IDC MarketScape

IDC MarketScape: GCC Business and Industrial Internet of

Things Consulting and Systems Integration Services 2022
Vendor Assessment
Hyder Aftab Krishna Chinta

IDC MARKETSCAPE FIGURE

FIGURE 1

IDC MarketScape: GCC Business and Industrial Internet of Things Consulting and
Systems Integration Services 2022

Source: IDC, 2022

May 2022, IDC #META49097022

Please see the Appendix for detailed methodology, market definitions, and scoring criteria.

IDC OPINION

This IDC study represents a vendor assessment of the 2022 Gulf Cooperative Council (GCC)
business and industrial Internet of Things (IoT) consulting and systems integration (B&IIoT C&SI)
services market using the IDC MarketScape model. This research presents a quantitative and
qualitative assessment of the characteristics that explain a vendor's success in the marketplace
and can help anticipate the vendor's ascendancy.

This IDC MarketScape covers a variety of vendors participating in the B&IIoT C&SI services
market across the GCC region. This evaluation is based on a comprehensive framework and a set
of parameters expected to be most conducive to success in providing IoT C&SI services in both
the short and long term. A significant component of this evaluation is the inclusion of services
buyers' perceptions of the key characteristics and capabilities of these providers. Key findings are
discussed below.

 Across all 40 of the strategies and capabilities that were assessed:

 The top two areas for IoT consulting and systems integration services in which
vendors performed well are:
 The ability to provide onsite support when required by end customers
 Overall business and industrial IoT consulting and systems integration delivery
capabilities
 The top two areas of improvement in terms of IoT consulting and systems integration
services are:
 Service providers' plans to retain customers as part of their long-term strategy
 The ability to convert customers into repeat customers
 According to survey feedback from 22 of the evaluated vendors' customers, the following
are among the top business priorities of highly rated vendors:
 Building and using more efficient tools and methodologies for B&IIoT C&SI services
delivery
 Improving engagement value
 The top two service provider characteristics to ensure successful IoT consulting and
systems integration services delivery are:
 The ability to provide onsite support for B&IIoT C&SI services as required
 The breadth, depth, and scale of relevant B&IIoT C&SI services talent available for
service delivery in the GCC region

IDC MARKETSCAPE VENDOR INCLUSION CRITERIA

This research includes analysis of 11 key IoT C&SI services providers that have a presence in the
GCC market. IDC has designed the assessment to evaluate the characteristics of each firm,
instead of only its size or the breadth of its services. The inclusion criteria dictate that the vendor
should have at least one office and delivery capabilities in one of the three sub-regions within the
GCC region, namely the UAE, Saudi Arabia, or "Other GCC" (which includes Oman, Qatar, Kuwait,
and Bahrain). An included vendor should have reported a minimum of $2 million in revenue from
these services within the region. Additionally, it is conceivable — and, in fact, the case — that
specialty firms can compete with multidisciplinary firms on an equal footing. As such, this
evaluation should not be considered a "final judgment" on the services providers for an IoT

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services project. Each enterprise should take into consideration its own objectives and
requirements to determine which firms should be considered as potential candidates for an
engagement.

ADVICE FOR TECHNOLOGY BUYERS

Business and industrial IoT consulting and systems integration services providers have been
investing in capabilities to provide increased value to their customers. Clients are experiencing the
following transformation benefits:

 Enhanced operational performance, improved value chain visibility and insights, and
reduced costs
 Operational process assessment, reduced incident rate, and increased productivity
 Digital strategy road map formulation and supply chain analysis
 Real-time asset and resource monitoring to ensure high uptime, availability, reliability, and
sustainability
 Superior customer experience and citizen service by connecting everything and providing
relevant services
 Increased awareness and feedback
IoT C&SI services providers have developed domain-specific expertise and value discovery
frameworks that enable them to build strategic IoT road maps for enterprises based on their
maturity. Some vendors, specifically telecom operators, have built off-the-shelf IoT solutions and
have shown interest in continuing to make such investments in the future. Once these solutions are
integrated, clients see business results and returns on their investments more rapidly. Telecom
operators, including some well-established consulting and systems integrators, are exploring
capex-to-opex models in addition to time and material (T&M) models, subscription-based models,
and outcome-based payment models to reduce the barriers to entry for their customers.

IoT C&SI services providers have partnered with global technology vendors, IoT platform
providers, and OEMs to leverage their intellectual property (IP) or to co-create new IP. Co-
innovation and co-creation activities are currently being undertaken by select IoT C&SI vendors
with third-party innovation labs, academic institutes, and potential customers across the GCC
region. Other technology services provided in conjunction with IoT include cloud, 5G, edge,
analytics, augmented reality (AR) and virtual reality (VR), intelligent operations/robotics, artificial
intelligence (AI) and machine learning (ML), cybersecurity, and potentially even metaverse.

IDC recommends that buyers of B&IIoT C&SI services take the following steps when evaluating
vendors:

 Clearly identify your business objectives or goals in terms of your current IoT
infrastructure. Ask the provider to explain how the recommended strategy or
implementation fits into your overall business and aligns with what your customers expect
from you. Also ask about the ROI.
 Ensure that shortlisted service providers have experience in IoT consulting and integration
services within your industry. Evaluate vendor ecosystems (partnerships with technology
firms and other stakeholders) and discuss relevant completed projects or ongoing
relationships.
 Do not shy away from asking your provider if you need help with ROI or other tools that
provide an understanding of the benefits of these implementations. This will assist you in
securing new budgets or extending existing budgets. Running a real-world proof of
concept (POC) or proof of value (POV) with your provider will help establish a business
case for such investments.

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  Do not look at IoT in isolation; instead, look at it as a key enabling technology together with
edge, cloud, AI services, AR/VR, and autonomous systems. Explore the technologies
based on the end outcomes. Build a road map in consultation with your service provider to
implement relevant technologies and make use of systems integration and managed
services.
 Identify areas of your operation where security can never be compromised and ensure
your IoT service provider has the experience and competency to consult and integrate
secure operations and infrastructure.
 Wherever applicable, explore any recommendations the provider makes regarding your
current situation or aspirations for combined IT and operational technology (OT)
infrastructure.
 Gauge the service provider's ability to provide flexible pricing models that will support you
in securing budget approvals from management. In addition to traditional project-oriented
pricing models, pricing options should include transaction-based/outcome-based,
subscription, and opex models.

VENDOR SUMMARY PROFILES

This section briefly explains IDC's key observations resulting in a vendor's position in the IDC
MarketScape. While every vendor is evaluated against each of the criteria outlined in the
Appendix, the description here provides a summary of each vendor's strengths and challenges.

TCS
TCS is positioned in the "Leaders" category of this GCC IDC MarketScape for business and
industrial IoT consulting and systems integration services vendor analysis, 2022.

TCS is part of the Tata Group, one of India's multinational business groups. The company offers
business and industrial IoT consulting and systems integration services, and it has a notable
presence across the GCC region in industries such as manufacturing, telecommunications,
consumer packaged goods, energy and resources, transportation, logistics, utilities, government
and public services, retail, healthcare, and hi-tech.

TCS's IoT solutions are aligned to drive business and operations transformation for customers,
with an emphasis on enabling change across distinct functions of organizations. The company
guides customers strategically through value-discovery consulting workshops to understand their
enterprise-wide business objectives and challenges and to chart a technology road map to meet
these objectives. TCS then helps its customers on their business and operations transformation
journey to achieve greater visibility, efficiency, and decision-making capability by deploying
solutions such as connected assets, connected products, smart manufacturing, connected supply
chain, connected workers, and Smart Cities.

To help enterprises plan, build, run, and scale their IoT services, TCS has launched an IoT
business framework called "Bringing Life to Things", which consists of use cases that deliver
business value and build predictive, self-aware systems that can transform an organization with
the help of its ecosystem partners. The company offers these capabilities and delivers results
using a variety of pricing and delivery models. To deliver business results through a partnered
solution model, TCS has established global partnerships with Microsoft, AWS, Siemens, Intel,
Here Technologies, PTC, Cisco, Airtel, and GE. Additionally, it has partnered with key global
communications, device, and sensor vendors. The company has undertaken co-innovation or co-
development initiatives with end-user organizations within the engineering, transportation, and
utilities industries in the GCC region. Using its global innovation centers, research and
development (R&D) labs, and customer excellence centers, TCS supports customers in

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demonstrating the business value of IoT project investments by means of POCs, POVs, and ROI
analysis. TCS's global centers of excellence (COE) on edge computing, AR/VR, industrial
analytics, platforms, robotic automation, and cybersecurity help it to solve customers' digital
transformation problems and enable end-to-end IoT implementation. This approach ensures IoT
scalability and positive business value across companies within the GCC region.

Strengths
Buyers rated TCS highly in terms of its business and industrial IoT consulting and systems
integration services, the company's delivery capabilities, its ability to offer flexible pricing options,
and the perceived value for money, innovation capabilities, and communication. These factors
have encouraged buyers to spend more with the vendor. TCS also rated highly in terms of its
ability to provide support at customers' operation locations. IDC considers TCS's strengths to be its
portfolio enhancement strategy, R&D efforts, customer engagement, and service delivery.

Challenges
TCS should invest in enhancing its delivery automation tools and further growing non-labor-based
revenues in the GCC region. Additionally, TCS should intensify its sales efforts in the region to gain
more market share. It could also continue expanding its delivery teams in the region and retain top
talent in the market. This would increase customer confidence and ensure quality in IoT project
delivery.

IBM
IBM is positioned in the "Leaders" category of this GCC IDC MarketScape for business and
industrial IoT consulting and systems integration services vendor analysis, 2022.

The company has organized IoT, AI, and data services into a single unit, the Cognitive Business
Decision Support consulting practice, to deliver holistic, platform-agnostic solutions. IBM has an
established presence in manufacturing, supply chain and inventory optimization, and smart
buildings; it has also invested in IoT assets and services for the energy and utilities, oil and gas,
travel and transportation, and government sectors in the GCC region. The company is planning to
further strengthen its partnership network in the GCC region to develop joint delivery capabilities
for IoT-enabled asset optimization, Industry 4.0, and smart building solutions by combining its
delivery capabilities for AI, edge analytics, and blockchain.

IBM's research labs and design studios in the region encourage co-creation and co-innovation.
The company adopts flexible pricing models such as opex models, as-a-service models, T&M
models, and outcome-based models for IoT consulting and systems integration services projects.
The company plans to intensify its sales and marketing efforts to enhance its market position in the
GCC region. Its marketing strategy includes publishing thought leadership material, participating in
regional industry events such as ADIPEC and GPCA, and hosting branded events such as IBM
Think to spread awareness of its IoT delivery capabilities. Due to its limited customer pool, IBM is
focused on retaining existing customers and generating additional revenue through continuous
engagement. IBM demonstrates its value proposition by running POCs with minimal or even zero
initial investments and by driving incremental revenue opportunities from existing customers.

Strengths
Buyers lauded IBM for its ability to provide superior engagement value and use more efficient tools
and methodologies for delivering IoT consulting and systems integration services, as well as for its
delivery automation. Customers also recognized IBM's communication on IoT-specific insights,
service innovation capabilities, and the breadth, depth, and scale of relevant services talent. They
rated IBM highly for its ability to provide onsite support and manage staff turnover during the life
cycle of an IoT services project.

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Challenges
IBM should focus on strengthening its sales capabilities in the GCC region with a dedicated
workforce to sell IoT services. It should also look to enhance its growth execution strategy by
expanding its partnership ecosystem and joint sales activities. Furthermore, the company needs to
improve its value-for-money proposition when compared with some of its direct competition in the
GCC region.

Accenture
Accenture is positioned in the "Leaders" category of this GCC IDC MarketScape for business and
industrial IoT consulting and systems integration services vendor analysis, 2022.

Industry X is Accenture's approach to leveraging digital technologies such as IoT, analytics, AI,
robotics, 3D printing, and digital twin to reinvent clients' businesses. It provides an end-to-end
framework and a cross-functional set of capabilities and resources to operationalize digital
innovation across clients' businesses at every stage of product and service development.
Accenture also offers over 40 solutions and accelerators in areas such as engineering,
manufacturing system deployments, production and operations from digital plant, digital worker,
AI/ML-driven use cases to drive production improvements requiring connectivity, and new smart
products and solutions with embedded features to deliver data-driven insights.

Accenture is focusing on its IoT services for industries such as communications, media,
technology, energy, utilities, oil and gas, manufacturing (including automotive), consumer goods,
healthcare, government, and financial services. The company guides customers strategically using
an innovation-led approach, in which it combines the capabilities of its research, ventures, labs,
innovation centers, and delivery centers to help end users imagine their future IoT solutions.
Accenture's Industry X Innovation Network is used to rapidly develop and test solutions. The
company then helps its customers on their business and operations transformation journey through
its IIoT strategy and consulting services and IoT systems integration services. In addition to making
targeted company acquisitions, Accenture has forged strategic partnerships with IoT platform
vendors such as Microsoft, AWS, Google, SAP, PTC, Siemens, Rockwell, and GE for technology
development and implementations. Additionally, it continues to allocate dedicated IoT R&D
budgets and expand its R&D and innovation centers in the GCC region.

Strengths
Buyers identified several strengths for Accenture across many different capabilities, including its
portfolio of services, range of pricing models, and innovation capabilities in the GCC region. IDC
recognizes Accenture for its plans to address customers' business and technology priorities, for its
frameworks, and for the breadth and depth of IoT services it offers. The company's participation in
prestigious projects such as Expo 2020 in Dubai and the ongoing Red Sea project in Saudi Arabia
will enhance its visibility within the enterprise and government sectors of the GCC region.

Challenges
IDC believes Accenture should strengthen its market position in the region by investing in its sales
and delivery teams. The company should also enhance its offering strategy by increasing pricing
and engagement options to improve customer stickiness and encourage customers to spend more
with the vendor. Accenture could also explore more joint sales opportunities specific to the GCC
region to increase its visibility and expand its market share in the region. Additionally, the company
should focus on hosting and participating in more IoT-specific technology or industry events,
creating awareness of its delivery capabilities, and demonstrating enhanced delivery efficiency.

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EY
EY is positioned in the "Leaders" category of this GCC IDC MarketScape for business and
industrial IoT consulting and systems integration services vendor analysis, 2022.

EY positions itself as a firm that creates long-term value for customers by being client-centric,
attracting exceptional talent, and transforming businesses using data and technology. The
company's consulting organization is structured across three pillars, namely business consulting,
technology consulting, and people consulting. The company's IoT offerings are segmented by
industry and accelerator solutions, which support clients in innovating, as well as in adopting and
deploying IoT. Components within each of the solutions include technology consulting, systems
integration services, and managed services. EY's IoT offering strategy is driven by the company's
global IoT network of excellence, a dedicated network to grow the ecosystem of clients, partners,
and start-ups and bring sophisticated end-to-end IoT business solutions to the market. The
company has an IoT footprint in sectors such as power and utilities, oil and gas, consumer
products and retail, technology, media, and telecommunications, life sciences and healthcare,
financial services, automotive, and government and public services. EY is also pursuing IoT-
enabled cross-sector solutions.

EY's more than 50 global innovation centers, known as "EY wavespace" and including a center in
Dubai, are a network of makers' environments that combine business strategy, design thinking,
and the necessary digital and technological expertise to rapidly prototype and bring innovative
client ideas to life. They provide a platform to co-innovate and co-develop, leveraging EY's
ecosystem and local start-ups. The company serves large multinational organizations and
medium-sized companies. The company has also formed alliances and ecosystem relationships
with organizations such as Adobe, BlackLine, Blue Prism, Cisco, Dell EMC, Infosys, IBM,
ServiceNow, SAP, and Microsoft. This enables EY and its clients to tap into the collective
innovation and capabilities of these organizations.

Strengths
According to buyers, EY's overall IoT consulting and systems integration delivery competency is
strong. They also liked EY's breadth and depth of services and the competency of the delivery
team. Furthermore, they highly rated EY's communication and engagement capabilities, flexible
pricing models and perceived value for money charged, innovation capabilities, and the company's
talent management measures.

Challenges
EY should focus on strengthening its presence in the region, both in terms of sales and delivery
capacity. The company should consider enhancing its partner ecosystem and joint sales
opportunities within the GCC region. It should offer decision-making tools and ROI models to help
customers make a stronger case for IoT services spending with internal stakeholders.

Wipro
Wipro is positioned in the "Leaders" category of this GCC IDC MarketScape for business and
industrial IoT consulting and systems integration services vendor analysis, 2022.

Wipro's IoT vision is to transform enterprise businesses, services, and processes while enhancing
customer experience. The company's IoT engineering services and solutions span all the major
industry segments, including manufacturing, energy and utilities, healthcare, and life sciences,
which are supported by on-the-ground delivery teams to provide business and industrial IoT
strategy and consulting services, engineering services, and managed services.

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Wipro's IoT-led digital transformation approach is focused on bringing together end-to-end
capabilities and solutions for customers and assisting them in all aspects of IT-OT integration
through product engineering. This includes edge IoT engineering services, hardware services, IoT
platforms, applications development, advanced data analytics and artificial intelligence, enterprise
systems integration, IoT security services, and remote command center operations. Wipro has built
a partnership ecosystem with Microsoft, AWS, GE, PTC, PWC, IBM, Google, and more in the IoT
value chain to deliver solutions in line with evolving customer needs and technological
advancements.

Globally, including in the GCC region, Wipro uses a five-step consulting framework, the cEffectus
end-to-end services development framework, and the cSculptor service delivery framework to
standardize its IoT service delivery. In addition to other delivery models, Wipro claims it can
provide co-invest/co-build models for its clients. Additionally, Wipro demonstrates business value
for its IoT project investments, with approximately 15 R&D labs, the Thinkspace IIoT incubation
center with PTC, COEs, and Industry 4.0 solutions teams globally. While its R&D activities
continue, Wipro aims to run rapid real-world POCs and POVs to demonstrate its value proposition.
With over 35 years of engineering DNA combined with broad service delivery capabilities, Wipro
promises innovative IT/OT solutions and delivers enhanced value to customers.

Strengths
Clients rated Wipro highly in terms of the breadth, depth, and scale of relevant IoT consulting and
systems integration services talent, its overall delivery capabilities, its ability to provide onsite
support within the GCC region, its flexible pricing models, and value for price charged. As a result,
buyers expressed plans to increase their spending with Wipro.

Challenges
Wipro should focus on improving its sales capacity in the GCC region and support clients in
securing additional budget from their management for IoT projects. Wipro should re-evaluate its
billing rates and identify opportunities to increase its rates to match those of its direct competition in
the GCC region. Additionally, the company needs to intensify its marketing, R&D, sales, and
distribution activities in the GCC region.

e& enterprise
e& enterprise is positioned in the "Leaders" category of this GCC IDC MarketScape for business
and industrial IoT consulting and systems integration services vendor analysis, 2022. e& enterprise
(formerly known as Etisalat Digital) is the business pillar of e& (formerly known as Etisalat Group)
in the Middle East and Africa (MEA) region.

In terms of its capabilities, the company is on par with some of the global consulting and systems
integration services providers with a presence in the region.

e& enterprise's approach is to deliver IoT consulting and systems integration services and
solutions to enterprises and government customers by bringing 5G connectivity and IoT/AI
capabilities to offer end-to-end solutions. While e& enterprise pursues project-based IoT services
opportunities, it is equally focused on launching off-the-shelf IoT solutions using as-a-service
models. The company's IoT solutions include connected assets, surveillance, smart and
sustainable cities, retail and payments, smart and safe home, Industry 4.0, and digital health
solutions with a variety of pricing models.

e& enterprise has created the necessary tools to automate some of its delivery processes, along
with methodologies and frameworks to deliver end-to-end IoT projects. It is implementing a plan to
significantly increase its capabilities around data analytics and AI, and to improve its user interface

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development and delivery capabilities. Additionally, the company plans to venture into new
markets through both organic and inorganic means to deepen its capabilities and increase its
footprint across the wider MEA region. The company has an IoT partner program to bring new
partners into its ecosystem to co-create IoT solutions and explore joint sales opportunities. e&
enterprise has opened innovation centers and co-creation labs in Dubai and Abu Dhabi to
showcase its digital services delivery capabilities and co-create IoT solutions with its customers.

Strengths
The company is differentiating itself by offering a variety of pricing models, including opex models
and joint-investment models with customers, to increase its chances of winning contracts for large-
scale implementation projects in the GCC region. Buyers cited several areas of strength for e&
enterprise, including its headcount, sales and delivery staff, and co-creation labs within the GCC
region. The company is also rated highly in terms of its ability to support clients in securing
additional budget from their management through value demonstration and in terms of converting
existing customers to repeat clients. A number of end users plan to increase their IoT services
spending with the company.

Challenges
IDC believes e& enterprise's partnership strategy should be reviewed and expanded by extending
the company's partnership program to pursue more joint sales opportunities. Overall, this would
increase its IoT sales potential. Additionally, e& enterprise should enhance its delivery tools,
frameworks, and methodologies to achieve high levels of delivery automation. The company
should also intensify its market communication and engagement activities by providing industry-
specific IoT insights.

machinestalk
machinestalk is positioned in the "Major Players" category of this GCC IDC MarketScape for
business and industrial IoT consulting and systems integration services vendor analysis, 2022.

The company boasts an IoT platform, IoT consulting and systems integration service capabilities,
and strong technical support capabilities. machinestalk is a pioneer of IoT services in Saudi Arabia
and has been developing its platform and solutions delivery capabilities over the past 15 years.
The company has developed both business-to-business (B2B) and business-to-consumer (B2C)
solutions. It offers over 18 IoT solutions for organizations in industries such as logistics and
transportation, oil and gas, manufacturing, smart buildings, communities, and Smart Cities.

The company has in-house capabilities to develop IoT and analytics applications on its open-
source platform. It also possesses the necessary skills to provide IoT consulting and on-premises
implementation projects. It has over 35 partnerships with OEMs, satellite communication providers,
and third-party platform and application providers. This includes strong partnerships with third-
party platform vendors such as Microsoft and Google, DeLorme for tracking solutions, and satellite
communication services providers such as Orbcomm and Inmarsat. It has also forged partnerships
to implement large-scale connected car solutions in Saudi Arabia by 2022. machinestalk believes
in showcasing the value of IoT solutions by carrying out POCs, demonstrating in-house R&D skills,
and using custom solution development skills to meet specific customer requirements.

Strengths
Clients lauded machinestalk for the quality of its IoT services. Customers have also rated the
company highly in terms of its breadth, depth, and scale of relevant IoT consulting and systems
integration services talent and its ability to provide onsite support. The company's LoRa Alliance
membership has helped it to win a prestigious project with the Red Sea Development Company to
roll out a LoRaWAN network and to deliver staff identification solutions.

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Challenges
machinestalk should explore additional joint marketing and sales projects with partners to grow its
market share in Saudi Arabia. The company should further enhance its marketing and
communication activities to spread awareness of IoT solutions and position itself strongly in the
local market. It also needs to implement more measured initiatives to attract and retain the top
talent in the market.

solutions by stc
solutions by stc is positioned in the "Major Players" category of this GCC IDC MarketScape for
business and industrial IoT consulting and systems integration services vendor analysis, 2022.
solutions by stc is the systems integration and digital services arm of the stc group and went to an
IPO in 2021.

solutions by stc has partnerships with OEMs, other systems integrators, and cybersecurity
providers, both locally and globally. It operates across the IoT value chain, including strategy,
consulting, design, deployment, and systems integration and management services in sectors
including oil and gas, telecommunications, banking, government, education, healthcare, and real
estate. Over time, the company has expanded its delivery capabilities by adding skilled manpower,
partnering with technology vendors, developing off-the-shelf IoT solutions, and intensifying its
sales and marketing efforts. The company's off-the-shelf IoT products include fleet management,
video surveillance services, mobile point of sales, digital signage, asset management, and staff
identification.

The company's R&D team has been focusing on developing platforms and analytics software.
solutions by stc also highlights its abilities in terms of solution prototyping, implementation, the
integration of big data and AI/ML applications, and security solutions as part of its broader IoT
portfolio. The company takes a consultative sales approach to understanding clients' business
requirements, designing and developing customized solutions to meet requirements. The company
also highlights its ability to co-create IoT solutions to meet specific business requirements. Its off-
the-shelf IoT solutions are scalable and available under different payment models, including
subscription models.

Strengths
As part of the stc group, solutions by stc has access to the large customer base and the
connectivity services offered by stc in Saudi Arabia. Buyers rated the company highly for its
capabilities in terms of portfolio and delivery, delivery automation, pricing models, marketing and
communication, growth execution, innovation and R&D, and talent and talent management.

Challenges
solutions by stc should further intensify its IoT growth strategy. It should start creating proprietary
tools and methodologies to encourage customer adoption. The company should also start
targeting small and medium-sized businesses (SMBs) in addition to the enterprise and government
segments, with a wider selection of industrial IoT solutions and intensified sales and joint sales
efforts. Furthermore, it should focus on developing an IoT-specific customer engagement and
retention strategy.

Tech Mahindra
Tech Mahindra is positioned in the "Major Players" category of this GCC IDC MarketScape for
business and industrial IoT consulting and systems integration services vendor analysis, 2022.

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Tech Mahindra offers IoT consulting and systems integration services across the GCC region. The
company has a comprehensive portfolio of verticalized solutions classified under a wide range of
industry verticals. Its consulting services include maturity assessment, marketing benchmarking,
partner selection, ROI analysis, project charter and road mapping, security assessment, user
experience design, use case identification, process assessment, and change management.

The company is adopting IP-led growth and an agile delivery approach in the areas of digital twin,
connected supply chain, asset performance management, engineering and analytics, smart
infrastructure, and Industry 4.0 solutions to strengthen its position in the GCC region. It uses
automated zero-touch provisioning services for IoT devices, device testing tools, and proprietary
IoT tools and platforms. It promotes COE engagement models for minimum viable product (MVP)
creation, piloting, hypothesis testing, and scaling of IoT deployment projects.

Tech Mahindra believes in leveraging its frameworks, platforms, labs, and other targeted
investments to fulfill the business needs of organizations amid changing market conditions. It has
also implemented an internal transformation project known as DAVID (short for Digital,
Automation, Verticalization, Innovation, Disrupt) to achieve greater delivery excellence.
Additionally, the company has go-to-market partnerships with global technology vendors such as
PTC, Microsoft, AWS, Siemens, Software AG, IBM, Intel, and Cisco. Tech Mahindra's R&D centers
and COEs are mostly located in India. However, the company leverages these facilities centrally
for R&D requirements in other regions, including the GCC region. It is also planning to leverage
these facilities to develop innovate solutions for the healthcare, telecommunications, oil and gas,
energy and utilities, travel, transport and logistics, ports, government, and retail sectors across the
region.

Strengths
Buyers rated Tech Mahindra highly for the strength of its IoT consulting and systems integration
delivery competency and its ability to provide onsite support. Additionally, customers highly rated
Tech Mahindra's flexible pricing models and perceived value for money charged. Most importantly,
customers' increased spending indicates their interest in continuing to work with Tech Mahindra.

Challenges
Tech Mahindra should focus on strengthening its presence in the region, in terms of both sales and
delivery capacity. The company should consider increasing its overall sales efforts and partnership
network to grow its market share in the GCC region. Tech Mahindra should also increase its
marketing and communication activities to create awareness of the delivery and innovation
capabilities and the breadth, depth, and scale of relevant IoT consulting and systems integration
services talent available in the GCC region.

AEC
AEC is positioned in the "Major Players" category of this GCC IDC MarketScape for business and
industrial IoT consulting and systems integration services vendor analysis, 2022.

In 2021, AEC was acquired by Saudi Arabian Military Industries, which is a wholly owned
subsidiary of the Public Investment Fund. AEC primarily caters to the electronics, ICT, and security
needs of organizations in the Saudi defense, aerospace, and energy industries. Its primary
functions include the research and development, designing, manufacturing, assembling, and
testing of various types of electronics equipment, circuit boards, and implementation services.

AEC is continually developing its portfolio of offerings in the IoT domain through R&D activities. Its
IoT-specific solution is primarily focused on advanced metering infrastructure, asset tracking
solutions, and environmental monitoring solutions. The company has partnered with over 40 local

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and global OEMs and software and platform providers. Together with its partners, it assesses
emerging market needs and aligns its sales, delivery, and strategy with those needs. Thus, AEC
aspires to be at the forefront of innovation. The company assists clients with customized solutions
based on open architecture, integrating these solutions with legacy systems to automate business
processes, drive process efficiencies, and reduce costs. The company is working on a strategy for
more attractive payment models, including subscription-based IoT delivery models. Given the
nature of the strategic projects in which it is involved, AEC is focused on developing its delivery
capabilities in-house to cater to clients' requirements.

The company intends to move away from being a licensed infrastructure services provider to being
a digital transformation partner by embracing automated processes. It has marketed its IoT,
managed security, and automation solutions at regional events such as GITEX, Government
Congress, DX Saudi Arabia, and the International Defense Exhibition and Conference.

Strengths
IDC recognizes AEC's strong portfolio and delivery capabilities, growth execution capabilities, and
Saudization initiatives that have strengthened its brand image. Buyers feel that AEC has some
good overall IoT consulting and systems integration services capabilities. The company was rated
highly for its breadth, depth, and scale of relevant IoT consulting and SI services talent, as well as
its ability to provide onsite support. As such, end users have shown high levels of interest in
increasing their spending with AEC.

Challenges
AEC should focus on further improving its product innovation and services delivery automation
capabilities. It should also develop its sales and distribution strategy, a strategy for offering flexible
pricing models, and an employee retention strategy. Furthermore, AEC should start demonstrating
its capabilities across all major industry verticals, as it appears that awareness of the brand is
currently limited to certain industries.

Mobily
Mobily is positioned in the "Major Players" category of this GCC IDC MarketScape for business
and industrial IoT consulting and systems integration services vendor analysis, 2022.

The company is aiming to be a major digital transformation service provider in Saudi Arabia by
targeting opportunities across the transportation, healthcare, education, government, military, and
banking and financial services sectors, as well as the resources industry. The company's
participation in prestigious projects such as Saudi Electricity Company's smart metering project,
the Riyadh Metro project, and the Makkah bus project is expected to elevate its visibility in the IoT
value chain. Mobily is strengthening its portfolio through partnerships with platform players such as
Cisco for the Jasper platform and PTC for the ThingWorx platform. The company has also
developed a proprietary IoT platform called Milestone. Mobily's marketing and communication
strategy includes participation in digital media and workshops, thought leadership over virtual
platforms, reseller- or partner-hosted events, seminars, expos, and sponsorships. Mobily has
participated in events such as LEAP, Saudi IoT, Fintech Saudi, and the DX Saudi Arabia
Government Congress. Although the company has dedicated IoT R&D staff, it is aiming to further
intensify R&D activity through global technology partnerships.

Mobily is targeting opportunities presented by the Saudi Vision 2030 agenda and tapping into the
growth prospects emerging from the SMB, large, and government segments. Its approach is to
leverage technologies such as IoT, AR/VR, and AI to support the digital transformation initiatives of
the business and industrial sectors in terms of improving operational efficiency and effectiveness,
driving business growth and technology adoption, enhancing delivery capabilities, improving

©2022 IDC #META49097022 12

customer experience and loyalty, and automating the real-time diagnostics and control capabilities
of businesses using IoT solutions. Mobily is driving industry efficiency through solutions such as
fleet management, weight monitoring, video surveillance and analytics, smart city, smart metering,
and connected cars, catering to multiple industries. The company is planning to strengthen its
offerings by developing specialized IoT platforms, forging partnerships with global technology
companies, and enhancing delivery processes and mechanisms.

Strengths
IDC recognized Mobily for the growth of its IoT business, the capacity of its delivery team, and the
rate of repeat customers. End users rated it highly for its depth and scale of relevant IoT consulting
and systems integration services talent. Customers also rated Mobily highly in terms of its plans to
enhance internal sales capabilities and for its efforts to retain customers. As a result, end users
have expressed a willingness to increase their spending with Mobily. Additionally, a large-scale
smart metering project that the company delivered for Saudi Electric Company (SEC) helped it to
gain a higher market share for the year 2020.

Challenges
Mobily should focus on further enhancing its internal IoT delivery capabilities instead of banking on
the delivery capabilities of its sub-contracting partners. The company should develop its innovation
capabilities by launching R&D centers, co-creation/co-innovation labs, and centers of excellence
within the domestic market. Additionally, the company should focus on using advanced tools to
automate its IoT services delivery efforts. Customers also suggested that Mobily should continue
intensifying its sales and distribution and marketing and communication efforts.

APPENDIX

Reading an IDC MarketScape Graph

For the purposes of this analysis, IDC divided potential key measures for success into two primary
categories: capabilities and strategies.

Positioning on the y-axis reflects the vendor's current capabilities and menu of services and how
well aligned the vendor is to customer needs. The capabilities category focuses on the capabilities
of the company and product today, here and now. Under this category, IDC analysts will look at
how well a vendor is building/delivering capabilities that enable it to execute its chosen strategy in
the market.

Positioning on the x-axis or strategies axis indicates how well the vendor's future strategy aligns
with what customers will require in three to five years. The strategies category focuses on high-
level decisions and underlying assumptions about offerings, customer segments, and business
and go-to-market plans for the next three to five years.

The size of the individual vendor markers in the IDC MarketScape represent the relative market
shares for the year 2020 of each individual vendor within the specific market segment being
assessed.

IDC MarketScape Methodology

IDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC
judgment about the market and specific vendors. IDC analysts tailor the range of standard
characteristics by which vendors are measured through structured discussions, surveys, and
interviews with market leaders, participants, and end users. Market weightings are based on user
interviews, buyer surveys, and the input of IDC experts in each market. IDC analysts base

©2022 IDC #META49097022 13

individual vendor scores, and ultimately vendor positions on the IDC MarketScape, on detailed
surveys and interviews with the vendors, publicly available information, and end-user experiences
to provide an accurate and consistent assessment of each vendor's characteristics, behavior, and
capability.

Market Definition
The Internet of Things (IoT) is a network of sensors (or devices) that constantly monitor the state of
the machine, systems, or infrastructure they connect with. These devices monitor and collect data
related to various attributes of the machine and enable businesses to get better insight into their
manufacturing operations, personal health, or the environment they live/operate in. This IDC
MarketScape focuses on IoT services provided in a B2B or business-to-business-to-consumer
(B2B2C) context only.

IoT categories include the following:

 Connected and intelligent assets: Includes sensors and controllers (power and
communications hardware/links)
 IoT gateway (can be communications hardware or software program): Connects
controllers with the cloud infrastructure and sensors
 Cloud infrastructure: Stores raw and analyzed data
 Application software: Transfers/transmits raw data to on-premises or off-premises
infrastructure
 Analytics software: Includes business intelligence
 Secure edge infrastructure: Processes large data volumes on the manufacturing shop floor
before sending to the cloud
Examples of IoT strategy and consulting services offerings include:

 Business consulting, industry, business processing, operations consulting, and others

related to IoT-readiness status
 IoT road map and ROI strategy
 IoT security strategy
 IoT technology partner recommendations
 Recommendations to use existing infrastructure or rip and replace with new infrastructure
guidance
Examples of IoT systems integration services offerings include:

 Install (commissioning/provisioning), integrate, and connect sensors and edge

infrastructure to networks and applications
 Provide user interface design and product design and deploy platforms/solutions (client
developed, vendor owned or third party) and custom application development services
 Customize and test platforms for integration

Strategies and Capabilities Criteria

This section includes an introduction of market-specific weighting definitions and weighting values.
IDC believes IoT consulting and systems integration services vendors must exhibit the
characteristics shown in Tables 1 and 2, respectively, to be completely successful when crafting a
future IoT services strategy and leveraging existing capabilities to their advantage. The factors
were weighted because IDC believes that some factors are more important than others in
maximizing market opportunity and realizing market success. The current capabilities and future

©2022 IDC #META49097022 14

strategy scores were arrived at based on written response to the RFI from providers in context of
the previously mentioned definitions. This was followed up by subsequent presentations and
discussions regarding the providers' capabilities and strategies for these services and online and
phone meetings that obtained feedback from client references for all the attributes provided in
Tables 1 and 2.

TABLE 1

Key Strategy Measures for Success: GCC Business and Industrial Internet of Things
(IoT) Consulting and Systems Integration Services

Strategies Criteria Strategies Scoring Element Weights (%)

Delivery Strategy Plans to refine/build new competencies to support customers' business 14

Plans to develop new-generation tools, frameworks, and methodologies to deliver

B&IIoT services

End users' rating of vendor's strategy to build/utilize more efficient tools and
methodologies for B&IIoT C&SI services delivery

Portfolio Strategy List of IoT life cycle services (strategy/consulting services, workshops, partner 10
collaboration, look for other buyer, account planning, thought leadership, co-innovate
with customer, build new IP, build scale, acquisition) that vendor plans to offer

Pricing Strategy Plans to offer additional/new pricing models 12

End users' rating of vendor's ability to deliver superior engagement value for B&IIoT
C&SI services

Sales/Distribution Strategy to enhance internal sales capabilities to sell B&IIoT C&SI services 14
Strategy

Partnership strategy to pursue joint sales of B&IIoT C&SI services

Marketing Plans to improve/enhance current B&IIoT C&SI services marketing campaigns 8

Strategy

Customer Strategy to retain B&IIoT C&SI services customers as a long-term company strategy 12
Engagement
Strategy

Customer likelihood of recommending B&IIoT C&SI services vendors to other

customers

Growth Strategy How does the vendor plan to grow its B&IIoT C&SI business (organic/ inorganic) in the 12
GCC region?

List of specific B&IIoT C&SI services that the vendor plans to grow in next 1–3 years

Plans to grow B&IIoT C&SI services revenue/employees in the next three years

Proprietary frameworks/tools planned to increase customer adoption

©2022 IDC #META49097022 15

 TABLE 1

Key Strategy Measures for Success: GCC Business and Industrial Internet of Things
(IoT) Consulting and Systems Integration Services

Strategies Criteria Strategies Scoring Element Weights (%)

R&D Strategy R&D strategy to create new B&IIoT C&SI IP, platforms, and solutions 10

Employee Strategy to hire and retain top B&IIoT C&SI services talent 8
Retention
Strategy

Total 100

Source: IDC, 2022

TABLE 2

Key Capability Measures for Success: GCC Business and Industrial Internet of
Things (IoT) Consulting and Systems Integration Services

Capabilities Criteria Capabilities Scoring Element Weights (%)

Portfolio & Delivery List of all B&IIoT C&SI services offered by the vendor in the GCC region 11

Number of focus verticals for B&IIoT C&SI services in the GCC region

Customer business benefits delivered by means of B&IIoT C&SI services

End users' rating of vendor's overall B&IIoT C&SI services delivery capabilities

Delivery % of B&IIoT C&SI services delivery effort that is currently automated (non-labor 11
Automation based)

End users' rating of vendor in terms of its B&IIoT C&SI services delivery automation

Costing Average bill rate estimates of B&IIoT C&SI services in the GCC region 11

End users' rating of vendor in terms of its ability to deliver value for the price charged

Pricing Models Types of pricing models currently offered by B&IIoT C&SI services in the GCC region 11

End users' rating of vendor in terms of its ability to provide flexible pricing models

Marketing and Marketing channels used for promoting vendor's B&IIoT C&SI services 11
Communication

End users' rating of vendor in terms of its communication/engagement for information

on IoT-specific insights

Sales Capability Number of sales staff selling B&IIoT strategy/consulting/SI services in the GCC 11

©2022 IDC #META49097022 16

 TABLE 2

Key Capability Measures for Success: GCC Business and Industrial Internet of
Things (IoT) Consulting and Systems Integration Services

Capabilities Criteria Capabilities Scoring Element Weights (%)

Percentage of repeat clients reported by vendor for B&IIoT C&SI services due to
better sales engagement

What are the steps that you adopt (for value demonstration) to secure additional/new
budgets for your clients from their management?

Growth Execution YoY growth rate of B&IIoT C&SI service revenues in 2020 11

End users' plans to increase spending with vendors of B&IIoT C&SI services

Innovation/ R&D R&D labs and/or innovation centers across the GCC region to develop B&IIoT C&SI 11
services

End users' rating of vendor in terms of its B&IIoT C&SI innovation capabilities

Talent & Talent Number of IoT strategy, consulting, and SI engineers/delivery team members in the 12
Management GCC in 2020

End users' rating of vendor in terms of the breadth, depth, and scale of relevant
B&IIoT C&SI services talent

End users' rating of vendor in terms of its ability to provide onsite support for B&IIoT
C&SI services when required

End users' rating of vendor in terms of its ability to manage staff turnover during a
B&IIoT C&SI services project life cycle

Total 100

Source: IDC, 2022

LEARN MORE

Related Research
 IDC FutureScape: Worldwide Managed IoT Connectivity Services 2022 Vendor
Assessment (IDC #US48061522, February 2022)
 IDC MarketScape: Worldwide Industrial IoT Platforms and Applications in Energy 2021
Vendor Assessment (IDC #US47956121, June 2021)
 IDC MarketScape: Worldwide Industrial IoT Platforms and Applications in Manufacturing
2021 Vendor Assessment (IDC #US47956021, June 2021)
 IDC MarketScape: Worldwide Unified Endpoint Management Software for
Ruggedized/Internet of Things Deployment 2021 Vendor Assessment (IDC #US46957920,
January 2021)

©2022 IDC #META49097022 17

  IDC MarketScape: Worldwide Business and Industrial IoT Consulting and Systems
Integration Services 2020 Vendor Assessment (IDC #US46120820, March 2020)
 IDC MarketScape: Worldwide Business and Industrial IoT Engineering and Managed
Services 2020 Vendor Assessment (IDC #US46121220, March 2020)
 IDC MarketScape: Worldwide IoT Applications Platforms for Smart Cities 2019–2020
Vendor Assessment (IDC #US43580918, January 2020)
Synopsis
This IDC study represents a vendor assessment of the 2022 GCC business and industrial IoT
consulting and systems integration services market using the IDC MarketScape model. This
research presents a quantitative and qualitative assessment of the characteristics that explain a
vendor's success in the marketplace and can help anticipate the vendor's ascendancy. This GCC
IDC MarketScape study covers 11 vendors, and the evaluation is based on a comprehensive
framework and set of parameters expected to be most conducive to success in providing IoT
consulting and systems integration services in both the short and long term.

"Enterprises should not shy away from asking their provider for help with ROI or other tools that
provide an understanding of the benefits of these implementations. This will assist them in
securing new budgets or extending existing ones. Running a real-world proof of concept or proof of
value with the provider will help establish a business case for such investments. Enterprises
should not look at IoT in isolation; instead, they should consider it a key enabling technology
together with edge, cloud, AI services, AR/VR, and autonomous systems. Explore the technologies
based on the end outcomes." — Program Manager Krishna Chinta, Telecoms and IoT Research,
IDC Middle East and Africa

©2022 IDC #META49097022 18

About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory
services, and events for the information technology, telecommunications and consumer technology
markets. IDC helps IT professionals, business executives, and the investment community make
fact-based decisions on technology purchases and business strategy. More than 1,100 IDC
analysts provide global, regional, and local expertise on technology and industry opportunities and
trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help
our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading
technology media, research, and events company.

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