Region’s Public Sector IT Spend Set for Exponential Growth

August 11, 2008 by SAP News 0

Surging Energy Revenues in Gulf States Mean Greater Investments in Education, Healthcare, and E-Government; Saudi Spending Alone Believed to be in USD Hundreds of Millions

Dubai, United Arab EmiratesRapidly growing populations and windfall profits from the energy sector have meant that public sectors in the Gulf States are now better positioned than ever to invest in world-class IT solutions.

Education, healthcare, and e-government projects, among others, are set for increases in IT expenditure over the next three years, according to industry sources.

One regional source points to a single Ministry of Health project in Saudi Arabia calling for bids in excess of USD 130 million IT solution requirement.

“The Gulf’s public service organizations are in an ideal position to invest wisely for the long-term needs of their citizens, and yet they face similar challenges to their private sector counterparts – cost pressures, increased public scrutiny, and rapid changes in policies and regulations,” said Sergio Maccotta, Managing Director, SAP Middle East and Africa, a global leader in the provision of IT solutions for governments and other large enterprises.

Maccotta added: “These challenges can be simplified by economies of scale resulting from IT-enabled shared services across a wide range of government departments. For example, entire Gulf cities can run on one platform, with industry-specific solutions for each of the government’s respective departments.”

Shared services is a collaborative strategy in which common operational functions are consolidated and standardized in a single organizational unit that can deliver the same services to different departments within a government enterprise – enabling efficiency and cost savings, as well as improving services for stakeholders.

Conceived in the late 1980s in the private sector, the shared services model has emerged as the model-of-choice for businesses interested in economies of scale.

SAP’s Public Sector solutions are designed to help all levels of government maximize public value, enabling them to optimize limited resources in public administration while delivering responsive front-office services. SAP solutions support operations across a wide range of government functions, from accounting and procurement to case management and social services.

SAP’s Regional Head, Sergio Maccotta, said that IT-enabled shared services drive economies of scale and cost reduction in public services.

About SAP
SAP is the world’s leading provider of business software*. Today, more than 46,100 customers in more than 120 countries run SAP® applications—from distinct solutions addressing the needs of small businesses and midsize companies to suite offerings for global organizations. Powered by the SAP NetWeaver® technology platform to drive innovation and enable business change, SAP software helps enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcare and the public sector. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at )

(*) SAP defines business software as comprising enterprise resource planning and related applications such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.


Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

Copyright © 2008 SAP AG. All rights reserved.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.

Note to editors:
For free video content about SAP, please log onto www.thenewsmarket.com/sap to preview and request video. You can receive broadcast-standard video digitally or by tape from this site. Registration and video is free to the media.

For more information, press only:
Alana Ngoh, +971 (50) 810 0972, alana.ngoh@wallismc.com.