Saudi Arabia IT spending grew 6.4% in 2005

While spending on IT services in Saudi Arabia grew a modest 6.4% in 2005 to more than $700 mln, demand for outsourcing took off, with spending shooting up by 56.5%. According to IDC, customization services were also hot, with investments jumping nearly 32% YTY. IDC believes total services spending will pick up again in 2006, growing by more than 13%, as high oil prices, rapid IT developments in the banking and telecommunications sectors, and growing adoption of outsourcing services generate momentum for IT services in general.