Gartner Says Healthcare Providers in Middle East and North Africa to Spend US $3 Billion on IT in 2014

Healthcare providers in the Middle East and North Africa will spend US $3 billion on IT products and services in 2014, an increase of 1.3 percent over 2013 revenues, according to Gartner, Inc. This forecast includes spending by healthcare providers (includes hospitals and hospital systems, as well as ambulatory service and physicians’ practices) on internal services, software, IT services, data center, devices & telecom services.

Telecom services, which include fixed and mobile telecom services, will remain the largest overall spending category throughout the forecast period within the healthcare providers sector with an expected market size of US $1.3 billion in 2014.

Software will increase 7.8 percent in 2014 to reach US $382 million. Internal services will grow 7.4 percent in 2014 to reach US $473 million. Internal services refer to salaries and benefits paid to the information services staff of an organization. The information services staff includes all company employees that plan, develop, implement and maintain information systems. IT services will grow 6.3 percent in 2014 to reach US $379 million, up from US $356 million in 2013. IT services spending will be led by growth in business process outsourcing (BPO), software support and consulting.

“The Saudi Arabian government is moving towards a growth plan for its healthcare apparatus underpinned by investments in technology. We expect spending across the hospitals, ambulatory care and the setting up of its communication backbone,” said Anurag Gupta, research director at Gartner. “UAE will continue to evolve its focus on leveraging its past investments on transactional healthcare systems. Turkey is also closely examining its healthcare technology landscape, and we expect further developments within the public healthcare sector. Private healthcare will continue to be a major growth area across the region.”

Further information on Health care Providers sector IT spending is available in the Gartner report: Forecast: Enterprise IT spending for the Healthcare Providers Market, Worldwide, 2012-2018, 3Q14 Update. The report is available on Gartner’s website at http://www.gartner.com/document/2872317. The forecasts provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies.

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