Riyadh, KSA-
Sage Software, the leading global supplier of ERP, CRM, and HRM solutions to medium and large organisations, announced today the appointment of Conti-tech, a leading IT solutions company in the Kingdom of Saudi Arabia, as its first X3 business partner in the Kingdom. Conti-Tech and Sage will address the needs of the manufacturing sector that has witnessed a tremendous growth during the past few years, as the Kingdom seeks to reduce its independence on the oil sector by diversifying its economic activity. According to the Jeddah Chamber of Commerce and Industry (JCCI) there are 3,986 manufacturing industries in Saudi Arabia with a total investment of SR306 billion.
“Research house IDC estimates that IT systems spending will reach USD 3.7 billion in 2008. As the Saudi market for technology solutions is expanding and the manufacturing sector is growing remarkably, we needed a partner that can help promote our solutions and support our presence in Saudi Arabia which is a long-standing commitment to this vital market,” said Mr. Marc Van der Ven, managing director, Sage Software ME. “We saw in Conti-tech the perfect business partner for our solutions based on their long and extensive experience in the Saudi Eastern Province and their specific knowledge of manufacturing information systems. Conti-tech will be able to provide local support for the Sage ERP X3 software which is designed to cater to the demands of the fast growing manufacturing sector.”
A study done by the Central Department of Statistics, of the Saudi Ministry of Economy & Planning, showed that the total value added achieved by the manufacturing industries increased from the level of SR15 billion in 1974 to about SR92.6 billion at the end of 2006. The study revealed that the rate of the manufacturing industries’ growth continued to increase throughout this period, at an average of 6% annual growth rate, which is considered the highest among the other economic sectors. Owing to the substantial growth achieved by the manufacturing industries during this period, the contribution of the sector in the country’s GDP has increased from 4.1 % in 1975 to 11.6 % at the end of 2006. Parallely, the contribution of the manufacturing industries sector in the non-oil GDP increased from 7.8 % in 1975G to 17.3% in 2006.
“With the expansions and present boom happening in KSA especially in the manufacturing sector, we have noticed a growing demand for ERP solutions.” said Prem Prakash, general manager, Conti-tech. “We realised that a lot of clients are looking for a reliable solution for their companies with their critical requirements of production, scheduling, in- time delivery, maintenance, quality control, inventory, warehousing, and purchasing taken into considerations. During our extensive research, we found Sage ERP X3 was the right answer for all the needs because most companies require a reliable solution which is affordable and meet well within their budget.”
According to Madar Research the Enterprise Resource Planning (ERP) Software market in the GCC will hit USD 300 million by the end of 2009, as there is a rising demand within the regional enterprise and SMB sectors. Furthermore, the report has estimated that the market will witness a compound average growth rate of 14 percent in the next five years. ERP spending in the GCC is expected to experience a more moderate growth higher than the projected world average, which is between 6 per cent and 9 per cent.
“We believe that our work with Sage will provide us with an excellent opportunity to supply the demands of the manufacturing sector. We shall take this alliance forward and penetrate into all regions of Saudi Arabia based on the response we receive from various manufacturing companies.” added Prem. “Most of the solutions that exist in the market are not customised for the manufacturing industry whilst Sage ERP X3 has an edge over them for being 100% solution for this segment. We are planning to conduct a few seminars for organisations in order to raise the awareness of this solution and what it can offer.”
