Public sector IT spend in Gulf set for exponential growth

DUBAI — Rapidly growing populations and windfall profits from the energy sector have meant that public sectors in the Gulf States are now better positioned than ever to invest in world-class IT solutions. Education, healthcare, and e-government projects, among others, are set for increases in IT expenditure over the next three years, according to industry sources, said a Press statment on Monday issued by SAP Middle East and Africa .

By A Staff Reporter

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Published: Tue 12 Aug 2008, 11:30 PM

Last updated: Sun 5 Apr 2015, 11:52 AM

One regional source points to a single Ministry of Health project in Saudi Arabia calling for bids in excess of $130 million IT solution requirement. "The Gulf's public service organisations are in an ideal position to invest wisely for the long-term needs of their citizens, and yet they face similar challenges to their private sector counterparts - cost pressures, increased public scrutiny, and rapid changes in policies and regulations," said Sergio Maccotta, Managing Director, SAP Middle East and Africa, a global leader in the provision of IT solutions for governments and other large enterprises.

Maccotta added: "These challenges can be simplified by economies of scale resulting from IT-enabled shared services across a wide range of government departments. For example, entire Gulf cities can run on one platform, with industry-specific solutions for each of the government's respective departments."

Shared services is a collaborative strategy in which common operational functions are consolidated and standardised in a single organisational unit that can deliver the same services to different departments within a government enterprise — enabling efficiency and cost savings, as well as improving services for stakeholders.

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