MEA region's spending on IT and business services is anticipated to grow despite potential global recession based on IDC's Worldwide Semiannual Services Tracker. MEA's spending for these services is expected to reach $30.3 billion in 2023, a 5.0% increase from 2022.
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IDC predicts that the market will then have a CAGR of 5.9%, concluding with a $38.1 billion spend in 2027. Senior Research Analyst at IDC, Suraj Godse, highlights that the market will continue to grow due to factors such as the stable economies of Gulf oil-producing countries, government spending, and local cloud services. However, it is critical to note that the growth rate has decreased since 2018.
IDC stated that managed services and project-oriented services will be the fastest-growing market sectors in 2023, with managed services predicted to have the highest CAGR of 7.6% until 2027. The IDC report emphasizes the importance of IT and business services in the MEA region, as well as the advantages of expanding operations or investing in new opportunities within the market.
Increased IT expenses and the potential for a recession has put pressure on CIOs to reduce IT expenses; therefore, they are searching for cost-effective OPEX-based IT solutions, says Suraj Godse. Cloud-related services are also contributing to IT services revenue growth while enabling organizations to expand their cloud usage through a hybrid multicloud approach, resulting in added cost savings.
IDC's Worldwide Semiannual Services Tracker provides vendor revenue share and yearly projection statistics on a semiannual basis across 53 regions and 14 market sectors, allowing local and international firms to evaluate themselves and analyze the service sector's progress.