Unrest can force Middle-East to spend more on e-governance -Governance Now

Unrest can force Middle-East to spend more on e-governance

The political and social unrest in parts of the Middle East could be a boon for the ICT companies as it may force the local governments to spend more on e-Governance to deliver better services to the citizens.

PTI | May 25, 2011

The political and social unrest in parts of the Middle East could be a boon for the ICT companies, as it may force the local governments to spend more on e-Governance to deliver better services to the citizens, according to a senior Mahindra Satyam official.

Bobby Gupta, Vice President and Head, Middle East and North Africa (MENA) region, Satyam, said the company is targeting to achieve 100 per cent revenue growth from the region this fiscal. Mahindra Satyam's revenues from MENA region stood at approximately USD 56 million last fiscal.

"Unrest has, in a way, increased government spending on key programmes to deliver better services to citizens. In a way, it is good for all ICT companies. Unrest is limited to Egypt, Libya and Syria. (In) All these countries we have a limited exposure. We are focusing upon large markets like Saudi Arabia, Qatar and UAE," Gupta told PTI. He said government spending on much needed e-Government programs, faster adoption of shared services model, and increased spend in Oil and Natural Gas companies would be the growth drivers for the company in the region. "MENA region contributes around 5 per cent of our global revenue...We are targeting to grow at 100 per cent from MENA region," he said.

Mahindra Satyam has around 80 customers in the region, of which 72 are from gulf countries. The company added six new clients from the region and 12 clients globally in the fourth quarter. The company sees huge potential in terms of award of event management or logistics management contracts, and sports vertical will remain the key focused area moving forward.

The company said it was participating at QITCOM-2011, the Middle East's biggest information and communications technology event showcasing Qatar's booming technology industry, between May 24 and 26 at the Doha Exhibition Centre.

Gupta said the decision to hold the 2011 FIFA World Cup in Qatar has also driven in an influx of major development projects, many of which add ICT components that could help attract more IT spending.

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