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CRM Solutions Market Returns to Positive Growth, Finds IDC

  • 23 June, 2004 14:35

<p>NORTH SYDNEY 23rd June 2004 – In a new IDC study titled “Australian Customer Relationship Management Solutions 2004-2008 Forecast", IDC estimated the Australian Customer Relationship Management (CRM) Solutions market was valued at A$426.1 million in 2003 of which CRM Software accounted for A$150.1 million and CRM Services at A$276 million. By 2008, the Australian CRM solutions market is projected to reach A$563.1 million, a 5.7% CAGR through the forecast period from 2003 to 2008.</p>
<p>Australian CRM Solutions Market 2003-2008 (A$mil)
CRM Software
2003 – 150.1
2008 – 212.1
CRM Services:
2003 – 276.0
2008 – 351.0
Total CRM Solutions:
2003 – 426.1
2008 – 563.1
Source: IDC Q1, 2004</p>
<p>“IDC’s CRM study found that the market for CRM solutions in Australia continues to experience moderate growth, despite continued constrained end-user spending. In fact, this market is undergoing rapid maturation as end-user demand for robust solutions are converging with increasing software sophistication and improved consulting and systems integration services delivery and methodologies from IT services firms” said Bharati Poorabia, Senior Analyst at IDC Australia.</p>
<p>According to IDC, the following will be the contributing factors behind further investments in CRM solutions in Australia:</p>
<p>* At present, businesses have clearly identified the requirements for CRM project initiation, namely the need for the project to aid in cost reduction/containment primarily through improvements in service delivery, profitability and productivity, to demonstrate a positive ROI over the short and long term, and to facilitate an improvement in business operations for internal and external processes related to customers. Services firms will have to continue to monitor these primary motivators and adjust the level of importance as market conditions change.</p>
<p>* IT services firms will have to de-emphasise the technology aspect of CRM in favour of business process and vertical market expertise as a means of retaining and enhancing business consulting services opportunities in the face of direct competition from CRM software vendors with application implementation capabilities and aspirations.</p>
<p>* The continued integration of multiple enterprise application functionality will continue to change the CRM services and application landscape. eCommerce functionality is rapidly becoming integral to a number of different enterprise applications and the value of Business Intelligence (BI), analytics, and Knowledge Management (KM) tools directly integrated with CRM solutions is also becoming increasingly important.</p>
<p>* CRM solution firms are well positioned, based on their application and business process expertise, to lead the market from this perspective. However, these firms will be required to drive the market towards integrated (application vendor-agnostic) solutions adoption in order to satisfy customer demand.</p>
<p>"Vendors will need to increase the clarity and documentation of their ROI arguments as end-user organisations come to the negotiating table with clear project goals and a management requirement to demonstrate a clear cost/benefit argument" added Ms Poorabia.</p>
<p>To purchase this document, please call the IDC sales team on (6-12) 9925-5300 or email</p>
<p>For press enquiries please contact:
Bharati Poorabia
Senior Analyst, Enterprise Applications
Phone: 61 2 9925 2257</p>

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