Saudi Arabia’s managed services to surge by $963Mn by 2027
NEW YORK, UNITED STATES — Saudi Arabia’s managed services market is forecast to expand at a compound annual growth rate (CAGR) of 6.93% between 2023 and 2027, reaching around $963.48 million by 2027.
According to market research firm Technavio, key factors driving this growth include increased outsourcing of IT functions by companies in sectors like banking, finance, insurance, and retail to improve core operations such as risk management and compliance. This, in turn, is boosting efficiency and customer service.
Retailers are also increasingly turning to external providers for logistics and inventory management, enhancing their competitive edge.
The Saudi market currently has a fragmented vendor landscape with companies competing through strategic growth plans and market segmentation by service type, deployment methods, and user industries.
The Managed Document Services (MDS) sector is expected to spearhead market growth by aiding businesses to cut costs via better document management and streamlining of equipment.
Cloud-based managed services are gaining popularity owing to their flexibility and cost-effectiveness, a trend accelerated by the pandemic’s push towards remote work. This is predicted to contribute to the market’s growth trajectory significantly.
However, data privacy remains a concern, with potential security breaches posing significant risks for companies outsourcing their IT operations. To mitigate this, the adoption of security measures like two-factor authentication and encryption by managed service providers is recommended.
