From crisis to vision: Rethinking managed services in the Middle East

In the UK and in Australia, where I led complex remediation efforts across financial services, managed services were a response to failure – used to stabilise operations, restore trust and demonstrate accountability at scale. 

But in the Middle East, the narrative is different. Managed services in this region aren’t emerging as a reactive measure. Instead, they are considered proactive strategies - designed as a core infrastructure to support long-term success and national transformation. 

From Saudi Arabia’s Vision 2030 to We the UAE 2031, governments across the region are charting futures defined by diversification, digitisation and reform. The sheer scale of this transformation is evident in the projected growth of the Middle East’s digital transformation market, which is set to jump from an estimated US$50.26bn in 2025 to nearly US$150bn by 2030.¹

In the region, managed services are regarded as a strategic enabler of this ambition, accelerating delivery of complex projects, building institutional capacity and sustaining impact at scale across public and private sectors. Deployed widely across functions such as finance operations, procurement, compliance, HR, cloud, and cybersecurity, they are helping build long-term, resilient capabilities that support national transformation goals.

In 2025, the global managed services market is projected to generate US$25.67 billion in revenue, with the United Arab Emirates alone expected to contribute US$79.77 million, reflecting growing regional demand for outsourced, scalable operational solutions.²

This isn’t about outsourcing. It’s about building capability.

Managed services, once seen as shifting repetitive back-office tasks, have evolved. This marks a fundamental shift - from simply outsourcing work to embedding strategic capabilities at the core of operations. It’s no longer about offshoring; it’s about building integrated, high-impact solutions that drive long-term value.

Through partnerships and strategic alliances, we can now support organisations in the region with the necessary industry and technological expertise, playing a pivotal role in structuring more complex services such as transformation management, infrastructure, digital, corporate services, tax, legal, financial crime, and risk and controls. Our delivery centres in places like Al Khobar and Riyadh in Saudi Arabia, Amman in Jordan and Cairo in Egypt are a step in that direction, aligning with the region’s growing transformation agenda. 

As business in the region grapple with the megatrends of AI disruption and climate change, along with geopolitical and macroeconomic instability, they are seeking both subject matter expertise, technology solutions and operational excellence to deliver sustained outcomes. 

Regional AI investment is projected to rise from US$4.5bn in 2024 to US$14.6bn by 2028,3 and 88% of GCC CEOs are already adopting GenAI.4 This indicates that organisations in the Middle East are ready for next-generation managed services. Enabled by automation, real-time data, and integrated platforms, these services are turning strategic ambition into scalable, intelligent delivery models that accelerate outcomes.

So, the question becomes: 
If the context is different, shouldn't the operating model be different too?

In many regions, managed services have evolved out of compliance needs and cost control. 
But in the Middle East, we have an opportunity to reimagine managed services entirely as instruments of national capacity-building.

What if managed services became the operational backbone of transformation? 

Consider the possibilities:

• They become part of government-wide corporate services - delivering consistency, transparency, and efficiency across ministries and national institutions. We are already seeing this in Saudi Arabia where managed services are enabling innovation, speed and resilience. 

• They ensure technology-enabled delivery - built on AI, automation and real-time data to create integrated, intelligent systems that work seamlessly across platforms and providers.

• They build financial sector resilience - helping institutions align with global standards, manage emerging risks, and support sustainable economic development.

In a region defined by bold reform agendas, whether it's infrastructure, institutions or mega-events, the services that underpin progress can no longer be an afterthought. They must be intentionally designed to deliver at the scale and ambition of national transformation.

So, here’s what every country needs to ask itself: 

What if managed services weren’t just a lever for cost, but a lever for nation-building?

What if delivery itself became a sovereign capability - as essential as energy, water, or security?

What if the next domain of statecraft wasn’t land, oil or defence, but the systems and services that make delivery possible.  
And what if the countries that lead the future aren’t the ones with the most resources, but the ones that can deliver the most - faster, smarter, and at scale?

At the heart of this shift, world-class managed services can be the critical enabler - turning ambition into action, and vision into lasting impact.

Sources:

_{^{1- https://www.mordorintelligence.com/industry-reports/middle-east-digital-transformation-market
2- https://www.statista.com/outlook/tmo/cybersecurity/security-services/managed-services/united-arab-emirates
3- https://www.communicationstoday.co.in/ai-spending-in-meta-to-soar-from-4-5b-in-2024-to-14-6b-by-2028/
4- https://www.pwc.com/m1/en/media-centre/2025/pwc-28th-annual-ceo-survey-middle-east-findings.html}}