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The Saudi Arabia Managed Services market size is estimated to grow by USD 963.48 million at a compound annual growth rate (CAGR) of 6.93% between 2022 and 2027. The growth of the market depends on several factors, including growing demand for outsourcing non-core operations in banking, financial services, and insurance (BFSI) and the retail sector, increase in adoption of the organization as a service (OaaS) in managed services, and increasing adoption of managed services in various sectors.
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The growing demand for outsourcing non-core operations in banking, financial services, insurance (BFSI), and retail sector is notably driving the market growth, although factors such as data and privacy issues may impede the market growth. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for outsourcing non-core operations in banking, financial services, insurance (BFSI), and the retail sector is notably driving market growth. Banks and financial institutions are increasingly contracting out their IT tasks, such as data management, software development, and customer support, in the BFSI industry. As a result, they are able to concentrate on their core skills, which include risk management, investments, and regulatory compliance. As a result, they can lower expenses, boost operational effectiveness, and provide their clients with better services. Similarly, businesses in the retail industry are outsourcing non-core tasks like supply chain management, logistics, and inventory management. This helps them to better utilize their resources and become more competitive.
Businesses in Saudi Arabia are able to outsource their non-core functions while keeping control over their operations due to managed services providers. Services like Infrastructure Management, Application Management, Data Analytics, and Security Management are among the many services that they provide. Additionally, they offer complete solutions that cover planning, designing, implementing, and maintaining. Hence, such factors are expected to drive the market growth and trends during the forecast period.
The increase in the adoption of cloud-based services in Saudi Arabia is one of the major market trends. The numerous benefits that cloud-based solutions provide, including scalability, flexibility, and cost-effectiveness, are primarily responsible for this trend. The growing demand for digital transformation across various industries is one of the primary factors driving Saudi Arabia's increased adoption of cloud-based services. Now that technology is advancing so rapidly, businesses understand why they must adopt cloud-based solutions to stay competitive.
Additionally, the government's growing investment in infrastructure and technology is a significant factor which is growing the use of cloud-based services. The potential of cloud computing and its significance in fostering innovation and national economic expansion have been acknowledged by the government. In order to support the development of cloud technology, the government has made significant investments in infrastructure development. Furthermore, cloud-based solutions have shown to be more cost-effective than conventional on-premise solutions because they spare businesses from the significant up-front capital costs and ongoing maintenance expenses linked to on-premise solutions. Hence, such factors are expected to drive the growth of the market during the forecast period.
Data and privacy issues are major challenges impeding the market growth. Managed services can encounter data and privacy problems in a variety of ways. For example, when a company outsources its IT operations to a third-party service provider, it gives the provider access to its private information and sensitive data. If the service provider is not adequately regulated or vetted, this may result in data breaches, hacks, or leaks of sensitive information, which may cause serious reputational harm, monetary losses, or even legal action. Businesses in Saudi Arabia must carefully consider the security and privacy policies of any potential managed provider before signing a contract in order to reduce these risks. This might entail performing extensive research and selecting a provider with solid security credentials and a proven track record in safeguarding customer data.
Businesses can further protect data and privacy by selecting managed service providers that employ two-factor authentication and encryption technology to safeguard sensitive data. To prevent unauthorized access to their systems and networks, they can also put in place stringent access controls, such as firewalls, user IDs, and passwords. By selecting managed service providers who are committed to transparency in their data handling practices, businesses can protect their privacy. This might entail requesting regular reports on data security and privacy practices from service providers, training staff members, and routine audits to ensure compliance with all relevant laws. Hence, such factors are expected to hinder the growth of the market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Diyar United Co. - The company is involved in offering innovative information and communication technology solutions and services in the state of Kuwait.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market share growth by the MDS segment will be significant during the forecast period. In Saudi Arabia, MDS is an essential component of services. MDS refers to the management of a business document infrastructure and procedures in order to increase productivity, lower operating expenses, and boost security. Organizations can concentrate on their core competencies while outsourcing MDS to professionals who can handle all aspects of document automation, reproduction, and management.
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The MDS segment was valued at USD 643.47 million in 2017 and continued to grow until 2021. The lower operating costs of MDS are a significant benefit. Companies can rationalize their printers, copiers, scanners, and other document-related equipment with managed print services (MPS), resulting in cost savings. Additionally, businesses can decrease print and paper waste while enhancing document workflow efficiency by implementing document management systems and automating procedures. MDS also improves document security. Employing secure print solutions enables businesses to stop sensitive documents from falling into the wrong hands. This is crucial in fields like healthcare, law, and finance where protecting sensitive data is crucial. Moreover, MDS enhances document sharing and access in addition to saving money and enhancing security. To allow employees to access and collaborate on documents from a distance, businesses can use cloud-based document storage and sharing solutions. This increases workforce productivity and improves the general customer experience. Hence, such factors are expected to drive the growth of the MDS segment in the market during the forecast period.
The Saudi Arabia Managed Services Market presents a dynamic landscape, offering a spectrum of solutions to address diverse business needs. With a focus on downtime redundancy and operational efficiency, providers deliver customized value-added services including application testing and service catalog building. Expert consultancy and monitoring tools ensure seamless operations, while isolated teams enhance security. Leveraging cloud platforms, managed IT services encompass strategic partnerships and professional services. Security remains paramount, with offerings spanning from cyber threats to compliance certifications. Additionally, innovative technologies like IoT, blockchain, and AI bolster business productivity, while managed network services cater to network complexities. Amidst cyberattacks, managed security services safeguard key assets, ensuring robust business management.
The market growth and forecasting market report covers market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope in Saudi Arabia |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.93% |
Market growth 2023-2027 |
USD 963.48 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.78 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ACS Services Inc., Alphabet Inc., Amazon.com Inc., AO Kaspersky Lab, Atos SE, Cisco Systems Inc., Diyar United Co., eHosting DataFort, Fortinet Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Juniper Networks Inc., Microsoft Corp., Nokia Corp., Palo Alto Networks Inc., Security Matterz, Telefonaktiebolaget LM Ericsson, Wipro Ltd., and Zoho Corp. Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market trends and analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Deployment
8 Market Segmentation by End-user
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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