Increasing Maturity and Changing Market Dynamics Set to Spur Significant Growth in Moroccan IT Services Spending
23 Jun 2014
With large-scale government, banking, telecommunications, Utilities and energy infrastructure projects continuing to spur the market, IT services spending in Morocco will break the $550 million mark by the end of 2018, according to the latest five-year forecast released today by International Data Corporation (IDC). The global research and advisory firm expects the country's IT services market to grow 9.3% year on year in 2014, but expand at a stronger compound annual growth rate (CAGR) of 12.0% over the coming years to total $550.53 million in 2018.
IDC believes initiatives that support the alignment of IT with overarching business goals will continue to be a key driver of IT services spending in Morocco, particularly among enterprises in the highly competitive telecommunications and finance sectors. The Moroccan government, meanwhile, is expected to continue upgrading public infrastructure, and will remain committed to e-government initiatives that are aimed at improving the quality of public services. From a demand-side perspective, improving current IT infrastructure will be prioritized over ground-up buildouts of new IT infrastructure. This will drive an increase in virtualization, infrastructure consolidation, and datacenter modernization projects.
"Many organizations across key sectors such as government, healthcare, transportation, and manufacturing will continue to modernize their IT infrastructure and expand their services catalogs to support their growing operations," says Azzedine Kabli, a senior research analyst for IT services and software at IDC Morocco. "We also expect the outsourcing services market to grow on the back of increased supply from local players, specifically telcos and third-party datacenter providers that are bringing more capacity online, and there will be considerable demand for business continuity and disaster recovery services. Despite the positive outlook, the Moroccan IT services market will continue to encounter challenges around the lack of qualified IT skills, long government procurement cycles, tightening IT budgets, and complications in project management."
Currently, the Moroccan ICT market is growing at two-speeds - mature Banking and Telecommunication verticals are investing in advanced technologies, where other less mature but growing verticals are in the middle of their infrastructure build out journey. Project-based services remained the largest macromarket in 2013, representing almost half of the overall IT services spend for that year. This was largely driven by investments in systems integration and network consulting and integration services. The support and training macromarket accounted for the second-largest share of the IT services market last year, driven primarily by hardware support and installation services.
About the Research
IDC's 'Morocco IT Services 2013 Market Size and 2014-2018 Forecast' provides a forecast for IT services market spending in Morocco for the period 2014–2018. The report also includes commentary on market drivers and forecast assumptions. For more information about this study, please contact Azzedine Kabli at email@example.com or on +212 522 36 98 98.
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