The Market for eProcurement Applications Is Hot and Getting Hotter, According to IDC
FRAMINGHAM, MA – MARCH 28, 2001 – The market for eprocurement applications is getting hot, with most vendors just beginning to hit their strides. Turbo-charging this market is increased demand for high-performance applications, especially those that can handle a myriad of mission-critical functions such as strategic sourcing, supplier relationship management, and direct materials procurement. According to IDC, eprocurement applications sales, which jumped a staggering 167% in 2000, will skyrocket to $9.7 billion in 2004. By comparison, they were $47 million in 1997.
"eProcurement applications have become one of the most sought-after Internet products by enterprises that want to lower their costs, improve operations through real-time data collection and enhanced workflow, and strengthen relations with trading partners to boost product quality and output," said Albert Pang, research manager of IDC’s eCommerce Applications program. "As corporations continue to roll out their B2B strategies with a quick-to-market mentality – opting for off-the-shelf eprocurement applications to speed implementations, demand for eprocurement applications will get even stronger."
However, IDC believes competition will be stiff. Currently, more than 200 vendors have been shipping eprocurement applications. This number is expected to increase in the coming months as new players enter the market with second-generation software to address requirements from users to automate complex business processes and integrate legacy systems.
According to IDC, brutal market forces resulting from slow emarketplace adoption and general skepticism over the long-term viability of B2B ecommerce sites could subject eprocurement application vendors to the most stringent test. Those that survive and thrive in this market will need to ride the wave of eprocurement adoptions among large and small customers, sustain their growth through innovative products, maintain deft marketing maneuvers, and build effective business alliances. "The real winners will be those that smooth over the adoption of complex technologies while shielding users from the complexities," Pang said.
IDC’s recently published report eProcurement Applications Market Forecast and Analysis, 2000-2004 (IDC #B23837) analyzes the market for eprocurement applications. This report is divided into the following sections: eprocurement buy-side applications, eprocurement sell-side applications, emarketplace applications, and eprocurement content applications. Forecasts are provided through 2004. Key market trends are discussed. Pricing data and customer lists of major vendors are identified. To purchase this report, contact Cheryl Toffel at 1-800-343-4952, extension 4389, 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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