Banking and securities companies in the Middle East and North Africa are on pace to spend approximately $13.1 billion USD on IT products and services in 2014, an increase of 2.4 percent over 2013 revenue of nearly $12.8 billion USD, according to Gartner, Inc. This forecast includes spending by banking organizations on internal IT services (including personnel), IT services, software, data center technologies, devices and telecom services.
Telecom services will be the largest segment in overall IT spending in the banking and securities market at $5.7 billion USD in 2014. This segment is forecast to increase 0.8 percent compared to 2013.
Software and IT services are the fastest growing segments with 9.7 and 8.4 percent increases in 2014, largely due to the expansion strategies of banks across the region and to modernization and replacement projects of the back-office that require much consulting and system integration. Outsourcing is also picking up, as it’s one of the fastest growing segments within IT services.
“Outsourcing is still very buoyant in this market which is discovering it. The Middle East and Northern Africa markets are not close to the maturity levels experienced in some mature markets, such as the US or UK, but it is growing,” said Vittorio D’Orazio, research director at Gartner. “Business process outsourcing (BPO) continues to have a solid growth at 12.7 percent in 2014, with increasing focus on horizontal BPO services.”
Further information on the banking and securities industry IT spending is available in the Gartner report: ‘Forecast: Enterprise IT Spending for the Banking and Securities Market, Worldwide, 2012-2018, 3Q14 Update’, available at http://www.gartner.com/document/2868717, or for all industries ‘Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 3Q14 Update’ at http://www.gartner.com/document/2882717.This vertical industries forecast provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.