Qatar is gearing up to host a football world cup, Lebanon continues development of its capitalist economy and thriving tourism industry, and local companies across the Middle East are expanding globally. IT is sure to play a significant role in all of this.
Technology spending in the region is expected to grow at double the global average, and the IT industry will grow 3-4% in 2012. It’s estimated that investment in the technology sector will surpass US$65 billion (thenational.ae).
The Role of ERP Software
Switching from cumbersome legacy systems to more efficient ERP software has been a major factor contributing to the growth in IT, by improving management of technology areas and demonstrating the benefits of software services to Middle Eastern companies.Customers in the region spend over US$20 million on ERP software a year, and Microsoft Dynamics is the popular choice due to the variety of processes it can perform and its ease-of-use that make process simple to execute. The AX branch of the Dynamics family excels particularly in distribution, and this is one of the sectors where its positive influence has been made most evident.
Weighed down by inefficient legacy systems, Middle Eastern food distribution company Chef made the decision to switch to Microsoft Dynamics AX. It took only three months to implement it, and they soon found their business processes flowing smoothly due to the automation offered by the ERP software service.
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Their strategic decision-making was also more effective thanks to ready access of all relevant data. Monthly shipments have increased significantly for Chef, and a uniform Dynamics interface across all branches has replaced the confusing multitude of clunky legacy systems (www.levtechconsulting.com).
Toy distributor Simba Middle East is another organization whose supply chains have benefited from implementation of Dynamics AX. Thanks to six months of cooperation between Levtech Consulting, a supplier of ERP services to Middle Eastern clients, and Simba Middle East, they were able to map out important characteristics of the company’s operations, take these into account when optimizing the system, and acclimatize Simba employees to interfacing with Dynamics (www.ameinfo.com).
Half of the software firms in the UAE are hiring for managerial and professional positions, and Saudi Arabia's technology sector is amongst its highest-growth industries. Qatar seeks to fulfill the objectives of its National Vision 2030 plan, which aims to transform the country into an advanced society with a high standard of living, and incorporation of technology is a fundamental ingredient.
Search for Talent
The increasing adoption of technology across multinational and local firms is encouraging, though in many cases there is still a lack of skills to harness the new business tools (Indiatimes.com).Young people who have the skills are benefiting from the technological uplift, but those without are being left behind. Companies are focusing on development programs to eliminate this divide and expand the talent pool.
Microsoft, for example, has put part of their US$500 million investment towards training programs, partnering with non-profit organization Silatech to create MasrWorks which is focused on providing courses and mentorships (thenational.ae).
Technology hubs in Egypt, Jordan and Lebanon are well-situated, with easy access to Asia and Europe. Many economic powerhouses reside in the region, looking to utilize the benefits that ERP software has granted to organizations around the world.
It’s hoped that the appeal of these technology hubs and investment in training programs such as MasrWorks will ensure the Middle East receives the skills it needs to fuel its technological development.
Matthew FlaxAbout the Guest Author:
Written by Matthew Flax on behalf of Dynamics Careers, a niche job portal that advertises Microsoft Dynamics jobs, like AX developers, around the world.