GCC Managed Services Market Size
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and it's growth?
GCC Managed Services Market Analysis
GCC Managed Services Market is expected to register a CAGR of 9.2% during the forecast period. The GCC region of the Middle East has been viewed as a region that lags in IT spending.However, the scenario changes, considering the government, large organizations, and small-to-medium enterprises (SMEs), as well as start-ups across all industries in the region, are slowly realizing the need to transform digitally.
- Utilizing cutting-edge technologies like artificial intelligence (AI), cloud computing, and others will eventually enable firms to meet various functional business requirements while promoting business process improvement. Managed services offer efficient features at low rates without sacrificing quality. In addition, she worked in service support and guaranteed the consistency and dependability of services provided for various business operations.
- In a recent study by Microsoft, two in three Gulf enterprises reported that they were planning to invest at least 5% of their annual revenue in digitizing their operations. Further, up to 51% of organizations reported having prioritized cloud computing, business intelligence (41%), the Internet of Things (37%), and Artificial Intelligence (29%). Therefore, the region, which is expected to register a significant growth rate in IT upgrades, is expected to provide a greater demand for managed services.
- Further, the GCC region has also been the target of cyberattacks since The facts presented by FireEye, a prominent cybersecurity vendor, clearly indicate that cloud security will become a trend in the region over the next few years. For instance, FireEye mentioned that Saudi Arabia witnessed more than 1,640,000 online attacks daily. Considering the progress of the area in the direction of artificial intelligence and IT experience (Vision 2030) and their dependency on the cloud, cloud security might flare up in the region over the forecast period.
- The managed services market's expansion is anticipated to be constrained throughout the forecast period by a pervasive lack of expertise and experience in integrating new technologies and putting managed services in place. The market's expansion is anticipated to be constrained by additional issues, including doubts about the effectiveness of managed services models, worries about data security and privacy protection, and the requirement for qualified personnel.
The COVID-19 pandemic epidemic, which forced firms to turn aggressively to remote working, was said to be the cause of this development. Nearly 55% of businesses approached managed service providers to choose their value-added services. Lower security risks have increased as employees have worked remotely since the pandemic's outbreak. Business partners and customers exclusively used electronic communication, according to an IDG report commissioned by NTT Ltd. These trends were anticipated to offer managed service companies tremendous growth potential in the near and long term. Overall, the market for managed services in GCC countries was driven by the region's increasing cloud penetration, network upgrades, and focus on the digital economy.
GCC Managed Services Industry Segmentation
Managed services involve the outsourcing of services related to infrastructure, security, mobility and other functions, while the ownership rights stay with the end-user. The demand for managed services across GCC countries is analyzed in this study.
GCC Managed Services Market is segmented by Type (Managed Infrastructure Services, Managed Hosting Services, Managed Security Services, Managed Cloud Services, Disaster Recovery & Business Continuity Services), End-user Industry (IT & Telecom, BFSI, Oil & Gas, Healthcare, Government), and Country (Saudi Arabia, UAE, Qatar, and Other GCC Countries).
The market sizes and forecasts are provided in terms of value (in USD million) for all the above segments.
|Managed Infrastructure Services|
|Managed Hosting Services|
|Managed Security Services|
|Managed Cloud Services|
|Disaster Recovery & Business Continuity Services|
|IT & Telecom|
|Oil & Gas|
|Other End- user Verticals (Retail, Education, etc.)|
|Other GCC Countries|
GCC Managed Services Market Trends
This section covers the major market trends shaping the GCC Managed Services Market according to our research experts:
Managed Hosting Services expected to grow significantly over the forecast period
- The client needs to be managed to host services to lower costs for IT infrastructure, increase security, and maintain ownership rights to data. One significant trend in the managed hosting market is the increasing use of virtualized technology, which is predicted to persist over the forecast period. Managed hosting services help virtualization by making the virtualized environment less expensive and less complicated.
- Hosting service providers linked to hardware makers and cloud providers have provided clients with exclusive services. These data centers are adaptable and may be used for everything from straightforward data warehousing to data analytics. These exceptional features make hosting manageable while lowering costs, which is anticipated to benefit the global GCC managed services market throughout the forecast period.
- The growth of the data center market in the GCC countries is being driven by both government-led infrastructure growth and the fact that more and more businesses are moving their operational applications to the cloud.
- Considering the GCC enterprises' limited IT budget and the lack of in-house capabilities to keep abreast with the evolving technologies, the region's dependency on Data Center service providers can be rated as high.
- Cloud service providers, including Microsoft, Google, and AWS, have been making significant regional investments and have expanded their footprints. According to AWS, which opened three data centers in Bahrain, the region has been the most requested by its global partners. With the new data centers, enterprises in the region can move to a cloud system hosted by a specialist company, which will be cheaper than building their own infrastructure of servers, hardware, and security networks.
To understand key trends, Download Sample Report
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 drive intelligent transformation for enterprises across the UAE.
- Further, in partnership with telecom players, cloud and other technology players such as Microsoft, Ericsson, and Cisco are looking to transform businesses in the region digitally. With increased awareness of these technologies, the region is expected to increase its spending on upgrading its IT infrastructure, thus increasing the scope for managed service providers in the region.
- The region has evidently developed and extended strategic partnerships to enable managed services. For instance, in February, 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, DUP will continue to deliver advanced network solutions with increased operational and network efficiency.
- Moreover, in the UAE and Saudi Arabia, 74% of organizations are worried about brand abuse, according to a Gulf Business article. However, according to a different Gulf News report, a Domain-based Message Authentication, Reporting & Conformance (DMARC) record is in place for 69% of the Forbes "Top 100 Middle East Companies." This indicates that email fraud is a possibility for about 31% of these businesses. Such attacks further drives the use of managed services in the region.
To understand geography trends, Download Sample Report
GCC Managed Services Industry Overview
The GCC Managed Services market comprises a significant share of homegrown companies and international companies such as HP, IBM, and Wipro, among others. The region also has small, managed service providers who are part of large companies' partner programs, such as Cisco. Some of the recent developments in the market are:
In September 2022, together with Cisco, Wipro created a hybrid cloud solution that is agile, programmable, and adaptive by combining the edge, private, and public clouds. The full-stack IT-as-a-service platform will use technologies from Cisco's Full Stack Observability solution, such as AppDynamics, ThousandEyes, Cisco Workload Optimization Manager (CWOM), Intersight, and Secure Application.
In February 2022, by better utilizing the intelligence from their network data, Nokia will introduce two new managed service offerings to assist communication service providers (CSPs) in providing a better customer experience and realizing faster returns on their 5G investments.
GCC Managed Services Market Leaders
Etihad Etisalat Co. (Mobily)
AGC Networks (An ESSAR Company)
EITC Group (du)
Saudi Telecom Company
*Disclaimer: Major Players sorted in no particular order
GCC Managed Services Market News
- May 2022: To hasten its clients' digital transformation (DX) in the financial and retail sectors, Fujitsu announced that it had signed a strategic collaboration agreement with Amazon Web Services (AWS). This agreement calls for the development of new services on AWS. According to this contract, Fujitsu will make these new services available to consumers locally and internationally in the AWS Marketplace. Additionally, Fujitsu will use AWS Professional Services (2) to assist clients in creating and running new systems and updating their current systems with the breadth and depth of AWS services.
- July 2022: To meet the changing needs of SMBs, Cisco introduced a new Webex Wholesale Route-to-Market (RTM) for service provider partners. The new sales model gives service providers a self-service platform to deliver managed services for Webex and the agility, scalability, and flexibility to develop their co-branded offers. It also includes a single commercial agreement with each partner.
GCC Managed Services Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Market Drivers
4.3.1 Growing Demand for Outsourcing of Noncore Operations in the BFSI and Retail Sector
4.3.2 Trend Toward Commoditization of Services and Growing Competition among MSPs
4.3.3 Growing Demand towards Managed Hosting Services to boost the market
4.4 Market Restraints
4.4.1 Integration and Regulatory Issues and Reliability Concerns
4.5 Key Market Considerations and Emerging Use Cases
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Managed Infrastructure Services
5.1.2 Managed Hosting Services
5.1.3 Managed Security Services
5.1.4 Managed Cloud Services
5.1.5 Disaster Recovery & Business Continuity Services
5.2 End-user Vertical
5.2.1 IT & Telecom
5.2.3 Oil & Gas
5.2.6 Other End- user Verticals (Retail, Education, etc.)
5.3.1 Saudi Arabia
5.3.4 Other GCC Countries
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 Etihad Etisalat Co. (Mobily)
6.1.3 Saudi Telecom Company
6.1.4 HP Middle East
6.1.5 ACS Group
6.1.6 IBM Corporation
6.1.7 Diyar United Group
6.1.8 Ooredoo Group
6.1.9 Wipro Group
6.1.10 AGC Networks (An ESSAR Company)
6.1.11 MEEZA Group
6.1.12 EITC Group (du)
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
GCC Managed Services Market Research FAQs
What is the study period of this market?
The GCC Managed Services Market market is studied from 2019 - 2027.
What is the growth rate of GCC Managed Services Market?
The GCC Managed Services Market is growing at a CAGR of 9.2% over the next 5 years.
Who are the key players in GCC Managed Services Market?
Etihad Etisalat Co. (Mobily), AGC Networks (An ESSAR Company), EITC Group (du), Saudi Telecom Company, IBM Corporation are the major companies operating in GCC Managed Services Market.
GCC Managed Services Industry Report
Statistics for the 2023 GCC Managed Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Managed Services analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.