GCC Managed Service Market

GCC Managed Service Market Statistics: 2027

Managed services are outsourcing functions that transfer in-house functionalities to be handled by managed service providers (MSPs). By increased globalization and complexity of the global corporate landscape, companies in the Gulf Corporation Council (GCC) are moving toward smarter and easily achievable solutions to deal with issues such as reducing cost and focusing on core competencies. All these objectives are achieved through adoption of managed services. Increase in difficulty in data protection, data handling issues, information security management, setting up communication networks such as LAN/WAN, and getting mobile services drives growth of this industry. The services offered are used across industries irrespective of size of their business, from SMEs to large corporations.

COVID-19 Scenario Analysis:

• Amazon Web Services (AWS) has announced that it is making available a data lake for COVID-19 analysis. The data lake includes metrics like case tracking data from Johns Hopkins and New York Times, hospital bed availability from Definitive Healthcare and over 45,000 COVID-19 research articles. Researchers can also conduct analysis of the data in the cloud, saving time that would be spent downloading the data.
• AWS has also connected Amazon Athena for queries and Amazon Quick Sight for visualization.
• Virtual private networks (VPN) and remote desktop solutions, which extend functionality and security of in-office network and software resources to at-home users are helping organizations stay productive while offices remain closed.

Top impacting factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis

Increase in need for cyber security among organizations in GCC is a major factor that boosts growth of the managed service market. Moreover, rise in demand for managed services among small and medium-sized enterprises in GCC is also a factor expected to positively impact the GCC managed service market growth. However, shortage of talented IT professionals can hamper the GCC managed service market growth. Contrarily, rise in adoption of private cloud solutions among SMEs and rise in use of social media for business functions are the opportunistic factors of the GCC market.

Rise in need for cyber security

The world is going digital at an unprecedentedly rapid pace and the change is going to get faster in the future. Digitalization means whole processes shifting at lightning speed such as entertainment, business, trends, and new products. Consumer receive what they want immediately as service providers  would have means to deliver it. While the and benefits of this digital era are many, it also brings several negatives with it. One of the most significant and critical threats it poses is that personal information is at risk. 

Cyberattacks are very prevalent in nature and affect every individual, business, and government or private sectors. Firms must detect a cyberattack in advance to avoid any errors or threats. Artificial Intelligence has proven to be enormously useful when it comes to detecting cyber threats based on analyzing data and recognizing a threat before it exploits a susceptibility in information systems.  

GCC has also been the target for cyberattacks. The facts given by FireEye, a prominent cybersecurity vendor, is a strong indicator of cloud security turning into a trend in the region over the next few years. For instance, FireEye stated that Saudi Arabia observed more than 1,64,00 online attacks in a single day. Contemplating the progress of region in the direction of AI and IT experience (Vision 2030) and their reliance on cloud, cloud security might flare up in the region during the forecast period.

Shortage of talented IT professionals

Presently, IT skill gap continues to expand with rise in demand and insufficient supply. According to a World Economic Forum report, 133 million new roles may emerge globally by the year 2022. The primary rise in drivers consist of proliferation of AI and Machine Learning technologies. Despite evolution of technology, businesses are expected to depend on human workforce for creative problem solving. Intelligent computing systems are anticipated to add human workforce and not entirely replace them, which, in turn, would require organizations to re-skill their workforce to take advantage of the technology innovations.

As businesses need to maintain and optimize ever increasing technology, they require more people to support this mission. Many companies are pursuing digital transformation initiatives only to realize the projects are essentially dependent upon onboarding individuals with right skillset. As a result, a sudden rise in the number of IT skills has emerged in recent years.

Jobs in IT grew by 13 % between 2002 and 2013, however, those who graduated with IT degrees decreased by 11 % over the same period. IT skill requirements also change rapidly through the years. In the period, an average of 42% of shift in IT skills is expected to occur from 2018 to 2022. Hiring managers are increasing their focus on recent graduates equipped with the latest digital skills most relevant to their digital transformation initiatives.

Key benefits of the report:

• This study presents the analytical depiction of the global GCC managed service industry along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global GCC managed service market share.
• The current GCC managed service market is quantitatively analyzed from 2020 to 2027 to highlight the market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the GCC managed service market. 
• The report provides a detailed GCC managed service market analysis based on the present and future competitive intensity of the market.

 GCC Managed Service Market Report Highlights