With Atos Partnership, ZainTech Is Positioning Itself to Capitalize on Next-Gen Enterprise Services Boom in MENA

I. Patel

Summary Bullets:

  • After it consolidated its digital and enterprise divisions into ZainTech in late 2021, the deal with Atos is a signal of Zain Group’s strategic direction.
  • The partnership with Atos is part of Zain’s strategy to allow ZainTech to enter into deals with major enterprise vendors and grow organic revenue by selling next-gen enterprise services to regional clients.

Zain Group announced a partnership with French technology company Atos to provide digital transformation services to ZainTech enterprise customers in the Middle East and North Africa (MENA) region. The deal comprises the provision of the following three services: a round-the-clock managed cybersecurity solution, a cloud solution to help businesses deliver next-gen digital technologies, and an end-to-end video analytics platform for customizable AI models (e.g., Atos Computer Vision Platform).

ZainTech, the enterprise and ICT wing of Zain Group, is working increasingly to position itself to address the evolving needs of the B2B market. The deal primarily targets businesses and government in its home market of Kuwait, followed by other markets where it operates. The opportunity to win new customers, as well as upsell to existing business and government clients, will allow ZainTech to penetrate the enterprise services ecosystem. This is all part of Zain’s 4SIGHT strategy coming to fruition, as the group plans to target several growth areas in response to shifting market dynamics.

The major Middle Eastern telecoms operators are in a race to tie down as many enterprise customers as possible, in what will be a period of organic revenue growth in the digital and corporate services sector. A common theme across the likes of Zain, Etisalat, STC, and Ooredoo has been the ramping up of B2B services, targeting local and regional businesses, with an array of enterprise services ranging from AI and ML to security, edge, and cloud services – and beyond. These will be underpinned by the various country visions of the Gulf Cooperation Council states as they seek to rapidly shift from being primarily energy export economies to service economies.

Notwithstanding the potential restructuring of the Atos business, it is yet another major Western digital services vendor to cut a deal with a legacy Middle Eastern telecoms operator to help reshape it into a technology services provider.

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