IDC: Moroccan ICT market driven by banking, telecoms, infrastructure
The Moroccan IT services market is set to expand at a compound annual growth rate (CAGR) of 10.3% over the coming years to total $472.37 million in 2017, according to the latest insights from International Data Corporation (IDC). Drawing on the conclusions presented in its recently released 'Morocco IT Services Market 2013–2017 Forecast and 2012 Vendor Shares' report, the research firm expects this sustained growth to be primarily driven by large-scale banking, telecommunications, and government infrastructure projects.
IDC also reported that the country's IT services market is going through a shift as organizations are increasingly embracing new technologies to help them become more productive and agile. And since most of IT projects in Morocco are in the infrastructure buildout phase, IDC expects support and installation and integration services to grow faster than other services. "Government-initiated projects in education and healthcare, along with infrastructure modernization projects, will drive the demand for these services," says Azzedine Kabli, a senior research analyst for IT services and software at IDC Morocco. "In addition, as increasing numbers of new organizations establish operations in the country over the coming years, the demand for support and installation services is only likely to increase further."
The market's growth in recent years has been buoyed by large-scale infrastructure projects led by the government, and Kabli sees this trend continuing over the coming period: "The Moroccan government is actively seeking to build a knowledge economy by developing an ICT adoption strategy through a variety of government-sponsored projects across verticals, which will drive investments in various IT services areas in the near future."
Currently, the competitive landscape in Morocco varies by service line. In the recent past, the datacenter market has seen the entry of telcos offering hosting services, which is leading to increased competition with established local providers. "The increasing maturity of the Moroccan IT services market is reflected in the shares of the various foundation markets," continues Kabli. "The market share of basic services (e.g., deploy and support) is declining, while the market share of more advanced services, including outsourcing, managed, and datacenter services, is increasing. Therefore, a strong emphasis will be placed on cost-saving technologies and services, including virtualization, managed services, and hosting and cloud initiatives."
IDC expects end-user organizations to continue focusing their spending on areas and solutions that help reduce operating expenses and increase efficiency. The development of ultra-fast broadband connections will further drive innovation for competitive differentiation and value creation purposes via services such as hosting and software as a service (SaaS). IDC advises providers to develop or further strengthen their presence in new service areas by providing adapted solutions, getting close to their customers, and educating end users on the benefits of their solutions.