TechnologyCRM spending to rebound in 2003

CRM spending to rebound in 2003

Spending on customer relationship management software will rebound dramatically next year according to analysts.

A report into CRM spending predicted that the economic slowdown, blighting much of the world, would see 2002 as a fairly flat year. Aberdeen predicted a rise of only 2% on last year.

But according to Denis Pombriant, managing director of Aberdeen’s CRM group, 2003 will see a big leap in spending. ‘Double-digit growth should resume in 2003 and we expect CRM spending to reach $19.6bn by 2005,’ he said.

The prediction matches that of AMR Research, who believe that 2003 will see a 16% growth in the worldwide CRM market. AMR analyst Lindsey Higg said that CRM spending will ‘peak in 2004’.

The growth will be fuelled by purchases from mid-sized enterprises, said Pombriant.

This will be a fillip to the channel, where relationships have been built over a number of years.

It is also the area that Microsoft has been focusing its CRM effort on. Their presence in he market will alert smaller firms to the possibiities, said Kevin Lucas, senior analyst, AMR Research.

But Higg cautioned that the ‘vast majority of CRM sales are through direct sales’. According to AMR Research, 77% of all CRM sales are done direct.AMR predicted that the public sector could also be a valuable source of new CRM sales.

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