Press Release

Saudi Arabia IT Services Market is expected to grow at a robust CAGR of 8.06%

Several initiatives, including the National Transformation Program and Digital Saudi program, are driving IT adoption across various sectors. As organizations strive for digital transformation, this is fueling significant growth in the IT services market.


According to TechSci Research report,Saudi Arabia IT Services Market – By Region, Competition, Forecast and Opportunities, 2018-2028”, The Saudi Arabian government, under its Vision 2030 program, has made substantial investments in digital transformation. Vision 2030 aims to diversify the economy, reduce dependency on oil, and enhance the IT sector. The National Transformation Program (NTP) includes initiatives to develop e-government services, digital infrastructure, and smart cities, driving significant demand for IT services. Both the public and private sectors are actively investing in digital transformation to streamline operations and enhance customer experiences. This includes adopting technologies like cloud computing, big data analytics, IoT, and artificial intelligence (AI). IT services are critical for implementing and managing these digital initiatives. Businesses across various sectors, such as finance, healthcare, and education, are increasing their IT budgets to stay competitive. IT services, including consulting, software development, and infrastructure management, are in high demand to support these initiatives. A growing number of Saudis have access to the internet, with a substantial part of the population using smartphones. This increased connectivity is driving the need for IT services related to online commerce, mobile applications, and digital content delivery.


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With the increasing reliance on digital technology, there's a growing awareness of cybersecurity threats. This has led to a surge in demand for IT security services, including threat detection, data protection, and risk management. To meet the demand for IT services, there's an emphasis on developing a skilled workforce. This includes investments in IT education and training programs to equip the Saudi workforce with the necessary skills for the IT sector.

Emerging Startups and SMEs: Saudi Arabia has been actively supporting the growth of startups and small to medium-sized enterprises (SMEs) through various programs and funding initiatives. These businesses often require IT services for web development, mobile apps, and cloud infrastructure. Cloud computing is becoming increasingly popular in Saudi Arabia due to its scalability and cost-efficiency. Organizations are adopting cloud services, and this trend is driving demand for IT services related to cloud migration, management, and optimization. E-commerce is experiencing substantial growth, with more consumers shopping online. This trend is boosting demand for IT services, such as e-commerce platform development, digital marketing, and payment processing solutions. The Kingdom is investing in expanding its telecommunications infrastructure, including 5G networks. This provides opportunities for IT services related to network optimization, IoT connectivity, and other telecommunications technologies. The healthcare sector in Saudi Arabia is increasingly adopting health information systems, telemedicine, and electronic health records. IT services are essential for implementing and maintaining these systems.

Smart Cities Development: Several cities in Saudi Arabia, like Neom and Riyadh, are undergoing transformation into smart cities. This involves the deployment of advanced technologies in various sectors, including transportation, energy, and healthcare, driving demand for IT services. The Kingdom is collaborating with global tech giants to establish data centers and innovation hubs. This collaboration is creating opportunities for IT services and knowledge transfer. Saudi Arabia is enacting regulatory reforms to attract foreign investments and facilitate business operations. These reforms are likely to further boost the IT services market. The government's push for Saudization, which involves employing more Saudi nationals in the private sector, is also driving growth in the IT services sector as local talent gets opportunities for training and employment.

In conclusion, the IT services market in Saudi Arabia is experiencing substantial growth due to a combination of government initiatives, digital transformation efforts, increased IT spending, and the rise of digital technologies. The diversification of the economy away from oil dependency is a key driver, and Saudi Arabia's Vision 2030 is at the forefront of this transformation. To create a comprehensive essay, you can elaborate on each of these drivers and their specific impacts on the IT services market in Saudi Arabia.


Key market players in the Saudi Arabia IT Services Market are:-

  • Accenture Saudi Arabia Limited
  • Cisco Saudi Arabia Limited Company
  • Ejada Systems Ltd
  • IBM Middle East - FZ LLC
  • Microsoft Arabia
  • SAP Saudi Arabia Software Services Co. Ltd.
  • Oracle Systems Limited Saudi Arabia
  • Infosys Arabia Ltd.
  • Saudi Ericsson Communication Co. Ltd.
  • Saudi Telecom Company

 

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“The increasing adoption of e-governance is a key trend in the Saudi Arabia - IT market. Saudi Arabia was ranked 9th in the United Nations (UN) E-Government Development Index (EGDI) in 2020. The economy of Saudi Arabia can be substantially improved through the Vision 2030 program. The government has increased the possibility of online services over the last decade.

Moreover, Vision 2030 also supports the increased use of online applications in government sector agencies, such as cloud applications, data-sharing platforms, and HR management systems.  In Saudi Arabia, online services in the government are planned to be strengthened. The country is also expected to see the increased use of cloud computing in other areas as well, which will fuel the growth of the market in focus during the forecast period.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

“Saudi Arabia IT Services Market Segmented By Service Type (Managed Services, Professional Services), By Organization Size (Small and Medium Enterprise, Large Enterprise), By Deployment Type (On-Premises, Cloud-Based), By Business Functions (Finance & Accounting, Operations & Support, Human Resources, Sales & Marketing, Supply Chain Management, Others), By End-User Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Manufacturing, Retail, Others) By Region, and By Competition, 2018-2028,” has evaluated the future growth potential of Saudi Arabia IT Services Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Saudi Arabia IT Services Market.


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