A new report by the International Data Corporation (IDC) says that the Middle East and Africa (MEA) region will spend $30.3 billion on IT and business services in 2023. This is a 5.0 percent increase from the $28.9 billion spent in 2022.
A study says that the area’s growth is due to its stable and robust oil-producing economies, investments in big projects and events, and the growth of cloud services in-country by hyperscalers.
After managed and project-based services, support and business services will be the next fastest-growing market group in 2023. IDC says that between 2023 and 2027, spending on managed services will grow at a compound annual growth rate (CAGR) of 7.6%, while spending on project-oriented services will grow at a CAGR of 5.7%.
But IDC says that growth could be slowed by higher IT costs due to inflation, problems in the IT supply chain, a lack of skilled workers, and pressure to cut IT costs.
IDC also talks about how companies are moving mission-critical apps to the cloud, speeding up cloud journeys, and how cloud-related services are growing IT services revenue.
Recent statements by cloud hyperscalers about the launch of in-country cloud services in the MEA region allow organizations to use a hybrid multi-cloud approach to use the cloud more and save more money.