IDC Forecasts $148 Billion in CRM Service Revenues by 2005
FRAMINGHAM, MA – JUNE 12, 2001 – The worldwide customer relationship management (CRM) services market is boasting solid growth. According to IDC, revenue from this industry will increase at a compound annual growth rate (CAGR) of 25%, from $61 billion in 2001 to $148 billion in 2005. This growth far exceeds that of the overall IT services market, which shows a 2000-2005 CAGR of 12%.
"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 ebusiness investment, they will look to CRM solutions as a key means to increase ebusiness return on investment."
IDC believes the changing economic environment is presenting a timely opportunity for service firms to build sound messaging about the value of CRM solutions. "Helping clients rethink their CRM strategies during the next 12-18 months will provide significant opportunities for service firms to position their offering as a means for long-term business success," Young said.
According to IDC, CRM outsourcing/operations management occupies the largest portion of the CRM services market, accounting for $32 billion in revenue in 2000. It is expected to surpass $82 billion in 2005. The market for CRM training performed solidly in 2000, exceeding $2.9 billion, and is expected to eclipse $11 billion by 2005.
IDC believes addressing clients’ needs for shorter project phases and earlier visible results, helping clients identify and think through the business process and organizational changes accompanying any CRM initiative, strengthening customer data integration expertise and methodologies, and helping clients quantify ROI and develop ongoing measurement processes are key elements for players offering CRM services.
In Worldwide CRM Services Market Forecast and Analysis, 2000-2005 (IDC #B24684), IDC analyzes the CRM services market from a number of different angles, including service activity, geographic region, vertical industry, and CRM segment. Forecasts are provided by region through 2005. Also provided is a list of the top 10 vendors in the CRM consulting and implementation and ecustomer care outsourcing services markets worldwide. To purchase this report, contact Jim Nagle at 1-800-343-4952, extension 4549, or at firstname.lastname@example.org.
IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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