IDC: Opportunities are emerging within the worldwide, U.S. CRM services marketplace
Framingham, MA — April 25, 2005 — According to a recent forecast from advisory firm IDC, growth for the customer relationship management (CRM) services market is likely to be modest to moderate over the next 18 to 24 months and moderate to strong over the full-five year term ending in 2009.
The CRM services market has been revitalized over the past year due to a recovering economy, higher-than-expected business profits, a trend toward more complex consulting and systems integrations contracts, and a flourishing interest in transformation outsourcing, IDC said.
"In light of the current economic climate, opportunities are increasingly emerging within the worldwide and U.S. CRM services marketplace," said Brian Bingham, director of CRM and Customer Care research at IDC. "Being attuned to cost containment, [return on investment (ROI)], and business process optimization, however, must be the mantra if service providers plan to thrive and succeed."
The top vertical industries for CRM services revenues in the U.S. will continue to be banking, communications and media, and discrete manufacturing. While North America lost a small market share in 2004 to Western Europe and Asia/Pacific, the region will remain the leader in market revenue through 2009 with the United States continuing to account for almost half of the worldwide market.
IDC recommends the following actions for successful vendors in the areas of CRM services: deliver visionary incrementalist services; know the potential and applicability of Web services; facilitate business process outsourcing (BPO) through a standalone, managed service or partnership-led offering; and unfold the potential of analytics and business intelligence through leveraging analytical CRM in relation to operational CRM.
The IDC study, "Worldwide and U.S. CRM Services 2005-2009 Forecast and Analysis," presents the annual update to the five-year forecast for the worldwide and U.S. market for CRM services. The document analyzes the impact of recent trends and events influencing the CRM services opportunity through year-end 2004 as well as their impact on the five-year forecast. Particular attention is paid to the near-term years: 2004, 2005, and 2006. The study also provides future outlooks and guidance for vendors in the various areas of CRM services.