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Abdulla Hashim, vice-president for enterprise solutions at Etisalat, yesterday said that companies would be able to focus on their most important business needs if they let a competent external team to handle their other IT services requirements.
"By outsourcing part of their non-core IT infrastructure, organisations can concentrate on their core business needs, rather than dedicating critical resources to meet ICT demands," he said.
He was addressing the ICT Infrastructure Management Forum, which was organised by Etisalat and its partners to impress upon the clients the advantages of embracing managed IT services and discuss the future of infrastructure management.
Managed services contract focuses only on a portion of the clients' IT infrastructure and rarely involves the transfer of assets and staff. This usually lasts only up to three years, as against the lengthy traditional IT outsourcing contract.
Hashim said the ICT environment has become too complex that IT managers are grappling not only with core IT infrastructure, but also non-core ones. These are devices, networks, billing management, security risks, hardware support and disaster recovery, among other things.
"We understand these concerns and, from our interactions with our customers, we see that there is a role for infrastructure outsourcing and managed services to play a significant role in the UAE," he added.
He said the industry has reflected this trend, with the International Data Corporation (IDC) reporting that IT outsourcing accounted for 16 per cent of the UAE IT services market in 2006 from eight per cent in 2004.
IDC, a global provider of market intelligence and advisory services for the IT industry, also said that IT outsourcing in the Gulf region had tripled to Dh298.4 million ($81.27 million) in 2006 from Dh101.3 million ($27.58 million) in 2004.
"In line with global trends, over the last two years we have seen the services market within the Gulf slowly evolve as the demand for more sophisticated and value-added services increases," IDC said in a white paper, dated March 2008, sponsored by Etisalat.
Entitled "Optimising Enterprise Infrastructure Management Through Managed Services — A Gulf Perspective", the paper said the UAE has spearheaded the trend in managed services but added that Saudi Arabia as fast catching up.
It stressed that Etisalat needs to step up its branding and expansion of service portfolios on managed services until next year because of increased demand and a stiff competition.
"In order to succeed in this region, Etisalat must be able to demonstrate both the technological and cost-saving benefits attached to adopting a managed service model of delivery," it said. "Total cost of ownership and return on investment must be understood and communicated."
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