New Research On: ICT Procurement Trends in the Middle East - Enterprise ICT investment plans to 2013

This report presents the findings from a survey of 137 Middle Eastern enterprises regarding their approach to Information and Communication Technology (ICT) procurement. The survey investigates the way that Middle Eastern enterprises like to purchase technology, as well as the major IT and business objectives influencing their IT investment strategies.

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Introduction and Landscape

Why was the report written?

To highlight the criteria on which Middle Eastern enterprises select their ICT providers as well as the roles which have influence while making ICT purchasing decisions.

What is the current market landscape and what is changing?

Middle Eastern enterprises' preference towards hosted deployment is expected to increase, albeit at a slower pace.

What are the key drivers behind recent market changes?

Preference towards hosted deployment is expected to increase, owing to various advantages such as flexibility, easier management, and cost savings.

What makes this report unique and essential to read?

Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their IT Procurement. Very few IT analyst houses will have interviewed 130+ ICT decision makers in the Middle Eastern market in H2 2012.

Key Features and Benefits

• Provides insights into Middle Eastern enterprises' preferred buying approaches.

• Comprehend the business objectives that Middle Eastern enterprises are looking to achieve through their IT investment strategy.

• Appreciate the IT objectives that Middle Eastern enterprises are looking to achieve through their IT investment strategy.

• Understand the factors that are influencing Middle Eastern enterprises' decision to select an ICT provider.

• Understand which organisational roles influence ICT purchasing decisions and signing off budgets.

Key Market Issues

• Kable believes that local resellers are preferred more than national resellers due to the fact that they are in a better position to offer support services to customers. Moreover, they generally have a good understanding of local markets and possess industry-specific expertise.

• Kable's survey confirms that, increasing customer satisfaction is the most important business objective for Middle Eastern enterprises. Investments in related technologies (such as customer relationship management) are therefore expected to be central to many IT initiatives.

• The objective of using IT to support revenue growth has been the highest rating of 3, with 32% of enterprises identifying this as their highest priority.

• Middle Eastern enterprises rate the CIO/IT department as the most influential authority when making ICT purchasing decisions, with the highest average rating of 3.4 on a scale of 1 to 4.

• According to Kable's survey, vendors with adequate industry-specific knowledge are preferred by enterprises in the Middle East.

Key Highlights

• Kable's survey reveals that the majority of Middle Eastern enterprises prefer purchasing technologies through a local reseller, followed by direct from suppliers and national resellers. While 63% of organisations favour buying technologies from a local reseller, 31% prefer to buy directly from suppliers.

• The survey shows that most Middle Eastern enterprises state that the motive behind their IT investments is to better demonstrate the value of IT to the business. With an average rating of 3 on a scale of 1 to 4, this is widely regarded as the most important IT objective influencing Middle Eastern enterprises' IT investment decisions.

• Kable's survey reveals that 45% of respondents presently have a reasonably standards-based ICT infrastructure (with most of the ICT environment being standards based).

• With respect to the authority over signing off budgets, Middle Eastern enterprises rate CFOs as the most influential authority, with an average rating of X on a scale of 1 to 4, closely followed by CEOs.

• Ability to provide leading-edge technology is also considered important when choosing an ICT vendor, with an average rating of X on a scale of 1 to 4.

Table of Content

1 Enterprise ICT investment trends
1.1 Introduction
1.2 Survey demographics
1.3 ICT budget changes
1.4 ICT investment priorities

2 ICT procurement trends
2.1 Introduction
2.2 Purchasing channels
2.3 Business objectives influencing IT investment strategy
2.4 IT objectives influencing IT investment strategy
2.5 ICT provider selection
2.6 Influencers
2.7 Complexity of the ICT infrastructure environment

3 Summary
3.1 Middle Eastern enterprises prefer onsite deployment of technologies and favour purchases from local resellers

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