IT spending on Mena to rebound in 2020 after a 12 months of decline
10 March, 2020
Spending on it in the centre East and North Africa is set to grow at 2.4 % in 2020, after a decline of 2.8 % last year, regarding to consultancy company Gartner.
The full total IT spending in your community is likely to reach $160 billion (Dh587.2bn) this season, which is $3.75bn higher than in 2019. Expansion will be powered by non-oil monetary activity, it said.
“In 2019, organisations in Mena disinvested in info centre systems, units and communication offerings, which led to a decline of 2.8 % in the overall IT spending,” explained John Lovelock, research vice president at Gartner.
However, ongoing non-oil monetary initiatives in the UAE and Saudi Arabia - the region’s biggest economies - will increase IT spend in your community over the coming weeks.
“Non-oil economical initiatives such as for example Dubai Expo 2020, the Al Qiddiya entertainment, sports and arts sophisticated, the Red Ocean Project and the Neom living laboratory in Saudi Arabia are boosting business activity on Mena, that will heavily influence IT spending locally on 2020,” he said
The overall increase in IT spend may also be driven by digital transformation activities by government and private organisations, Gartner said.
As localized organisations continue steadily to invest more resources into digitalisation, technology consulting budgets may also increase, the report said.
The communications products and services and devices industry will see the major IT outlay among five sectors highlighted, totalling $134.89bn, based on the report. The rest of the $25.34bn will get towards upgrading info centres, enterprise program and IT services.
“This year, businesses in Mena are on pace to improve their IT budgets across all segments, with spending on enterprise software likely to achieve the best growth [12.3 per cent year-on-year], reaching $7.42bn,” said Mr Lovelock.
Spending on devices might grow at 3.6 %, carrying out a double-digit decline last year. IT products and services spending is expected to total $13.1bn, a great 8.4 % year-on-year increase.
IT spending levels found in Mena happen to be among the highest on earth, just after China, the emerging Asia-Pacific region and Latin America, Mr Lovelock explained.
Source: www.thenational.ae