In 2006, UAE businesses spent $508m outsourcing IT services to specialist suppliers.
Major companies operating in the sector include MDS UAE, Emirates Computers and Injazat, which is a joint venture between investment fund Mubadala and US outsourcing company EDS.
Margaret Adam, senior IT services analyst for research firm IDC said that suppliers still had much to do to increase the size of the market.
“We’re entering a new era and suppliers will need to change tactics to take advantage of it. IT services companies should streamline their operations and focus on strategic alliances, developing a pool of highly skilled individuals who can educate customers to the benefits of technology to their business,” she said.