By IANS
Dubai : The IT services market in the United Arab Emirates (UAE) has crossed a record half a billion-dollar mark and spending in the market is expected to expand further this year, according to a report by the International Development Company (IDC).
The UAE IT market is increasingly embracing the outsourcing model and other value-added services as it matures, news agency WAM quotes the Abu Dhabi-based IDC study as saying.
According to the study, IT services spending in the UAE will go up to nearly $508 million.
IDC is a global market intelligence and advisory firm in the information technology and telecommunications industries and conducts analysis on technology trends.
While standard installation and support services still make up the largest chunk of the IT services market, the increased adoption of outsourcing and consulting services point to more strategic IT decision-making within the region, and are a clear sign of maturation within the IT services sector, the report says.
“We’re entering a new era and vendors will need to change tactics to take advantage of it,” said says Margaret Adam, senior IT services analyst for IDC.
“IT services providers should streamline their operations and focus on strategic alliances, developing a pool of highly skilled individuals who can educate customers to the benefits of technology to their business.”
The type of services most in demand are hardware and software support and installation, accounting for a third of total market value, followed by systems integration with 26.1 percent share, and customisation services with 16.3 percent.
The top three players on the UAE IT services market in 2006 were Middle East Data Systems UAE (MDS UAE), Emirates Computers, and Injazat, which together garnered less than a quarter of total revenue.