The outsourcing and shared services industry in the Middle East continues to offer companies the abilities they couldn’t achieve on their own and support their growth. Technology has completely changed how companies operate in the past 40 years and has allowed companies to tap into economies of scale, pooling of resources and greater expertise. The rate of growth in the outsourcing and shared services industry in Saudi Arabia has been immense as companies work to expand in the region.
Saudi Arabia is the second most popular destination for outsourcing and shared service (OSS) providers in the MENA region. The Saudi OSS industry is the fastest growing in the region. Approximately a quarter of all SSCs are based in Saudi and the majority of outsourcing providers in the MENA region are too.
According to analysts, the OSS market was worth an estimated US $1 billion in 2018, with information technology outsourcing (US $807 million) making up the largest component. The market is experiencing rapid growth and key drivers for companies are cost reduction and the ability to focus on core competencies. These are major factors for most companies as they aim to increase their bottom line and improve their service.
Beyond cost, companies are also finding it critical to stay relevant and current. Outsourcing allows companies to stay up to date through improving performance speed and quality. It also allows for reduced capacity gaps, increased agility, access to intellectual capital, the ability to reach new markets and accelerated innovation across the company.
Through OSS, companies can access technologies that they might not have had the scale or budget for before such as cloud computing, robotic process automation, and artificial intelligence. The technology and services companies are able to access through OSS continually improve their products to consumers and help them reach the competitive advantage that many are seeking. Thus we can expect continual growth of the OSS market and world-class innovation in how companies operate.