BWI: Frost & Sullivan: Managed Services Market in the UAE Expected to Grow at a CAGR of 17 per cent Over the Next Five Years

Press release from Business Wire India
Source: Frost & Sullivan
Wednesday, November 28, 2012 02:17 PM IST (08:47 AM GMT)
Editors: General: Economy, People; Business: Business services, Information technology, Telecommunications; Technology
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Frost & Sullivan: Managed Services Market in the UAE Expected to Grow at a CAGR of 17 per cent Over the Next Five Years


Dubai, United Arab Emirates, Wednesday, November 28, 2012 -- (Business Wire India) -- In order to decrease the economy's dependency on oil and gas, the United Arab Emirates (UAE) is fostering the Information and Communication Technologies (ICT) industry through investments in its ICT-related infrastructure, business parks and technology incubators. The UAE is considered the largest ICT investment and development zone among the Gulf Cooperation Council (GCC) as it has the advantages of competitive labour cost and quality infrastructure. The UAE is also dominating the Managed Services market in the GCC. According to Frost & Sullivan, the country's Managed Services market is expected to grow at a compound annual growth rate (CAGR) of 17 per cent over the next five years.

In 2011, the Managed Services market in the UAE grew by 12.9 per cent to reach USD 333 million. This growth is expected to accelerate in the next three years due to increasing demand from core growth industries such as retail, healthcare, and manufacturing. Also, the anticipated launch of cloud computing is likely to increase the uptake by small and medium businesses, which currently represent 34 per cent of the total spending in the Managed Services market.

Infrastructure support, application, and web hosting services dominate the UAE Managed Services market. Frost & Sullivan expects the demand for virtualisation, business continuity, and disaster recovery to grow faster than that for other types of managed services. The issue of mobility and Bring-Your-Own-Device (BYOD) is expected to receive more attention from managed service providers, bolstering the network security needs of the market over the next two to three years. Government spending on IT infrastructure, labour, and price arbitrage are the main driving forces behind the growth of Managed Services market in the UAE.

"The Government in the UAE is spending to introduce new technologies in IT and improve the cloud computing network to facilitate e-governance in the country. As a large portion of the IT spending is dedicated to IT infrastructure development, the Managed Services market in the UAE is expected to grow over the next two to three years", says Haritha Ramachandran, Program Manager, ICT Practice, Middle East and North Africa, Frost & Sullivan.

While the Managed Services market growth rates in the UAE are trailing those of the Kingdom of Saudi Arabia and Qatar, the UAE market is more mature, due to higher competition amongst numerous players like telcos, data centre hosting service providers, and local and international system integrators. Data centre hosting is a niche service in the UAE, contributing 18 per cent of the Managed Services market revenue.

Further, the uptake of managed services has grown as companies have started to focus on their core activities and trying to reduce their IT spend. Managed services offers diminished total cost of IT equipment ownership, a shift to the opex model. Infrastructure support such as managed desktop, managed network, managed telephony, and managed data and printer services are the key service areas patronised in the UAE Managed Services market.

Frost & Sullivan's recent study on Managed Services market indicates that the Education and Healthcare verticals registered highest growth rates in the market at 28.2 and 22.8 per cent, respectively in 2011. While the Government vertical remained the core vertical, the Banking and Financial Services, IT, and Telecom verticals together generated 54 per cent of the total market revenue in the same year. Considering the pertinence of the Managed Services and enterprise Security, Frost & Sullivan will soon be oganising a Summit to convene the best minds in Enterprise Security under one roof to create an interactive milieu for exchange of knowledge and ideas.

If you are interested to know more about this Report, please send an e-mail with your contact details to Deepshri Iyer/Tanu Chopra, Corporate Communications, Frost & Sullivan, at deepshrii@frost.com/tanu.chopra@frost.com.

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CONTACT DETAILS
Tanu Chopra, Corporate Communications Middle East and North Africa, Frost & Sullivan, +91 9820480089, tanu.chopra@frost.com
Deepshri Iyer,Corporate Communications Middle East and North Africa, Frost & Sullivan, +91 (22) 66072038, deepshrii@frost.com
Nimisha Iyer, Corporate Communications Middle East, North Africa and South Asia, Frost & Sullivan, +91 9820050519, niyer@frost.com

KEYWORDS
ECONOMY, PEOPLE, BUSINESS SERVICES, IT, TELECOMMUNICATIONS, TECHNOLOGY

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