabia's Managed Services Market Soars with Significant Growth Forecast

NEW YORK, March 11, 2024 /PRNewswire/ -- Saudi Arabia's managed services industry is embarking on a growth journey expected to increase by a remarkable USD 963.48 million from 2023 to 2027. Analysts predict the market will expand at a compound annual growth rate (CAGR) of 6.93% during the forecast period.

The escalating traction for outsourcing non-essential functions in sectors such as banking, financial services, insurance (BFSI), and retail is contributing substantially to the market's expansion. Banks and financial institutions, in particular, are streamlining their operations by assigning information technology tasks like data management, software development, and customer support to third parties. This strategic move enables these entities to dedicate their focus to essential operations such as risk management, investments, and regulatory compliance. Outsourcing not only diminishes costs but significantly upgrades operational efficiency and raises customer service standards.

In addition, the retail industry is capitalizing on outsourcing for supply chain management, logistics, and inventory management to refine resource utilization and intensify competitiveness. In Saudi Arabia, managed services providers are empowering companies to hand over non-core functions while maintaining a grip over their operations. These providers extend a full spectrum of services, incorporating Infrastructure Management, Application Management, Data Analytics, and Security Management, thereby ensuring uninterrupted planning, design, implementation, and maintenance solutions. Ultimately, these factors are forecasted to propel market growth throughout the period.

Technavio has underscored this upward trajectory in its latest market research report, titled Managed Services Market in Saudi Arabia 2023-2027.

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Report Insights and Details

Researched over 157 pages with the base year considered as 2022 and historic data spanning from 2017 to 2021, Technavio's report analyzes the projected growth of the managed services market in Saudi Arabia from 2023 to 2027. The market's growth impetus is set to accelerate, indicating a significant market elevation by USD 963.48 million. Despite its fragmented structure, with a year-over-year growth of 5.78% from 2022 to 2023, the market signals strong growth momentum at a CAGR of 6.93%.

Key Industry Players and Market Dynamics

The Saudi Arabian managed services market is characterized by its fragmented nature, with the market in a phase of robust growth. Organizations are increasingly looking towards process automation, IT environment simplification, and development of economical cost structures, fostering an environment conducive to market spending during the forecast period. Vendors implement both organic and inorganic growth strategies to maintain competitiveness within the market.

Leading Companies in Managed Services

Several key players are defining the managed services landscape in Saudi Arabia:

• ACS Services Inc.: Offers managed services designed to reduce physical infrastructure and foster digital transformation pathways.
• Amazon.com Inc.: Provides managed services aiming for efficient adoption of Amazon Web Services to enhance operational efficiency.
• AO Kaspersky Lab: Delivers a diverse range of IT security services from endpoint security to hybrid cloud protection.

For a comprehensive view of the market and its key players, you can view a sample report at Technavio.

Key Market Segmentation

Technavio's report highlights the Saudi Arabia managed services market segmentation by type (MDS, MNS, MSS, MMS, and others), deployment (cloud and on-premises), and end-user (government, financial services, healthcare, oil and gas, and others).

The Managed Document Services (MDS) segment is anticipated to contribute significantly to overall market growth during the forecast period. Benefits such as lower operating costs and the transition towards document management systems and process automation are substantial drivers. Enhanced document security through secure print solutions also encourages businesses to adopt managed print services (MPS), driving growth within this segment.

To delve deeper into the market segmentation, view a sample report in minutes here.

Emerging Trends and Market Influencers

One clear trend influencing the Saudi Arabian market is the increased adoption of cloud-based managed services, driven by scalability, flexibility, digital transformation, and cost-effectiveness. The accelerating shift towards cloud solutions has been further expedited by the COVID-19 pandemic, as businesses transitioned to remote work.

Companies now recognize the necessity of cloud-based solutions for competitive viability amidst rapid technological progressions. Moreover, this trend is expected to boost market growth during the forecast period.

Market Challenges

Despite robust growth, data and privacy concerns stand as notable challenges impeding the market's trajectory. However, companies continue to pursue innovative solutions to overcome these hurdles.

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Analyst Outlook and Market Overview

Recent times have seen the Saudi Arabia Managed Services Market mature considerably. Businesses in the region are embracing digital technologies to optimize operations. Customized solutions, such as application testing, service catalog building, and consultant expertise, help firms enhance their efficiency and productivity.

Enterprises in Saudi Arabia are proactively adopting cloud-based technologies for scalability and flexibility, reassured by strategic partnerships that focus on managed services and security solutions.

The Shift to Strategic Cloud Management

Cybersecurity has become a cornerstone for business operations, with MSSs and cyber security managed services seeing increased demand. Providers like Synoptek and Aeries Technology offer solutions spanning application security services, data security & privacy, and identity & access management to repel cyber threats.

Moreover, the advancement of AI, machine learning, and IoT are redefining business approaches, enabling companies to utilize RPA-managed services to promote process automation and optimization. Tools like augmented reality and business intelligence deliver profound insights, enhancing business performance.

In summary, the Saudi Arabian market for managed services is set for unabated progression as companies prioritize digital transformation to enhance operational efficiency. The market presents a variety of services, from managed network services to endpoint management solutions, addressing the varied needs of regional enterprises.

For further insights, a sample report is available for review.

The Global Context of Managed Services

Globally, the managed services market reflects a similar growth pattern, with Saudi Arabia playing a pivotal role. As digital transformation gains momentum, the integration of services on cloud platforms fosters collaboration and augments operational efficiencies across disparate business units.

The Saudi Arabian managed services sector is pivoting on innovation, digital readiness, and the ability to adapt to an ever-changing technological landscape.

Related Reports and Market Projections

Cloud-Managed Services Market Projections

The cloud-managed services market size is poised for a substantial increase, with an expected USD 52.62 billion rise from 2021 to 2026, and a CAGR of 10.37%. The rise is majorly attributed to the growing adoption of cloud computing services.

Managed IT Infrastructure Services Market Outlook

Likewise, the managed IT infrastructure services market size is forecasted to expand by USD 64.51 billion from 2021 to 2026, with a CAGR of 10.34%, driven by the rising paradigm of cloud-based managed security services.

Comprehensive Topic Coverage

The research encompasses various critical domains, including:

1. Executive Summary
2. Market Landscape
3. Market Sizing
4. Historic Market Size
5. Five Forces Analysis
6. Market Segmentation by Type
7. Market Segmentation by Deployment
8. Market Segmentation by End-User
9. Customer Landscape
10. Geographic Landscape
11. Drivers, Challenges, and Trends
12. Company Landscape
13. Company Analysis
14. Appendix

About Technavio

As a global research leader, Technavio provides emerging market trend analysis and actionable insights, helping businesses tap into market opportunities for strategic positioning. Their extensive report library serves a diverse clientele, including Fortune 500 corporations, by covering wide-ranging technologies across various countries.

For inquiries, Technavio can be reached at:

Technavio Research Jesse Maida, Media & Marketing Executive US: +1 844 364 1100 UK: +44 203 893 3200 Email: [email protected] Website: www.technavio.com

SOURCE: Technavio

With the convergence of market expansion, technology adoption, and strategic initiatives, the managed services market in Saudi Arabia is on a trajectory of sustained growth and development. This presents a wealth of opportunities for enterprises to innovate, optimize, and secure their operations in an increasingly digital world.

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