IDC Expects Competition Within the CRM Services Market to Heat Up

FRAMINGHAM, MASS., MARCH 9, 2000 — The customer relationship management (CRM) services competitive landscape is about to get much more crowded. IDC continues to see a variety of vendors from diverse backgrounds setting up stakes in this land of opportunity — an opportunity that will approach $90 billion worldwide by 2003, more than 2.5 times larger than it was in just 1998.

IDC divides the CRM competitive landscape into the following categories based on a vendor's heritage: business and IT consultants, technology owners, telecommunications service providers/carriers, systems integrators, CRM outsourcing providers, training vendors, and emerging players responding to CRM and ebusiness opportunities.

"Customer relationship management solutions will increasingly encompass a broader array of activities within the framework of a client's overall business," said Katrina Menzigian, program manager for IDC's Customer Relationship Services research. "As a result, CRM service vendors will experience increasing competition from a variety of existing and emerging players that are moving away from their traditional business lines to capture new opportunities in the CRM space."

Customer relationships are becoming more important to businesses, and as a result, businesses are turning to service vendors who can help them manage and leverage these relationships. CRM has historically been associated with front-office activities such as sales, marketing, and customer support. However, this view is now expanding to encompass back-office applications such as data marts and business intelligence as well.

"Technology is increasingly being perceived as the seamless integration of products and services that enables new approaches to business activities and remodels the ways in which people work and interact with one another," Menzigian said. "The key to success in the CRM marketplace will be service providers' ability to integrate technology solutions that provide clients with distinct competitive advantages."

Download IDC's Free Bulletin

IDC's new bulletin, A Competitive Landscape of the Evolving CRM Services Market (IDC #B21130), examines competitors and their positioning in the CRM services market. The bulletin includes IDC's 2001 and 2003 worldwide, U.S., and European forecasts for CRM services revenues, thoroughly defines CRM, and discusses the seven categories of vendors competing in the market. Additionally, the bulletin analyzes major trends occurring in the market and makes recommendations for CRM service providers. The bulletin can be downloaded at no charge from http://www.idc.com/data/services/content/offer/crm/.

About IDC

IDC delivers dependable, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and technology trends and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.

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