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Solid growth forecast for CRM and contact centre apps

29th Jun 2011
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The solid recovery experienced by the CRM applications market in 2010 will continue this year, growing 7.6% to hit $18 billion in revenue terms, according to IDC.

As a result, the market researcher indicated that three out of four of the sector’s sub-segments would experience above average growth. The marketing and sales application spaces were forecast to grow at 8.8% and 8.6% respectively, while sales of customer service packages were likewise predicted to grow at 8.2%.

Even the contact centre application area, which experienced a modest decline in 2010, was anticipated to rebound to demonstrate growth rates of 5.4% year-on-year.

Mary Wardley, IDC’s program vice president for CRM applications, said: "Despite its relative market maturity, CRM applications represent a vibrant market opportunity. As a segment, CRM applications continue to evolve. With technology enhancements such as social networking and socialytics, today’s CRM applications are helping organisations deliver the next level in intimacy and insight."

This was important because in an "interconnected world of global commerce", the customer relationship and experience would act as the key differentiators, she added.

The firm’s ‘Worldwide Semi-annual Customer Relationship Management Applications Tracker’ likewise revealed that the UK, Germany and France would see customer service application revenues jump by 8.2% over the year ahead.

But it also made it clear just how fragmented the market still is. Outside of the top three vendors – Oracle, SAP and Salesforce, which generated sales of more than $1 billion - some 19 others accounted for a mere $100 million or 35% of the total market last year.

Oracle held the top spot with a global share of the sector of 11.8%, while Salesforce saw the strongest year-on-year growth of 27.4%. In 2010, the total market grew by 6.2% to $16.5 billion.

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