Trends & Adoption of IT Services in Saudi Arabia

IT Services in Saudi Arabia

The IT Services Market in the Middle East was valued at USD 4 Billion in 2014 and is estimated to reach 6 Billion by the year 2016.  According to a report by Chamber of Commerce and Industry of one of the GCC Countries, there has been a growth of almost 10% annually over the last five years in the Middle East.

The government has major steps in supporting the IT initiatives in the entire region.  The government of Saudi Arabia has taken excellent initiatives to implement E Governance in major departments. A lot of government offices, schools and colleges are implementing E Governance which has helped them in their growth across the Kingdom.

One major factor for the growth of IT Sector in Saudi Arabia is the rapid growth of the SME segment over the past few years. This rapid growth of SME’s in the region has resulted in great demand for IT Services.  Basically it’s the Large Corporations & government organizations which are the major customers of IT Services in the region, however the rapid growth of the SME’s has resulted in a real increase in the demand of IT Services across the region. More and more SME’s are using technology to reduce the overall costs of an organization.  The trend keeps to be gaining momentum every passing year and is likely to grow more quickly in the coming years.

A lot of large Corporate and government organizations are the major trend setters in the Kingdom. The adoption of Project based IT Services which includes the likes of Customized software Development, Business Application & Development , IT Consulting , Enterprise Resource Planning (ERP) solutions & CRM implementations have helped these organizations manage their operations immensely.  A lot of these companies in Saudi Arabia now realize the importance of Cloud computing solutions. They understand the scalability and cost effectiveness it gets to their company and so a lot of private organizations are not integrating their IN HOUSE IT infrastructure with cloud based services.

Due to increase in demand of IT Services across the Kingdom, there is also increase in the number of IT Business Management Companies, Software Development Companies & Web Development companies in the Kingdom of Saudi Arabia. Due to this increase there is an increased competition to deliver better services at competitive prices across the entire region.  The adoption of Software and IT Solutions has helped product development life cycle and has helped companies to stream line their work flow. However, the IT Services market in Saudi Arabia still faces certain challenges which include the scarcity of highly qualified IT Professionals in the region. There are certain other challenges for the IT Services like the regulatory hurdles. A few softwares can affect the privacy of the data and so it becomes a regulatory hurdle.  There are also places in the Kingdom which has in adequate tele communication infrastructure and so it becomes challenging to carry out High end IT Enabled services across these zones.

Despite of all these challenges, IT Enabled Services will continue to grow at a rapid pace in the entire Kingdom of Saudi Arabia. The adoption of Project Based IT Services and the emergence of standard Software Development Companies in the Kingdom of Saudi Arabia are most likely to keep the IT Services Market Growth in the years to come.