Dubai: IT at the Source

Dubai: IT at the Source

Dubai is looking to combine its highly developed IT infrastructure and its open business environment into a new growth sector, as it seeks to become a leading services outsourcing centre.

A recent report issued by the International Data Corporation (IDC) stated that the IT spend in the UAE would be at least $1.8bn by 2013, a compound growth rate of 12.4% a year from the present level. With the IDC estimating that outsourcing in the Middle East will reach 23% of company IT spending by the end of 2010, it is clear there is potential for expansion in the sector, one that Dubai intends to tap into.

Outsourcing has gone far beyond the simple answering of phones and providing helpdesk support for companies, now encompassing IT operations and infrastructure management, server consolidation, internet services, data storage, retrieval and delivery, applications control and much more.

According to Navneet Tandon, the vice-president of enterprise resource planning and services at Dubai-based systems integrator Raqmiyat, there is an increasing reliance on automation by companies in the region. This in turn is opening up opportunities for outsourcing and managed IT services to enterprises across the Middle East and North Africa (MENA) zone.

“As the market proceeds towards natural maturation, we expect the IT services sector to pick up in 2010 as economic conditions improve,” Tandon told local media on May 19. “Enterprises are now more driven to invest in managed services, which allows them to focus on their core business, new product development and market expansion while leaving operational details to outside experts.”

Among the leading sectors to have their IT services managed are the banking, financial services, government, retail, airline and health care industries, says Tandon.