CRM Market Bounces Back To Growth

The customer relationship management (CRM) applications market returned to positive growth in 2004 according to a study by IDC, the Framingham, Ma.-based consulting firm. In its study titled, "Worldwide CRM Applications 2004 Vendor Shares: Let the Games Begin" IDC reports that companies are intent on implementing CRM applications in 2005.

"The CRM applications market turned an important corner in 2004," said Mary Wardley, vice president of CRM Applications research at IDC. "The growth of the relative newcomers as well as new functionality and licensing models from established vendors have rejuvenated the market and turned the spotlight on true customer need. End users are the winners in this shift as the market now focuses on business benefits rather than functionality for the sake of functionality."

Siebel, Oracle, and SAP occupy the top positions in the market with Seibel capturing 10.7% of the market. Viewing vendors based on geography, North America is the largest region within the CRM applications market, accounting for 60.3% of worldwide revenue in 2004, with Western Europe representing 28.8%.

The study also concluded that on-demand products are generating market interest and will continue to grow in the future. CRM implementations that involve flexible process flows versus discrete functions are more popular. And users are expressing a preference for analytical capabilities embedded within CRM applications.

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