According to Ahmed Ashadawi, president and CEO of Al-Falak Electronic Equipment and Supplies, countries in the Middle East and North Africa region, especially Saudi Arabia, are witnessing extensive implementation of Enterprise Resource Planning (ERP) solutions, with over 75 percent of the companies in the Kingdom alone gearing up to deploy or upgrade ERP solutions.
“There is now a greater understanding of the importance of technology in complementing growth strategies of enterprises,” Ashadawi said. “Businesses have realized that the implementation of ERP solutions is no longer a luxury but a necessity to remain competitive and profitable. As a result, more and more companies in the region are implementing ERP solutions to streamline internal and external business processes such as human resources, financials and customer relationships, and facilitate efficient management of the organization’s day-to-day operations. Saudi Arabia has emerged as a leader in this segment. ERP spending in the Kingdom accounts for nearly 40 percent of the overall spending in the MENA region.”
ERP is an information system that integrates all manufacturing and related applications for an entire enterprise. ERP covers the broad set of activities supported by multimodule application software that help an enterprise manage the important parts of its business, including product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service and tracking orders.
Ashadawi has noticed a move toward ERP combined with outsourcing.
“There has been a marked trend toward outsourcing in the region,” he explained. “Outsourcing allows organizations to focus on their primary business objectives and shift the management of administrative tasks such as human resources and payroll to a dedicated provider, thereby ensuring access to better services while reducing costs. Major overseas businesses are now realizing that pursuing a Middle East sourcing strategy will help them gain in business process efficiencies, and as a result, the region is set to witness a surge in outsourcing activities.”
