Serco, a British transport, Defense, and public services provider, has announced its 2023 business outlook for Saudi Arabia, which predicts development in the outsourcing industry, the space sector, fire and rescue services, and the emergence of a one-consultancy approach.
According to Serco Institute, the company’s research arm, 76% of respondents in the Kingdom believed that the government should collaborate with overseas enterprises to improve service quality and cut costs, stating: “The need for delivering improved customer experiences across all fronts, at the same time as increasing flexibility and ensuring cost efficiencies, outsourcing will become paramount for the public and private sectors alike.”
It suggested that the space sector will receive increased attention in the Middle East throughout 2023, notably in the Kingdom. Space exploration has been shown to be an effective catalyst for technological advancement in a number of countries throughout the world. As a result, it will be equally important in this region, as technology transfer and the development of local science and engineering capabilities play an important role in countries’ national goals.
Serco also anticipates a favorable shift toward privatizing fire and rescue services in the Kingdom, driven by generating world-class living conditions through the development of exciting new urban centers of excellence.
76% of respondents in the Kingdom believed that the government should collaborate with overseas enterprises to improve service quality and cut costs
Many organizations have the difficulty of not specializing in fire and rescue services; however, it is a fundamental safety requirement that must be met, so considering outsourcing is becoming a practical imperative for decision-makers. This will gather momentum in 2023, with Serco’s dynamic approach to training allowing it to provide an accredited and certified fire and rescue workforce either through the use of its own training facilities, at its International Fire Training Center in the UK, in the Middle East, or at client facilities.
Greenwashing
The study was also upbeat about growing Environmental, Social, and Governance (ESG) developments in the region. With the recent hosting of the UN Climate Change Conference in Egypt and the upcoming one in the UAE, ESG strategies will become a strategic priority and a business imperative for many enterprises and organizations.
Despite the ubiquity of greenwashing in corporate reporting, there will be a concerted shift toward incorporating ESG indicators as a fundamental component of yearly reporting procedures. This will be driven by two major elements.
To begin with, many employees, particularly the younger generation entering the employment market, choose firms with a clear mission. As a result, individuals need to feel empowered by an attachment to strong business values, and ESG will become a vital element of this fabric in the region moving forward.
ESG strategies will become a strategic priority and a business imperative for many enterprises and organizations
In the case of Saudi Arabia, this means not just setting the highest possible standards, but also creating possibilities for young job seekers. Consequently, strong nationalization rules are critical to ESG in the Kingdom and elsewhere.
Second, the study indicated that there will be a greater emphasis in the region on advisory services to assist various entities and companies in embracing and implementing relevant ESG practices into their organizations, not as a ‘nice to have’, but as a fundamental strategic imperative, as legislation and operating standards will demand a stricter adherence to critical ESG measures.
If these forecasts come true, the Kingdom can expect to make significant progress toward achieving the Vision 2030 blueprint and reinforcing its position as a regional industrial hub and economic powerhouse.
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