Morocco Set for Double-Digit IT Services Growth as Increasing Enterprise Maturity Spurs Investment

The Moroccan IT services market is expected to reach a total value of almost $350 million for the year 2014, according to the latest forecasts released today by International Data Corporation (IDC). That would represent a 10.4% increase on the $316.25 million generated in 2013, with this strong growth continuing to be fueled by investments in hardware support and installation, systems integration, and software support and installation.

IDC believes initiatives that support the alignment of IT with overarching business goals will continue to be a key driver of IT services spending in Morocco, particularly among enterprises in the highly competitive telecommunications and finance sectors. The Moroccan government, meanwhile, will continue upgrading public infrastructure and remain committed to egovernment initiatives that are aimed at improving the quality of public services. From a demand-side perspective, the improvement of current IT infrastructure continues to be prioritized over ground-up buildouts of new IT infrastructure. This will lead to a proliferation of virtualization, infrastructure consolidation, and datacenter modernization projects.

“Many organizations across key sectors such as government, healthcare, transportation, and manufacturing are modernizing their IT infrastructure and expanding their services catalogs to support growing operations,” says Azzedine Kabli, a senior research analyst for IT services and software at IDC Morocco. “We also expect the outsourcing services market to grow due to the increasing acceptance and adoption of managed services, hosting services, and datacenter services. Demand for outsourcing services in Morocco typically arises from large and very large businesses, particularly those in the telecommunications vertical and public sector, but demand is also growing among SMBs as they often struggle to manage complex IT elements in-house.”

IDC’s forecast shows that IT services spending in Morocco will exhibit consistent double-digit growth over the coming five years, expanding at a compound annual growth rate (CAGR) of 11.7% to total $550.53 million in 2018. And in addition to initiatives aimed at aligning IT with lines of business and various government programs focused on infrastructure and public services, IDC expects end-user organizations to continue to invest in areas and solutions that optimize operating expenses and increase efficiency via services such as hosting and software as a service (SaaS). IDC also expects services providers to 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.

“The hardware and software resale markets in Morocco are highly competitive and offer low margins,” continues Kabli. “As such, IT services providers are focusing on accommodating these ICT needs in as cost-effective manner as possible. They are increasingly looking to achieve this through joint go-to-market initiatives with telcos and government agencies that are planning to launch their own commercial and community cloud services, as interest in the concept is steadily rising in the country among end-user organizations of all sizes.”

About the Research

The IDC report ’Morocco IT Services Market 2014–2018 Forecast and 2013 Analysis’ (IDC #CEMA21570) provides a detailed overview of IT services spending trends and forecasts for 13 foundation markets and 18 vertical markets in Morocco. The study includes an overview of key industry developments, industry challenges, IT drivers and trends, and tables detailing IT spending by foundation market for the period 2014–2018. The analysis is based on continuous research of both IT services supply and demand through surveys, technology assessments, country demographics, and economic data.