According to Nizar Badwan, GM of Exact Software Middle East, the enterprise resource planning (ERP) market in the Middle East is expected to see further consolidation in 2005 as vendors react to a series of mergers and acquisitions in the industry. Oracle, PeopleSoft, JD Edwards, Baan and SSA are just a few of the ERP firms that have been affected by consolidation activity. Additionally, strong demand for ERP solutions from the service sector and increased investment in software from Qatar and Saudi Arabia are expected to be key areas of growth in the next 12 months.
“The year 2004 was dominated by the merger of the industry’s two largest players,” commented Badwan. “There will inevitably be some fallout as other vendors assess what impact this will have on the market both internationally and regionally. There have been suggestions in the market that other companies will merge, a trend I would expect to see continue in 2005. It is an interesting time for the ERP sector, and what happens over the next 12 months will determine the future direction of the industry.”
Despite a certain amount of confusion in the market due to the consolidation activity, Badwan believes that demand will continue to be strong for ERP solutions across the Middle East. He pointed out that companies are interested in streamlining their operations and reducing costs, especially as a means to spur growth in small to medium-sized businesses.
Badwan noted that Qatar, which will host the 2006 Asian Games, is expected to be a strong investor in ERP applications in the run-up to this huge sporting event. In Saudi Arabia, solid profits coupled with high oil prices produced good liquidity in both the private and public sectors, and it is certain that some of this cash will be plowed back into IT investment.
Exact Software Middle East is undergoing an 18-month program of regional expansion. The ERP vendor plans to open six new offices across the Middle East. The company has launched operations in Kuwait and plans for an office in Riyadh, Saudi Arabia are close to completion, with a presence in Qatar to follow. Plus, Exact has named Nilesh Jain as head of its UAE office, while Nizar Badwan will now direct Exact Software’s business in the region.
Also, in anticipation of its moves into Saudi Arabia and Qatar, Exact has localized its Globe 2003 Enterprise Solution for both markets — meaning the legal and financial requirements of each country have been built into its offering.
“Feedback from our customers has shown that they like our direct sales and support approach and in order to fulfill their needs, it is necessary to have a network of offices staffed by experienced professionals,” Badwan said.
