Across the world, new technology and shifts in consumer behaviour are leading to rapid changes in a wide range of sectors. The Gulf is no different in this regard – after all, the GCC has a young, technology-adept and affluent population, with 200 million users spending an average of 6 hours per day on the internet.

Given this background and strong underlying drivers of economic expansion, it is no surprise that growth in the MENA region’s ICT sector is occurring at a rapid pace. By 2020, the sector is expected to have expanded by 10 percent per annum, whilst IT spending in the Middle East is estimated to have reached over USD 200 billion in 2015.

This growth is being driven not only by demand from consumers but also by pressure on businesses to make investments in the technology sector that can help to make them more competitive. Major players across the region are putting pressure on companies to provide world-class services to their customers. To succeed, businesses are forced to operate more and more efficiently.

In some instances, this competition has been enhanced through specific government reforms. For example, in 2003, Bahrain introduced the Telecom Regulatory Authority (TRA), and looked to open up the sector to competition as part of the country’s Vision 2030, which lists economic diversification as part of its priorities . Prior to deregulation, this sector was dominated by one government-owned entity, now there are around 20 operators. This competition has helped to spur greater efficiencies, greater innovation and, in turn, faster growth.

Competition is also spurring increasing investment in areas such as shared services, as businesses look to improve their efficiency and quality of customer service. For some local companies this may mean a move to increase efficiency in order to compete against their rivals. For multinationals, it may mean servicing more Gulf customers’ needs from within the Gulf, rather than from other centres, as the region becomes a more significant part of their operations.

We have already seen interest from large firms such as banks, telecoms businesses and international airlines, right down to SMEs and family-owned businesses. This is not a phenomenon limited to companies based in the region. For example, Bahrain now plays host to offices and ICT and outsourcing facilities that belong to companies including Microsoft, Huawei, Tata Consultancy Services and Amazon Web Services (AWS), amongst others. Specific Business Process Outsourcing companies operating out of Bahrain include SABRE Corporation, Invita, Silah, GEMS and Gulf CX. Overseas services centres located in Bahrain include TechMahindra, TCS and Mindtech.

Competition is spurring increasing investment in areas such as shared services, as businesses look to improve their efficiency and quality of customer service

These trends represent an exciting opportunity for international investors – but one of the first questions asked by a business investing in the region is which location within the GCC countries is the right one to access the opportunities that the market provides?

Of course, cost will inevitably be an important element of this decision. The GCC is not a low-cost market, but there are marked differences between markets in the cost of operation. For example, costs of operating in Bahrain can be between 30-40 percent lower than other regional locations such as Qatar and Dubai. Another key factor in establishing operations is the potential to fully own the business. In Bahrain, companies are allowed 100 percent ownership and management in most sectors.

However, the decision is not simply a matter of cost or ownership of a business. Companies are also focused on the quality of the customer experience. After all, poor service will put you at a competitive disadvantage to your rivals. For example, manning a customer support desk anywhere in the region cannot be done without the essential local language skills and cultural understanding required to appeal to local customers. Even aspects that outside investors may overlook, such as the dialect and accent of telephone operators, can have a big impact upon success in the Gulf. The availability of a skilled, bilingual local workforce can play an important role in business continuity and minimising disruption and cost.

In Bahrain, the availability of strong Bahraini employees both through short-term agency staffing and long-term employment provides greater operational stability and sustainability. There are currently 12,000 Bahrain is employed in the ICT sector and with the quality of education and training always improving, this number is growing as new graduates enter the workforce year on year.

Prior to my current role, I spent nearly three years in Mumbai, so I have seen at first-hand the talent and innovation within the Indian ICT sector. Seeing the opportunities and the demand within the Gulf at the moment, I am convinced that Indian businesses and their expertise have the potential to play a large role as companies around the region look to invest in their ICT and drive improvements to their efficiency and quality.

It is an exciting time in the Gulf and it could be an exciting time for the international businesses that help it to grow.