13 January 2008
Dubai: Outsourcing is a fast growing part of the IT services business in the UAE and the market will stem from the increased adoption of information systems outsourcing contracts and greater services investment by small and medium-sized businesses, Raqmiyat, a UAE-based systems integrator, said.
"The government, finance, manufacturing, transportation and telecoms industries remain key vertical markets for spending on IT services in the UAE while the central government was among the largest individual vertical, followed by the banking sector," Tapas Roy, chief operating officer of Raqmiyat, a primary IT company of the Al Ghurair Group, said.
He said IT services providers should streamline their operations and focus on alliances to take advantage of the technology.
With over 24 years of experience in the UAE banking sector, Raqmiat implemented cheque processing solutions on a nationwide basis for the UAE Central Bank and 25 commercial banks apart from other deals.
According to an IDC report, the country's IT services market is set for tremendous growth, increasing to $796.71 million (Dh2.92 billion) in 2010, an increase of 57 per cent from $507.81 million (Dh1.86 billion) in 2006, says a top official at Raqmiyat.
Key drivers
"The drivers of outsourcing make business sense in the UAE as they have done elsewhere in the world. Businesses in the UAE will increasingly outsource to remain competitive.
"Again, the traditional triggers of increasing costs, flexibility in the management of resources, user satisfaction and reduction in cycle times have contributed to this trend.
"Added to these are factors such as leveraging the provider's extensive investments in technology, methodologies and people, and reducing the burden of managing IT resources while retaining control of strategic decision making," Roy said.
The IDC report said spending on IT services was fuelled by large outsourcing contracts and continued strong investment in support and systems integration services.
The combined outsourcing categories showing growth include combined customisation, systems integration, outsourcing engagements.
"The increase in outsourcing is an inevitable development considering the rapid growth of businesses in the UAE," he said.
"With companies wanting to stay ahead of the competition, one of the most efficient ways to achieve this is to focus on quality internal resources and outsource non-core resources to capable partner at a time when efficiency in support services is a critical factor towards ensuring smooth operations."
By Naushad K. Cherrayil
Gulf News 2008. All rights reserved.
