Saudi Arabia’s managed services market to hit $963Mn by 2027
RIYADH, SAUDI ARABIA — The Managed Services market in Saudi Arabia is projected to expand by US$963.48 million, progressing at a compound annual growth rate (CAGR) of 6.93% from 2022 to 2027.
Managed services refer to the practice of outsourcing specific business functions to a third-party service provider, known as managed service providers (MSPs).
According to a market forecast by Technavio, this growth trajectory is anchored in the increasing demand for outsourcing non-core operations across sectors such as banking, financial services, insurance (BFSI), and retail.
The adoption of cloud-based services is also a notable trend, driven by the need for digital transformation and government investment in technology infrastructure. Cloud solutions offer scalability, flexibility, and cost savings, making them an attractive option for businesses looking to stay ahead in a rapidly evolving technological landscape.
The Managed Document Services (MDS) segment is expected to contribute significantly to market growth, with benefits such as reduced operating costs, improved security, and enhanced document accessibility.
However, the market faces challenges, particularly concerning data and privacy issues.
Technavio’s report suggested that companies must navigate the complexities of sharing sensitive information with third-party providers, emphasizing the need for stringent security measures and careful provider selection.
Strategic alliances and product launches are among the strategies employed by the country to strengthen its market presence.
Last year, Saudi Arabia and Pakistan signed a memorandum of understanding (MoU) to expand their bilateral cooperation on digital transformation, innovation, and infrastructure.
In 2022, South Africa’s information and communications technology (ICT) industry announced that it is pursuing possible partnerships with the Kingdom of Saudi Arabia to boost ties in mining technologies, ICT, and renewable energy, among other areas.
