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GCC IT Services Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

GCC IT Services Market driven by digital transformation, cloud, AI, and 5G, valued at USD 141 Bn.

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Region:Middle East

Author(s):Shubham

Product Code:KRAD2017

Pages:85

Published On:December 2025

About the Report

Base Year 2024

GCC IT Services Market Overview

  • The GCC IT Services Market is valued at USD 141 billion, based on a five-year historical analysis. Growth is driven by mounting digital transformation efforts, cloud migration, AI, cybersecurity, and IoT uptake across industries, bolstered by initiatives like smart-city projects and 5G deployment in both public and private sectors. Sovereign wealth-fund investments and cloud-first mandates in several Gulf countries further propel demand for IT services amid expanding enterprise digitalization.
  • Key players in this market include AWS, Microsoft, Oracle, telecom giants e&, Ooredoo, and stc, who drive managed service and cloud infrastructure expansion across the GCC. The region’s market leadership is anchored in Saudi Arabia and the UAE, which together account for the majority of investment due to their diversification strategies, hyperscale cloud roll-outs, and proactive public-sector digitization frameworks.
  • A notable policy shaping the landscape is the UAE’s Digital Government Strategy, which mandates core government workloads to migrate to the cloud and has catalyzed more than USD 1.36 billion in public-private cloud investments, reinforcing IT services demand in the public sector.
GCC IT Services Market Size

GCC IT Services Market Segmentation

By Type:The IT Services market is segmented into various types, including IT Consulting Services, Managed IT Services, Cloud Services, Cybersecurity Services, Software Development Services, System Integration Services, and Others. Among these, Cloud Services is currently dominating the market due to the increasing adoption of cloud technologies by businesses seeking scalability and flexibility. The demand for IT Consulting Services is also significant as organizations look for expert guidance in navigating digital transformation.

GCC IT Services Market segmentation by Type.

By End-User:The end-user segmentation includes Government, Healthcare, Financial Services, Retail, Telecommunications, Education, and Others. The Government sector is a significant contributor to the IT Services market, driven by initiatives aimed at enhancing public services through technology. The Financial Services sector also plays a crucial role, as banks and financial institutions increasingly invest in IT solutions to improve operational efficiency and customer experience.

GCC IT Services Market segmentation by End-User.

GCC IT Services Market Competitive Landscape

The GCC IT Services Market is characterized by a dynamic mix of regional and international players. Leading participants such as IBM, Accenture, Oracle, SAP, Microsoft, Cisco Systems, HPE (Hewlett Packard Enterprise), Dell Technologies, Infosys, Wipro, TCS (Tata Consultancy Services), Fujitsu, Atos, Capgemini, and NTT Data contribute to innovation, geographic expansion, and service delivery in this space.

IBM

1911

Armonk, New York, USA

–

–

–

–

–

–

Accenture

1989

Dublin, Ireland

–

–

–

–

–

–

Oracle

1977

Redwood City, California, USA

–

–

–

–

–

–

SAP

1972

Walldorf, Germany

–

–

–

–

–

–

Microsoft

1975

Redmond, Washington, USA

–

–

–

–

–

–

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate

Customer Retention Rate

Average Deal Size

Service Delivery Efficiency

Market Penetration Rate

GCC IT Services Market Industry Analysis

Growth Drivers

  • Widespread 5G and Digital Infrastructure Coverage:The GCC region is witnessing a significant expansion in 5G network coverage, projected to exceed 90% in future. This robust digital backbone is essential for the growth of IT services, including cloud computing, artificial intelligence, and managed services. The enhanced connectivity facilitates seamless digital transformation initiatives across various sectors, driving demand for innovative IT solutions and services ((https://www.worldbank.org/en/news/press-release/2025/12/04/gcc-economies-demonstrate-resilience-advance-diversification-and-accelerate-digital-transformation?utm_source=openai)).
  • Smart-City and Digital Transformation Investments:Major investments in smart city initiatives are reshaping the GCC IT landscape. For instance, Saudi Arabia has allocated USD 12.4 billion for smart infrastructure, while the UAE has committed USD 4.2 billion under its “Digital Government Strategy in future.” These investments are expected to enhance digital services and infrastructure, creating a fertile ground for IT service providers to thrive and innovate ((https://www.prnewswire.com/news-releases/gcc-smart-cities--digital-transformation-market-surges-toward-usd-907-12-billion-by-2032-as-ai-5g-and-megacity-investments-accelerate-regional-innovation--according-to-datam-intelligence-302620135.html?utm_source=openai)).
  • Large IT Services Market Base:The GCC IT services market is projected to be valued at approximately USD 48.3 billion in future, representing a substantial portion of the overall ICT market, which is expected to reach USD 141.32 billion in future. This strong foundational base supports sustained growth in IT services, driven by increasing digitalization and the demand for advanced technological solutions across various industries ((https://www.mordorintelligence.com/industry-reports/gcc-ict-market?utm_source=openai)).

Market Challenges

  • Skill and Cyber-Skills Shortages:The GCC region faces a significant challenge due to a shortage of skilled IT professionals, particularly in cybersecurity. Reports indicate a chronic skills gap, which hampers the scalability of AI and other advanced technologies. This shortage limits the ability of organizations to implement robust IT solutions and poses risks to data security and operational efficiency ((https://www.mordorintelligence.com/industry-reports/gcc-ict-market?utm_source=openai)).
  • High Energy Demand for Data Centers:The rapid growth of data centers in the GCC is leading to increased energy consumption, necessitating significant investments in cooling infrastructure. Given the region's water scarcity challenges, the demand for advanced cooling systems is critical. This situation poses a challenge for IT service providers, as they must balance operational efficiency with sustainability ((https://www.mordorintelligence.com/industry-reports/gcc-ict-market?utm_source=openai)).

GCC IT Services Market Future Outlook

The future of the GCC IT services market appears promising, driven by the increasing adoption of artificial intelligence, cloud computing, and smart city initiatives. With AI projected to account for USD 42.2 billion of the digital transformation market in future, and cloud solutions expected to generate USD 24.7 billion, the region is poised for significant technological advancements. Additionally, the ongoing government investments in digital infrastructure will further enhance the market landscape, fostering innovation and growth in IT services.

Market Opportunities

  • Scaling SaaS Solutions:The Software-as-a-Service (SaaS) market in the GCC is currently valued at USD 1.5 billion in future, with a clear trajectory for growth. This expansion presents a significant opportunity for IT service providers to develop and offer scalable solutions that meet the evolving needs of businesses across various sectors ((https://www.blueweaveconsulting.com/press-release/gcc-software-as-a-service-saas-market-zooming-3-3x-to-surpass-usd-4-9-billion-by-2031?utm_source=openai)).
  • Infrastructure-as-a-Service (IaaS) Growth:The GCC IaaS market is projected to reach USD 654.31 million in future, up from USD 574.56 million in future. This growth reflects the increasing demand for flexible and scalable infrastructure solutions, providing IT service providers with opportunities to offer innovative cloud-based services that cater to diverse business needs ((https://www.marketresearchfuture.com/reports/gcc-infrastructure-as-a-service-market-63779?utm_source=openai)).

Scope of the Report

SegmentSub-Segments
By Type

IT Consulting Services

Managed IT Services

Cloud Services

Cybersecurity Services

Software Development Services

System Integration Services

Others

By End-User

Government

Healthcare

Financial Services

Retail

Telecommunications

Education

Others

By Industry Vertical

Banking, Financial Services, and Insurance (BFSI)

Manufacturing

Energy and Utilities

Transportation and Logistics

Media and Entertainment

Others

By Service Model

Infrastructure as a Service (IaaS)

Platform as a Service (PaaS)

Software as a Service (SaaS)

Others

By Deployment Mode

On-Premises

Cloud-Based

Hybrid

Others

By Geographic Presence

UAE

Saudi Arabia

Qatar

Kuwait

Oman

Bahrain

Others

By Customer Size

Large Enterprises

Medium Enterprises

Small Enterprises

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Communications and Information Technology, Telecommunications Regulatory Authority)

Telecommunications Service Providers

Cloud Service Providers

Cybersecurity Firms

IT Infrastructure Providers

Large Enterprises and Corporations

Public Sector Organizations

Players Mentioned in the Report:

IBM

Accenture

Oracle

SAP

Microsoft

Cisco Systems

HPE (Hewlett Packard Enterprise)

Dell Technologies

Infosys

Wipro

TCS (Tata Consultancy Services)

Fujitsu

Atos

Capgemini

NTT Data

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach

2. GCC IT Services Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 GCC IT Services Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape

3. GCC IT Services Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Digital Transformation Initiatives
3.1.2 Rising Demand for Cloud Computing Services
3.1.3 Growing Cybersecurity Concerns
3.1.4 Expansion of E-Government Services

3.2 Market Challenges

3.2.1 High Competition Among Service Providers
3.2.2 Shortage of Skilled IT Professionals
3.2.3 Rapid Technological Changes
3.2.4 Regulatory Compliance Issues

3.3 Market Opportunities

3.3.1 Adoption of Artificial Intelligence and Machine Learning
3.3.2 Growth in Internet of Things (IoT) Solutions
3.3.3 Increased Investment in Smart City Projects
3.3.4 Expansion of Managed IT Services

3.4 Market Trends

3.4.1 Shift Towards Remote Work Solutions
3.4.2 Emphasis on Data Analytics and Business Intelligence
3.4.3 Rise of Subscription-Based IT Services
3.4.4 Focus on Sustainable IT Practices

3.5 Government Regulation

3.5.1 Data Protection and Privacy Laws
3.5.2 Cybersecurity Regulations
3.5.3 E-Government Frameworks
3.5.4 IT Service Provider Licensing Requirements

4. SWOT Analysis

5. Stakeholder Analysis

6. Porter's Five Forces Analysis

7. GCC IT Services Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price

8. GCC IT Services Market Segmentation

8.1 By Type

8.1.1 IT Consulting Services
8.1.2 Managed IT Services
8.1.3 Cloud Services
8.1.4 Cybersecurity Services
8.1.5 Software Development Services
8.1.6 System Integration Services
8.1.7 Others

8.2 By End-User

8.2.1 Government
8.2.2 Healthcare
8.2.3 Financial Services
8.2.4 Retail
8.2.5 Telecommunications
8.2.6 Education
8.2.7 Others

8.3 By Industry Vertical

8.3.1 Banking, Financial Services, and Insurance (BFSI)
8.3.2 Manufacturing
8.3.3 Energy and Utilities
8.3.4 Transportation and Logistics
8.3.5 Media and Entertainment
8.3.6 Others

8.4 By Service Model

8.4.1 Infrastructure as a Service (IaaS)
8.4.2 Platform as a Service (PaaS)
8.4.3 Software as a Service (SaaS)
8.4.4 Others

8.5 By Deployment Mode

8.5.1 On-Premises
8.5.2 Cloud-Based
8.5.3 Hybrid
8.5.4 Others

8.6 By Geographic Presence

8.6.1 UAE
8.6.2 Saudi Arabia
8.6.3 Qatar
8.6.4 Kuwait
8.6.5 Oman
8.6.6 Bahrain
8.6.7 Others

8.7 By Customer Size

8.7.1 Large Enterprises
8.7.2 Medium Enterprises
8.7.3 Small Enterprises
8.7.4 Others

9. GCC IT Services Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate
9.2.4 Customer Retention Rate
9.2.5 Average Deal Size
9.2.6 Service Delivery Efficiency
9.2.7 Market Penetration Rate
9.2.8 Pricing Strategy
9.2.9 Customer Satisfaction Score
9.2.10 Innovation Rate

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 IBM
9.5.2 Accenture
9.5.3 Oracle
9.5.4 SAP
9.5.5 Microsoft
9.5.6 Cisco Systems
9.5.7 HPE (Hewlett Packard Enterprise)
9.5.8 Dell Technologies
9.5.9 Infosys
9.5.10 Wipro
9.5.11 TCS (Tata Consultancy Services)
9.5.12 Fujitsu
9.5.13 Atos
9.5.14 Capgemini
9.5.15 NTT Data

10. GCC IT Services Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Budget Allocation Trends
10.1.2 Decision-Making Processes
10.1.3 Preferred Service Providers
10.1.4 Contracting Practices

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 IT Infrastructure Investments
10.2.2 Energy Management Solutions
10.2.3 Cloud Migration Expenditures
10.2.4 Cybersecurity Investments

10.3 Pain Point Analysis by End-User Category

10.3.1 IT Budget Constraints
10.3.2 Integration Challenges
10.3.3 Data Security Concerns
10.3.4 Skill Gaps in IT Teams

10.4 User Readiness for Adoption

10.4.1 Technology Adoption Rates
10.4.2 Training and Support Needs
10.4.3 Change Management Strategies
10.4.4 Feedback Mechanisms

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Performance Metrics
10.5.2 User Satisfaction Levels
10.5.3 Scalability of Solutions
10.5.4 Future Investment Plans

11. GCC IT Services Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price

Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development

2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-Ups

4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands

5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments

6. Customer Relationship

6.1 Loyalty Programs

6.2 After-Sales Service

7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains

8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup

9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model

11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines

12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships

13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-Term Sustainability

14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets

15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking
Disclaimer
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Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from regional IT associations and market research firms
  • Review of government publications and economic reports related to the GCC IT sector
  • Examination of white papers and case studies from leading IT service providers in the GCC

Primary Research

  • Interviews with IT decision-makers in key sectors such as finance, healthcare, and government
  • Surveys targeting IT service providers to gather insights on service offerings and market trends
  • Focus groups with end-users to understand their experiences and expectations from IT services

Validation & Triangulation

  • Cross-validation of findings through multiple data sources including trade publications and expert opinions
  • Triangulation of market data with insights from industry conferences and seminars
  • Sanity checks through expert panel reviews comprising industry veterans and analysts

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total IT spending in the GCC region based on macroeconomic indicators
  • Segmentation of the market by service type, including cloud computing, cybersecurity, and IT consulting
  • Incorporation of growth rates from historical data and projected trends in digital transformation

Bottom-up Modeling

  • Collection of revenue data from leading IT service firms operating in the GCC
  • Estimation of service demand based on firm-level project pipelines and client contracts
  • Volume x pricing analysis for various IT services to derive market size estimates

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating factors such as GDP growth, technology adoption rates, and regulatory changes
  • Scenario modeling based on potential shifts in market dynamics due to geopolitical factors and economic diversification efforts
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Cloud Computing Services150IT Managers, Cloud Architects
Cybersecurity Solutions100Chief Information Security Officers, IT Security Analysts
IT Consulting Services80Consultants, Project Managers
Managed IT Services70Operations Managers, Service Delivery Managers
Software Development Services90Software Engineers, Product Managers

Frequently Asked Questions

What is the current value of the GCC IT Services Market?

The GCC IT Services Market is valued at approximately USD 141 billion, driven by digital transformation, cloud migration, AI, cybersecurity, and IoT adoption across various industries, supported by government initiatives and investments in technology infrastructure.

What are the key growth drivers of the GCC IT Services Market?

Which sectors are the largest end-users of IT services in the GCC?

What types of IT services are most in demand in the GCC?

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