How outsourcing to the gulf region can benefit European and North American companies
The IT outsourcing world is growing fast and is expected to generate an impressive
$591.24 billion
in revenue by 2025. Most of the industry's revenue came from the Americas. Europe, the Middle East, and Africa are close behind as big players in this booming market.
While India and Eastern Europe still lead the pack in outsourcing with their solid setup and skilled workers, the Gulf is becoming a tech powerhouse. More and more European and North American IT firms are looking to this region.
The Gulf Region as an Emerging Tech Hub
Countries in the Gulf Cooperation Council, particularly the UAE, Saudi Arabia, Qatar, and Bahrain, are rapidly accelerating their technological advancement initiatives.
Governments in the region are putting big money into wide-ranging digital overhaul programs in both public and private areas. These key efforts aim to build up local innovation skills, create appealing settings for global tech firms, and set up lasting digital systems that can hold their own on the world stage.
Main Benefits of Outsourcing to the Gulf for European and North American Companies
Outsourcing IT operations to the Gulf region influences companies looking to improve their performance. This region reduces expenses through lower overhead and offers access to skilled tech professionals. Because of this, businesses can increase their productivity and edge out competitors.
Cost Efficiency
The Gulf region may not offer the lowest labor costs compared to India or the Philippines, but it delivers competitively high-quality services.
Many Gulf nations give tax exemptions, lower business taxes, and set up free zones where businesses can work without paying VAT or income tax. Businesses that outsource to the Gulf can cut down on spending for buildings, staff training, and hiring.
Skilled Workforce
The Gulf region boasts a large and diverse talent pool with expertise in software development, AI, and more. Many professionals in the area have international certifications and experience working with Western companies.
Time Zone Benefit
One of the biggest advantages of outsourcing to the Gulf is that it sits on the clock.
Overlapping business hours with countries like the U.K., Germany, and France makes it easier to manage outsourced teams without delays. Companies can have live meetings, and reviews, and get updates from Gulf-based teams during their normal work hours.
Business-Friendly Environment
The Gulf region stands out as a prime outsourcing spot for European and North American firms due to its political stability, business-friendly policies, and solid legal systems.
Advanced Digital Infrastructure
The Gulf region boasts good digital infrastructure, providing fast internet, cutting-edge data centers, and reliable cloud computing options—essential for companies to outsource IT services.
Big tech firms like Microsoft, AWS, and Google Cloud operate data centers in the Gulf, offering secure and effective cloud solutions.
Saudi Arabia
and the UAE have put tough cybersecurity rules in place that line up with worldwide standards.
'Ideally, IT processes are running unnoticed in the background of your business because everything functions flawlessly and supports your work routine, not complicates it. As your IT outsourcing partner, we will strive for the ideal.'
Andy Lipnitski -
IT Director at ScienceSoft
Challenges of Gulf Outsourcing and How to Overcome Them
Cultural and Business Differences
The Gulf region has a business culture all its own shaped by local customs, religious beliefs, and top-down company structures. Some nations operate from Sunday to Thursday, which might lead to scheduling challenges for firms in Europe and North America.
Solutions:
Train your teams to understand the Gulf's cultural norms and business etiquette.
Set up structured communication channels to cut down on misunderstandings.
Legal and CompliancenConsiderations
Each Gulf country has its own rules for how businesses should operate, handle workers, pay taxes, and protect data. The Gulf region has multiple countries with their own regulatory systems.
Solutions:
Team up with firms that specialize in Gulf business regulations.
Outsourcing contracts should line up with local labor laws.
Data Security
The region is currently developing into a technology and digital services hub, this growth will also present increasing threats to cybersecurity that could affect businesses.
Solutions:
Pick secure cloud solutions.
Businesses should put worldwide cybersecurity plans into action to ensure their outsourced work meets industry standards.
Case Studies: Companies Successfully Outsourcing
BPC offers SaaS and on-site banking, payment, and e-commerce solutions. BPC partnered with ScienceSoft, an IT services provider with more than 13 years of experience. ScienceSoft took charge of providing L2–L3 infrastructure support, which covered network management, Microsoft and Atlassian systems support, and SharePoint optimization.
Through this collaboration, BPC successfully optimized its in-house workload, improved issue resolution speed, and enhanced system performance through strategic infrastructure upgrades.
Conclusion
The Gulf area is a viable place for the European and North American companies to outsource IT services. Outsourcing to the Gulf indicates productivity and innovation improvement.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
16 minutes ago
- Gulf Today
African leaders' call to meet energy needs
At the Africa Energy Forum 2025 which opened at Cape Town in South Africa, there was a sense of urgency as ministers from many of the countries talked of the need to build infrastructure, integrate the grid and go for renewable energy to reach power to 600 million on the continent who do not have access to it. South Africa's Minister for Electricity Dr. Kgosientsho Ramokgopa called out saying, 'Africa can no longer be seen as a passive recipient of imported solutions. We have the natural resources. The human capital, and the ambition to drive our own energy transition.' African Development Bank President Dr. Akinwumi Adesina spelled the magnitude of the energy challenge that Africa faces. He said, 'Africa requires $90 billion in annual energy investment through 2030. This is achievable if the right partnerships, de-risk investment, and focus on sustainable, inclusive models.' By the end of June 17, EnergyNet managing director Simon Gosling, said, 'This forum is not about promises – it's about delivery. Africa stands at a historic crossroads. What we decide to do together in the days ahead will shape our energy future for generations.' The meetings will continue to achieve their goal. For the year and more, African leaders have been speaking clearly, loudly and even differently from other parts of the world. The African governments and leaders are determined to chart an independent path for the African continent. They have realized that depending on the advanced economies of Europe, America and Asia will not help Africa to solve its problems. The African leaders are now thinking differently and loudly. They realize that Africa has to build its own infrastructure, and that it has to be done through cooperation among different African countries, cutting across national and regional boundaries. It is this emphasis on pan-African approach that strikes the perfect, positive note. Given the political volatility prevailing in many parts of Africa, it might seem unrealistic to talk about pan-African approach. But the truth of the matter is that no country, including the relatively well-off and politically strong South Africa, cannot hope to achieve the economic goals that only a united Africa can hope to achieve. The experiment of European Union (EU) seemed a vague dream when it set out on a small scale in 1956, but it had been built brick by brick by sensible European leaders who were wise enough to realise that national rivalries are of not much use in the face of a modern economy. It will be argued and rightly too that to build something akin to the European Union in Africa would take decades. But it is an important fact that some of the African leaders are showing the statesmanship needed to build something for the future. It is going to be a hard struggle for Africa and its leaders. But what will work for them is the fact that their eyes are set on the common goal of strengthening Africa on the energy front. What is important is the recognition of the goal that Africa's needs can be met only at the continental level. Africa is resource rich continent, and its leaders have recognized that European powers, and now the new market agent of Asia, China, have looked to Africa to tap the natural resources which the African people have not tapped for themselves. They now seem to recognize the fact they Africans will have to help themselves. Can the Africans raise the huge amounts they need to build the infrastructure? They have to because they have no option. African leaders have accepted the fact that they need to plan and act together.
Arabian Post
an hour ago
- Arabian Post
Gold Selling Surges in US as Asia Boosts Bullion Holdings
Demand for physical gold is diverging sharply across regions, with US investors cashing in on their bullion holdings while Asian buyers ramp up their purchases. Data shows US retail demand for gold bars and coins dropped to roughly 19.3 tonnes in the first quarter of 2025 — a five‑year low, down 22% year‑on‑year — as Americans took advantage of record prices to realise gains. Meanwhile, in Asia, appetite for physical gold remains robust. Chinese bar and coin demand reached its second‑highest level ever, with several countries in the region seeing 20–30% annual growth. Demand in India also surged amid price dips, driving improved retail activity even as premiums fluctuate. Analysts attribute the US selling trend to a combination of factors: profit‑taking following gold's spectacular rally — up nearly 40% over the past year — and a shift in investor preference toward ETFs. North American gold ETFs recorded an inflow of 134 tonnes in Q1 2025, suggesting that while physical purchases declined, financial instruments remained popular. Some US dealers report even charging customers to offload bullion, reflecting a surplus of minted coins like American Eagles, which saw production collapse over 70% year‑on‑year in May. ADVERTISEMENT In contrast, Asia is sustaining its physical bullion demand with cultural and economic drivers. In China, ETF inflows surged to a record 70 tonnes in April alone, more than doubling any previous monthly record. The World Gold Council estimates this accounts for over half of total global ETF inflows. Retail buyers in India increased purchases during market dips, with dealers reporting premiums around $3 per ounce, signalling a strategic entry point. Industry voices emphasise that regional differences stem from how gold is perceived. 'In the US, investors view dollars as king; in Asia, they'd rather hold gold and silver,' says a market analyst, highlighting the cultural divergence. In Asia, gold functions as both adornment and investment. In India, jewellery remains closely priced to spot, supporting demand in festive seasons. Yet in the US, bullion coins dominate retail figures, and sentiment shifts with political and economic conditions. A further pressure point is supply. Tariffs on Swiss refiners, including Pamp and Valcambi, have disrupted US bar availability, while dealers in New York's Diamond District report high-volume transactions and collector interest in themed bullion — including Trump‑branded coins — alongside rising scrap gold selling. Global gold demand remains healthy. First-quarter demand hit the highest since 2016, bolstered by central bank accumulation and investment flows, though jewellery sales contracted due to elevated prices. Central banks alone purchased over 1,000 tonnes in 2024. Looking ahead, market watchers caution that the US may experience renewed physical demand if bullion prices retreat or geopolitical risks rise. Meanwhile in Asia, rolling demand persists through festivals and as investors diversify amid currency or real estate uncertainties. Dealers in India have begun offering steeper discounts to clear inventories during slower seasons such as the monsoon, while China, Singapore, Japan and Hong Kong are observing moderated premiums. The current pattern underscores a global reshaping of gold dynamics. Institutional and sovereign actors, ETF investors and retail buyers across Asia are sustaining demand. In the US, physical selling contrasts with financial channel investment, but also reflects shifting investor preferences and broader economic optimism under current policy frameworks.
Broadcast Pro
4 hours ago
- Broadcast Pro
Deloitte and AWS strengthen ties to advance Middle East digital transformation
A new regional initiative aims to accelerate cloud adoption, AI and innovation across major industries, targeting $1bn in services by 2030. Deloitte Middle East and Amazon Web Services (AWS) have announced a significant expansion of their strategic alliance with plans to deliver $1bn worth of services by 2030, accelerating digital transformation across the Middle East. The agreement includes investments by both parties to scale regional capabilities, support local cloud adoption, and unlock new growth opportunities across key sectors. This move builds on Deloitte and AWS's long-standing global collaboration and reflects a shared commitment to helping businesses in the region embrace emerging technologies such as generative AI, data analytics and secure cloud infrastructure. The initiative was officially kicked off at a meeting held at Deloitte's Middle East offices in Dubai, where Rashid Bashir, Technology & Transformation Leader at Deloitte Middle East, met with Tanuja Randery, Managing Director for Europe, Middle East & Africa at AWS, and their leadership teams. This expanded regional collaboration will focus on helping enterprises modernise their core operations, increase agility, and drive innovation through cloud-native technologies and an AI-first approach. Deloitte will continue to grow its network of AWS-certified practitioners in the Middle East and invest in building dedicated Centres of Excellence to support complex transformation needs. Speaking about the deal, Rashid Bashir, Technology & Transformation Leader at Deloitte Middle East, said: 'This initiative is a major step forward in our mission to drive large-scale transformation for organisations across the region. By deepening our alliance with AWS, we are not only investing in advanced technologies but also in the talent and tools that local businesses need to thrive. Together, we will help clients accelerate innovation, build resilience, and unlock long-term value through cloud and AI adoption at scale – starting right here in the Middle East.' Through this initiative, Deloitte and AWS will work closely with clients across sectors such as banking, energy, public services, and healthcare, combining Deloitte's deep industry insight with AWS's cutting-edge capabilities. Core focus areas will include cloud strategy and architecture, application modernisation, AI development and integration, cybersecurity and governance. Tanuja Randery, Managing Director for Europe, Middle East & Africa at AWS, added: 'This collaboration means Deloitte and AWS can bring their proven methodology for industry solutions to customers in the Middle East. Customers can look forward to significantly accelerating the pace of their bold transformation projects by having a partner which will stay with them from inception to value realisation.' This builds on the success of similar collaborations in Europe and Africa, where hundreds of clients have already benefited from end-to-end support in their digital journeys. As demand for trusted, scalable transformation partners continues to grow, the alliance between Deloitte and AWS is set to play a key role in shaping the region's digital future.
