'UAE managed services mkt to grow 17% in 5 yrs'

November 29, 2012

By BPOWatch Bureau

BANGALORE: The managed services market in the United Arab Emirates is expected to grow at a compound annual growth rate of 17 percent over the next five years, says Frost & Sullivan.

Last year the country’s managed services market grew by 12.9 percent to reach $333 million. This growth is expected to accelerate in the next three years due to increasing demand from core growth industries such as retail, healthcare, and manufacturing. Also, the anticipated launch of cloud computing is likely to increase the uptake by small and medium businesses, which currently represent 34 percent of the total spending in the managed services market.

The country has been encouraging investments in the information and communication industry to decrease its dependency on oil and gas. The UAE is considered the largest ICT investment and development zone among the Gulf Cooperation Council as it has the advantages of competitive labor cost and quality infrastructure.