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GCC is currently home to one of the fastest growing populations in the world.
- The population is forecasted to grow at a rate of 2.1% in the next 5 years to reach an estimate of 42 million by 2014.
- Meanwhile, it is estimated that about 40% of the population in the GCC countries are expatriates. As a result, the population is predominately young, and technology savvy.
Age distribution in the Middle East, especially in the GCC countries is more heavily skewed towards the youth sector. On an average 60% of the population in the GCC countries is below 35 years old
Telecommunication services are currently under heavy development in the MENA region:
- Broadband household penetration levels in the MENA region will increase from 18.5% in 2010 to 38.5% in 2014.
- Internet household penetration levels in the MENA region will increase from 39.7%% in 2010 to 64.3% in 2014.
With a young population and increase in broadband penetration in the MENA region, development of the ICT industry, leveraging techno savvy young customer base and connected infrastructure migration will be at full force in the coming years.
The outsourcing industry is recognized as one of the world’s most dynamic sectors, with growth levels that continue to outstrip many other previously dominant sectors. It has proved to be more resilient than the other sectors in part due to the fact that one of the main driving forces for its initiation being the strive to achieve operational efficiency and cost effective business practices.
The sizing of the global outsourcing market from 2004 to 2016 is presented in the following graph.
Source: Frost and Sullivan, 2011
The market is expected to be worth an estimated US$479.3 billion in 2016 with growth levels of approximately 10% by the end of the forecast period. The development and increased deployment of managed services at both the enterprise and SMME levels is expected to make a significant contribution to the growth of the market moving forward.
Within the MENA Region the Outsourcing industry is expected to growth at a compound annual growth rate of approximately 8% throughout the forecast period. The size of the Outsourcing market in the MENA Region with projects up to 2016 is represented in the following graph.
Source: Frost and Sullivan, 2011
The UAE market is expected to grow at a CAGR of approximately 9% during the forecast period. The industry’s steady growth trend is attributed to the organic nature of business growth that is expected in the country.
Source: Frost and Sullivan, 2011
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