Originally published on Technavio: Saudi Arabia Managed Services Market Analysis - Forecast and Insights 2023-2027

Published: Oct 2023
Saudi Arabia Managed Services Market Forecast 2023-2027

The estimated growth of the Saudi Arabia Managed Services market is USD 963.48 million at a compound annual growth rate (CAGR) of 6.93% between 2022 and 2027. The market's expansion is influenced by factors such as the increasing demand for outsourcing non-core operations in banking, financial services, and insurance (BFSI) and the retail sector, a rise in the adoption of Organization as a Service (OaaS) in managed services, and the growing use of managed services across various sectors.

Market Size During the Forecast Period
The market's growth is driven by the increasing demand for outsourcing non-core operations in BFSI and the retail sector, while data and privacy concerns may pose challenges. A comprehensive analysis of key drivers, trends, and challenges, considering 2022 as the base year, aids in refining marketing strategies for a competitive advantage.

Key Driver
The growing demand for outsourcing non-core operations in BFSI and the retail sector is a significant driver of market growth. Banks and financial institutions are outsourcing IT tasks, enhancing their focus on core skills such as risk management and investments. Similarly, businesses in the retail industry outsource non-core tasks to better utilize their resources and improve competitiveness.

Managed service providers in Saudi Arabia offer services like Infrastructure Management, Application Management, Data Analytics, and Security Management. They provide comprehensive solutions covering planning, designing, implementing, and maintaining, enabling businesses to outsource non-core functions while retaining control. This is expected to drive market growth and trends during the forecast period.

Significant Trends
The increased adoption of cloud-based services in Saudi Arabia is a major market trend. Cloud-based solutions offer scalability, flexibility, and cost-effectiveness, contributing to their popularity. The growing demand for digital transformation across various industries, coupled with government investments in infrastructure and technology, further fuels the adoption of cloud-based services. The cost-effectiveness of cloud solutions, sparing businesses from significant upfront capital costs and ongoing maintenance expenses, is a key driver of their increased adoption.

Major Challenge
Data and privacy issues present major challenges impeding market growth. Managed services involve outsourcing, granting third-party service providers access to private and sensitive data. Inadequate regulation or vetting of service providers may lead to data breaches or leaks, causing reputational harm, financial losses, or legal actions. Businesses in Saudi Arabia must carefully consider the security and privacy policies of potential managed service providers to mitigate these risks.

Customer Landscape
The market growth analysis includes the adoption lifecycle, covering innovators to laggards, focusing on adoption rates in different regions based on penetration. The report also incorporates key purchase criteria and drivers of price sensitivity to assist companies in evaluating and developing growth strategies.

Who are the Major Companies in Saudi Arabia
Companies are implementing various strategies, including alliances, partnerships, mergers, acquisitions, geographical expansion, and product/service launches, to enhance their market presence.

- Diyar United Co.: Offers innovative information and communication technology solutions and services in Kuwait.

The market research and growth report includes detailed analyses of the competitive landscape, featuring information about 15 market companies, including.

Qualitative and quantitative analyses categorize companies based on their focus and strength in the market, aiding in understanding the wider business environment and the strengths and weaknesses of key players.

Market Segmentation
The MDS segment is expected to witness significant growth during the forecast period. MDS, essential in Saudi Arabia, refers to the management of business document infrastructure and procedures to enhance productivity, lower operating expenses, and boost security. Outsourcing MDS to professionals allows organizations to focus on core competencies, while managed print services (MPS) reduce operating costs and enhance document workflow efficiency. MDS also improves document security, crucial in fields like healthcare, law, and finance. Cloud-based document storage and sharing solutions further enhance document sharing and access.

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The Saudi Arabia Managed Services Market offers a dynamic landscape, providing diverse solutions to address business needs. Providers focus on downtime redundancy, operational efficiency, and value-added services such as application testing and service catalog building. Expert consultancy, monitoring tools, and isolated teams enhance security. Managed IT services, leveraging cloud platforms, encompass strategic partnerships and professional services. Security remains a priority, covering cyber threats and compliance certifications. Innovations like IoT, blockchain, and AI bolster productivity, while managed network services address network complexities. Amidst cyber threats, managed security services ensure robust business management.
The market growth and forecasting report covers revenue growth and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.

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