Managed Services Market in Saudi Arabia to Expand by USD 949 Million (2024-2028), Driven by Outsourcing Demand in BFSI and Retail, with AI Redefining the Landscape- Technavio

NEW YORK, Nov. 29, 2024 /PRNewswire/ -- Report with market evolution powered by AI - The managed services market in saudi arabia size is estimated to grow by USD 949 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  6.51%  during the forecast period. Growing demand for outsourcing of non-core operations in banking, financial services, and insurance (BFSI) and retail sector is driving market growth, with a trend towards increase in adoption of cloud-based managed services in Saudi Arabia. However, data and privacy issues  poses a challenge. Key market players include 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., and Zoho Corp. Pvt. Ltd..

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Market Driver

The Managed Services Market in Saudi Arabia is experiencing significant growth due to the increasing adoption of remote work and hybrid work models. This shift has led to an increased demand for collaboration tools, outsourcing of IT infrastructure, and managed services from providers. The market is transitioning towards a subscription-based model, offering strategic solutions in cloud computing, cybersecurity, managed infrastructure, communications, mobility, and more. Large enterprises in IT and telecommunication, entertainment and media, and the digital realm are investing in managed services to enhance their cybersecurity posture. Managed security services, including vulnerability management, risk and compliance, detection and response, firewall management, and log management, are essential for mitigating cyber threats and protecting data. Managed services providers offer a range of service types, including fully managed and co-managed services for network security, cloud security, endpoint security, application security, and telecommunications. The market also caters to on-premises and cloud-based solutions, addressing the needs of various industries such as banking, transportation, healthcare, and e-commerce. The market's growth is driven by digital transformation, increasing cyberattacks, and the need for agility in service delivery. Managed service providers offer proactive security measures, threat monitoring, incident response, and cybersecurity awareness to help businesses stay ahead of cyber threats. The use of artificial intelligence and automation tools in hybrid security services further enhances security compliance and threat detection capabilities. In conclusion, the Managed Services Market in Saudi Arabia is a dynamic and evolving landscape, offering a range of services to help businesses navigate the digital economy and address their unique needs in the face of cybersecurity challenges. 

In Saudi Arabia, the use of managed services based in the cloud has gained significant traction. This trend can be explained by the benefits cloud solutions provide, including scalability, cost-effectiveness, and flexibility. The primary reason for this trend is the increasing demand for digital transformation across various industries in Saudi Arabia. Companies recognize the importance of adapting to cloud-based solutions to remain competitive in today's rapidly evolving technology landscape. The COVID-19 pandemic has further accelerated this shift, as businesses have had to adapt quickly to remote work arrangements, and cloud services have been essential for enabling remote work environments. 

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Market Challenges

• The managed services market in Saudi Arabia is experiencing significant growth, particularly in the areas of remote work and hybrid work environments. With the increasing adoption of collaboration tools and outsourcing, managed services providers (MSPs) are in high demand for managing IT infrastructure, ensuring continuous monitoring, and providing strategic solutions. This shift to cloud computing brings challenges in the form of cybersecurity, with managed security services becoming essential for data protection and threat detection. MSPs offer a range of services, including managed infrastructure, communications, mobility, and network security, available both on-premises and cloud-based. Large enterprises in IT and telecommunication, entertainment and media, and digital realm sectors are investing in managed services to enhance their cybersecurity posture and mitigate risks. As cyber threats evolve, MSPs provide proactive security measures, including vulnerability management, risk and compliance, detection and response, and firewall management. The subscription-based model allows businesses to access skilled workforces and the latest digital technologies, including artificial intelligence and automation tools, for hybrid security services and regulatory compliance. MSPs play a crucial role in digital transformation, ensuring service delivery agility, and optimizing cloud environments for industries such as banking, transportation, and e-commerce.
• In Saudi Arabia, managed services have gained popularity among businesses looking to outsource their IT infrastructure and support functions. While this arrangement offers numerous advantages, it also brings up concerns regarding data and privacy. When a business outsources IT functions to a third-party provider, they grant access to sensitive data and confidential information. If the provider lacks proper regulation or vetting, there is a risk of data breaches, hacks, or leaks, leading to reputational damage, financial losses, and potential legal action. Ensuring the managed services provider adheres to strict data security protocols and regulations is crucial for businesses to mitigate these risks.

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Segment Overview 

This managed services market in Saudi Arabia report extensively covers market segmentation by  

1. Type 
• 1.1 MDS
• 1.2 MNS
• 1.3 MSS
• 1.4 MMS
• 1.5 Others
2. Deployment 
• 2.1 Cloud
• 2.2 On premises
3. End-user 
• 3.1 Government
• 3.2 Financial services
• 3.3 Healthcare
• 3.4 Oil and gas
• 3.5 Others
4. Geography 
• 4.1 Middle East

1.1 MDS-  Managed Document Services (MDS) play a vital role in the managed services market in Saudi Arabia. MDS refer to the management of a company's document infrastructure and processes to boost efficiency, cut operational costs, and strengthen security. By outsourcing MDS, businesses can concentrate on their key competencies while experts handle document automation, reproduction, and management requirements. MDS offer significant cost savings through Managed Print Services (MPS), which enable companies to optimize their printer, copier, scanner, and related equipment usage, leading to substantial savings. Furthermore, deploying document management systems and automating processes result in reduced print and paper waste and increased document workflow efficiency. MDS also enhance document security by implementing secure print solutions, ensuring sensitive documents remain confidential in sectors like healthcare, legal, and finance. Additionally, MDS improve document access and sharing through cloud-based storage and remote collaboration, fostering a more productive workforce and enhancing the overall customer experience. These factors are expected to fuel the growth of the MDS segment in the managed services market in Saudi Arabia during the forecast period.

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Research Analysis

The Managed Services Market in Saudi Arabia is experiencing significant growth due to the increasing adoption of remote and hybrid work models. With the shift to digital transformation, businesses are seeking strategic solutions from Managed Services Providers (MSPs) to manage their IT infrastructure, ensure continuous monitoring, and protect their digital realm from cyber threats. Subscription-based models are becoming increasingly popular, allowing businesses to access advanced digital technologies, collaboration tools, and a skilled workforce without the need for large upfront investments. MSPs offer cybersecurity professionals to safeguard against data breaches, cyberattacks, and data protection concerns. The Internet of Things (IoT) and mobile technologies are expanding the attack surface, necessitating network security, cloud security, endpoint security, application security, and telecommunications. MSPs provide threat monitoring and incident response services to help businesses stay ahead of cyber threats and mitigate risks. Digital transformation brings opportunities but also challenges, such as data breaches and cyberattacks. MSPs offer strategic solutions to help businesses navigate these challenges and leverage digital technologies to enhance their operations and competitiveness.

Market Research Overview

The Managed Services Market in Saudi Arabia is witnessing significant growth due to the increasing adoption of remote work and hybrid work models, fueled by the widespread use of collaboration tools. Outsourcing IT infrastructure management to Managed Services Providers (MSPs) has become a strategic solution for businesses seeking to optimize their operations and focus on core competencies. In the digital realm, cloud computing is a major driver, with Managed Cloud Services offering continuous monitoring, subscription-based models, and proactive security measures. Cybersecurity is a top priority, with Managed Security Services providing solutions for vulnerability management, risk and compliance, threat detection, and incident response. MSPs offer a range of services, from Managed Infrastructure and Managed Communications to Managed Mobility and Managed Network. The market caters to various industries, including IT and telecommunication, entertainment and media, banking, transportation, and healthcare, among others. The Managed Services Market in Saudi Arabia is characterized by its agility, with MSPs delivering services on-premises and in the cloud, catering to the unique needs of large enterprises and SMEs. The market is also driven by the increasing importance of cybersecurity, with cyber threats and data breaches a major concern for businesses in the digital economy. MSPs provide technical security services, including firewall management, log management, and endpoint security, as well as development platforms and customized customer experiences. Strategic alliances and regulatory standards are also shaping the market, with industry-specific solutions and ITES becoming increasingly important. The Managed Services Market in Saudi Arabia is expected to continue growing, driven by the increasing adoption of digital technologies, the need for cybersecurity professionals, and the importance of proactive security measures in the face of cyberattacks and cybersecurity awareness. The market is also being shaped by the adoption of artificial intelligence and automation tools, hybrid security services, and the optimization of cloud environments.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• MDS
• MNS
• MSS
• MMS
• Others
• Deployment
• Cloud
• On Premises
• End-user
• Government
• Financial Services
• Healthcare
• Oil And Gas
• Others
• Geography
• Middle East

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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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SOURCE Technavio