Dubai: Revenues from the operational management of external outsourcing and cloud services in the UAE are expected to reach Dh3.58 billion this year, an increase of 12 per cent on the Dh3.2 billion recorded last year, a research report revealed.
The latest statistics by International Data Corporation (IDC) show that revenues are expected to touch Dh4.38 billion in 2020, with a compound annual growth rate of 11.2 per cent.
“For years now, the world has been moving away from traditional outsourcing, shared service models and business systems management. The UAE is now globally recognised as a thriving hub for business, an achievement which is aided by its rapid technical evolution and the ready availability of top talent,” Ammar Al Malek, executive director of Dubai Internet City (DIC) and Dubai Outsource City (DOC), said in a statement.
He said the country’s strategic location — at the crossroads between Europe, Africa and Asia — enables our business partners to meet the requirements of these diverse markets.
The report notes that key customers of the local outsourcing market are from the banking, financial services, transport, communications, media, retail, and support industries.
In terms of competencies, call centre services account for the largest share at 65 per cent and are set to dominate the market for years to come. Human resources rank second with 14 per cent, followed by finance, accounting, and employment services that are slated for moderate growth, as companies continue to prefer handling these functions internally.
Furthermore, IDC report points out that spending on local business outsourcing has grown by 11.7 per cent — from Dh1.19 billion in 2016 to Dh1.33 billion in 2017. The number is expected to hit Dh1.48 billion in 2018 and be valued at Dh2 billion by 2021.
Al Malek said that the outsourcing sector in the UAE is maturing, driven by continuous improvement in the quality of services, technological developments, and the student part-time employment regulation by the Dubai Creative Clusters Authority which provides the opportunity for university students to work part-time.
“The conducive business and employment environment has brought immense benefits to segments that depend on temporary workers, including call centres and shared services — the backbone of the outsourcing industry,” he said.