Product Code: 67000
GCC Managed Services Market is expected to register a CAGR of 9.2% during the forecast period 2021 - 2026. GCC in the Middle East has been relatively looked upon as a region which lagged IT Spending. However, the scenario seems to change, considering the Government's, large organizations and small-medium enterprises (SMEs), as well as start-ups across all industries in the region, are slowly realizing the need to digitally transform.
- In a recent study by Microsoft, two in three Gulf enterprises reported that they were planning to invest at least 5% of annual revenue in digitization of their operations. Further, up to 51% of organizations reported having prioritized cloud computing, business intelligence (41%), Internet of Things (37%), and Artificial Intelligence (29%). Therefore, the region, which is expected to register a significant growth rate in terms of IT upgrades is expected to provide greater demand for managed services.
- Further, the GCC region has also been the target for cyberattacks since. The facts presented by FireEye, a prominent cybersecurity vendor, is a clear indicator of cloud security becoming a trend in the region over the next few years. For instance, FireEye mentioned that Saudi Arabia witnessed more than 1,64,00 online attacks in a day. Considering the progress of the region in the direction of artificial intelligence and IT experience (Vision 2030) and their dependency on cloud, cloud security might flare in the region over the forecast period.
- Overall, the market for managed services in GCC countries is driven by the region's increasing cloud penetration, network upgradations and the focus on the digital economy.
Key Market Trends
Managed Hosting Services expected to grow significantly over the forecast period
- Government led infrastructure expansion, along with an increasing number of enterprises embracing the cloud for their operational applications, are driving the growth of the data center market in the GCC countries.
- Considering the GCC enterprises' limited IT budget and the lack of in-house capabilities to keep abreast with the evolving technologies, the dependency on Data Center service providers can be rated high in the region.
- Cloud service providers including Microsoft, Google, AWS have been making significant investments in the region and have expanded their footprint. According to AWS, which opened three data centers in Bahrain, the region has been the most requested by its global partners. The company believes that with the new data centers, enterprises in the region will be able to move to cloud system hosted by a specialist company, which will be a cheaper option than building their own infrastructure of servers, hardware and security networks.
UAE Expected to Record Fastest Growth
- The region houses local players such as Mindfire Technologies Inc, Injazat Group, ASPGulf, Unified Microsystems and Emitac Corporate which are driving intelligent transformation for enterprises across UAE.
- Further, cloud and other technology players such as Microsoft, Ericsson, Cisco in partnership with telecom players are looking to digitally transform businesses in the region. With increased awareness of the technologies, the region is expected to increase their spending on upgrading their IT infrastructure, thus increasing the scope for managed service providers in the reigon.
- New and extended strategic partnerships to enable managed services have been evident in the region. For instance, in May 2019, du, Emirates Integrated Telecommunications Company (EITC), strengthened its partnership with Abu Dhabi Islamic Bank (ADIB), one of the leading financial institutions in the UAE, to provide data center services. As part of the agreement, du will continue to deliver advanced network solutions with increased operational and network efficiency.
The GCC Managed Services market comprises of a significant share of home grown companies as well as international companies such as HP, IBM, Wipro among others. The region also homes small managed service providers that are a part of partner programs of large companies like Cisco. Some of the recent developments in the market are:
- February 2019 - Oman Data Park, a prominent Cloud computing company in Oman, commissioned Cyber Security Center at Knowledge Oasis Muscat. The Center seeks to provide IT services, enhance managed security services such as cybersecurity operations and a network operations team, managed by an elite team of experienced Omani experts.
- April 2019 - Saudi Arabia's Integrated Telecom Company(ITC), expanded its portfolio of security services by launching a new suite of managed security services. The company recognized the challenges faced by Saudi enterprises with respect to managing risks. The company as a part of its new offering will assist organisations in activities such as monitoring, threat detection, incident handling, and management of ongoing cybersecurity risks.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Industry Attractiveness - Porter's Five Force Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 By Manged Service Type
- 5.1.1 Managed Infrastructure
- 5.1.2 Manged Hosting
- 5.1.3 Managed Security
- 5.1.4 Managed Cloud Services
- 5.2 End-user Vertical
- 5.2.1 IT & Telecom
- 5.2.2 BFSI
- 5.2.3 Oil & Gas
- 5.2.4 Healthcare
- 5.2.5 Government
- 5.2.6 Other End- user Verticals (Retail, Education, etc.)
- 5.3 Country
- 5.3.1 Saudi Arabia
- 126.96.36.199 Market projections for Saudi Arabia Managed Services Market
- 188.8.131.52 Analysis of Current Market Scenario and Key Market Influencers
- 184.108.40.206 Analysis of Key Market Players and their Footprint
- 220.127.116.11 Market Outlook
- 5.3.2 UAE
- 18.104.22.168 Market projections for UAE Managed Services Market
- 22.214.171.124 Analysis of Current Market Scenario and Key Market Influencers
- 126.96.36.199 Analysis of Key Market Players and their Footprint
- 188.8.131.52 Market Outlook
- 5.3.3 Qatar
- 184.108.40.206 Market projections for Qatar Managed Services Market
- 220.127.116.11 Analysis of Current Market Scenario and Key Market Influencers
- 18.104.22.168 Analysis of Key Market Players and their Footprint
- 22.214.171.124 Market Outlook
- 5.3.4 Kuwait
- 126.96.36.199 Market projections for Kuwait Managed Services Market
- 188.8.131.52 Analysis of Current Market Scenario and Key Market Influencers
- 184.108.40.206 Analysis of Key Market Players and their Footprint
- 220.127.116.11 Market Outlook
- 5.3.5 Other GCC Countries (Bahrain & Oman)
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Etihad Etisalat Co. (Mobily)
- 6.1.2 Saudi Telecom Company
- 6.1.3 AGC Networks (An ESSAR Company)
- 6.1.4 EITC Group (du)
- 6.1.5 HP Middle East
- 6.1.6 IBM Corporation
- 6.1.7 Wipro Group
- 6.1.8 Ooredoo Group
- 6.1.9 Diyar United Group
- 6.1.10 ACS Group
- 6.1.11 MEEZA Group
- 6.1.12 Emitac
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS