Managed Services Market size in Saudi Arabia to grow by USD 963.48 million from 2022 to 2027, The growing demand for outsourcing non-core operations in banking, financial services, insurance (BFSI), and the retail sector drives market growth, Technavio

NEW YORK, March 11, 2024 /PRNewswire/ -- The managed services market in Saudi Arabia is set to grow by USD 963.48 million from 2023 to 2027. The market is estimated to be progressing at a CAGR of 6.93% during the forecast period. The increased demand for outsourcing non-essential operations within the banking, financial services, insurance (BFSI), and retail sectors is significantly propelling market expansion. Notably, banks and financial institutions are increasingly delegating their IT functions, including data management, software development, and customer support, enabling them to focus on core competencies such as risk management, investments, and regulatory compliance. This strategic approach not only reduces costs but also enhances operational efficiency, thereby elevating service delivery standards for clients. Similarly, retail businesses are leveraging outsourcing for tasks like supply chain management, logistics, and inventory management to optimize resource allocation and bolster competitiveness. In Saudi Arabia, managed services providers empower businesses to outsource non-core functions while retaining operational oversight. Offering a comprehensive suite of services encompassing Infrastructure Management, Application Management, Data Analytics, and Security Management, these providers ensure seamless planning, design, implementation, and maintenance solutions. Consequently, these dynamics are poised to drive market growth and trends throughout the forecast period.

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Key Companies

The managed services market in Saudi Arabia is fragmented in nature. The managed services market in Saudi Arabia is in its growth phase. At present, client organizations across the world are focusing on process automation, simplification of the IT environment, and the development of the economic cost structure, which will provide a favorable spending environment for the market during the forecast period. The vendors are deploying organic and inorganic growth strategies to compete in the market.

• ACS Services Inc. - The company offers managed services that are designed to reduce physical infrastructure footprint, foster faster innovation and provide new pathways for digital transformation.
• Amazon.com Inc. - The company offers managed services that are designed to adopt Amazon web services at scale and operate more efficiently, thus providing proactive, preventative, and detective capabilities to raise the operational bar for reducing risk without constraining agility.
• AO Kaspersky Lab - The company offers managed services that are designed to provide a wide range of information technology security services from endpoint security to hybrid cloud protection.

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Key Market Segmentation

This Saudi Arabia managed services market report extensively covers market segmentation by type (MDS, MNS, MSS, MMS, and others), deployment (cloud and on-premises), and end-user (government, financial services, healthcare, oil and gas, and others).

• The market share growth by the MDS segment will be significant for overall market growth during the forecast period. Factors such as the lower operating costs of MDS are a significant benefit. Businesses can decrease print and paper waste while enhancing document workflow efficiency by implementing document management systems and automating procedures. Moreover, companies can rationalize their printers, copiers, scanners, and other document-related equipment with managed print services (MPS), resulting in cost savings. It also improves document security by employing secure print solutions that enable businesses to stop sensitive documents from falling into the wrong hands. Hence, such factors drive segment growth during the forecast period.

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Companies Covered

• 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.
• Zoho Corp. Pvt. Ltd.

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The increase in the adoption of cloud-based managed services in Saudi Arabia is an emerging trend influencing market growth. 

This trend can be attributed to the various benefits, including scalability, flexibility, and cost-effectiveness. Furthermore, factors such as the growing demand for digital transformation across various industries also drive the demand for the adoption of cloud-based managed services.

Businesses understand why they must adopt cloud-based solutions to stay competitive, now that technology is advancing so rapidly. Moreover, due to the COVID-19 pandemic, the shift toward cloud-based solutions has accelerated as businesses had to adopt remote work practices. Hence, such a trend boost market growth during the forecast period. 

• Data and privacy issues are major challenges hindering the market growth. 

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Analyst Review

In recent years, the Saudi Arabia Managed Services Market has witnessed remarkable growth, driven by the increasing adoption of digital technologies and the imperative for businesses to optimize their operations. The market has been characterized by a compound annual growth rate (CAGR) that reflects the burgeoning demand for managed IT services across various sectors.

Downtime redundancy has become a critical concern for businesses in Saudi Arabia, prompting the need for secure and customized IT solutions that ensure continuous operations. As businesses seek to enhance their efficiency and productivity, they are turning to customized value-added services such as application testing, service catalog building, and expert consultancy to streamline their processes.

With the rise of cloud-based technologies, including cloud platforms and cloud managed services, Saudi Arabian enterprises are embracing cloud migration strategies to achieve business scalability and operational flexibility. This shift towards cloud management is bolstered by strategic partnerships with leading providers like Microsoft Operator Connect and Sinch, offering cloud & infrastructure managed services and security & compliance solutions.

As the threat landscape evolves, cybersecurity has become paramount, driving demand for managed security services (MSSs) and cyber security managed services. Managed service providers (MSPs) such as Synoptek and Aeries Technology offer comprehensive solutions encompassing application security services, data security & privacy, and identity & access management to mitigate cyber threats and safeguard confidential data.

Moreover, the proliferation of cutting-edge technologies like machine learning, artificial intelligence (AI), and Internet of Things (IoT) is reshaping business paradigms in Saudi Arabia. Companies are leveraging RPA-managed services from providers like UiPath and Neostella to automate processes and drive business process optimization. Additionally, augmented reality and business intelligence tools empower organizations to enhance business performance and gain actionable insights.

In conclusion, the Saudi Arabia Managed Services Market is poised for continued growth as businesses prioritize digital transformation to improve operational efficiency and focus on their core competencies. With a wide array of services spanning from managed network services to endpoint management solutions, the market offers comprehensive solutions to address the diverse needs of enterprises in the region.

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Market Overview

In the global managed services market, Saudi Arabia showcases promising growth, with a robust compound annual growth rate (CAGR) attributed to its burgeoning digital transformation initiatives. To mitigate risks, downtime redundancy measures are paramount, ensuring seamless operations. Providers offer customized value-added services, including comprehensive application testing and meticulous service catalog building tailored to diverse client needs. Leveraging expert consultancy, businesses navigate complexities efficiently, aided by advanced monitoring tools for proactive management. Despite challenges of isolated teams, the integration of services on a unified cloud platform fosters collaboration and efficiency. In this dynamic landscape, Saudi Arabia's managed services market thrives on innovation and adaptability.

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Related Reports:
The cloud-managed services market size is expected to increase to USD 52.62 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 10.37%. Furthermore, this report extensively covers cloud-managed services market segmentation by end-user (large enterprise and small and medium enterprise) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The rising adoption of cloud computing services is notably driving the cloud-managed services market growth.

The managed IT infrastructure services market size is expected to increase to USD 64.51 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 10.34%. Furthermore, this report extensively covers managed IT infrastructure services market segmentation by end-user (small and medium enterprise and large enterprise) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The rising adoption of cloud-based managed security services (MSS) is notably driving the managed IT infrastructure services market growth.

Key Topics Covered:

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. Geographic Landscape
11. Drivers, Challenges, and Trends
12. Company Landscape
13. Company Analysis
14. Appendix

About US
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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