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.

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

3d Martin Herron, MHA MacIntyre Hudson
Cybersecurity webinar: how protected are you and your data?

Security Cybersecurity webinar: how protected are you and your data?

1w Emma Smith, Managing Editor
Back to the Future: why financial transformation just hasn’t happened

Technology Back to the Future: why financial transformation just hasn’t happened

1w Workday | Sponsored
GDPR: Don’t forget the human touch

Security GDPR: Don’t forget the human touch

2w Neil Patrick, Director of GRC and Centre of Excellence EMEA for SAP
5 key tech innovations helping accountants transform their businesses

Accounting Software 5 key tech innovations helping accountants transform their businesses

3w Heather Darnell, Founder of Ask the BOSS
HMRC scaling back digital projects to ‘release project capability to EU Exit work’

Brexit HMRC scaling back digital projects to ‘release project capability to EU Exit work’

3w Alia Shoaib, Reporter
What is the role of governance, compliance, and control in financial transformation?

Corporate Governance What is the role of governance, compliance, and control in financial transformation?

4w Workday | Sponsored
Grant Thornton joins with Immersive Labs to increase cyber talent

Career Grant Thornton joins with Immersive Labs to increase cyber talent

1m Lucy Skoulding, Reporter