IDC Predicts Strong CRM Growth by 2005
Spending is expected to increase from $61 billion in 2001 to $148 billion in 2005, surpassing overall IT services growth.by eCRMGuide.com Staff
IDC, provider of global research with local content, makes a promising prediction about worldwide customer relationship management (CRM) solutions. IDC forecasts that CRM industry spending will increase at a compound annual growth rate (CAGR) of 25 percent -- from $61 billion in 2001 to $148 billion in 2005. This growth surpasses the expected budgets of the overall IT services market, which shows a 2000-2005 CAGR of 12 percent.
The bulk of the spending can be associated with CRM outsourcing/operations management, which accounted for $32 billion in revenue in 2000. Spending in that area is expected to increase to $82 billion in 2005. CRM training is forecasted to be another high flyer, exceeding $2.9 billion in 2000 and growing to $11 billion by 2005.
"CRM's solid performance despite a weakening economy can be attributed to the business benefits and cost savings it generates for customers," said Jocelyn Young, manager of IDC's CRM Services research program. "As companies need to justify their e-business investment, they will look to CRM solutions as a key means to increase e-business return on investment."