Asia/Pacific CRM market forecast to 2007
The Asia/Pacific region's CRM solutions market totalled some US$1.2 billion in 2002, and is forecast to expand to more than US$3.4 billion in 2007, showing a five-year compound annual growth rate (CAGR) of 22.8%, according to market intelligence firm, IDC.
In its recently published report, Asia/Pacific CRM Solution Spending Dynamics, 2003-2007, IDC expects notable investments to come from countries such as Australia, the People's Republic of China (PRC), and Korea, as well as strong growth prospects coming from vertical markets including infrastructure services and the public sector.
IDC has observed that organisations in the region are increasingly investing in customer relationship management (CRM) solutions to create, manage, and assess customer relationships.
Market drivers Over the next few years, according to IDC, CRM solutions will become an important investment priority for enterprises in the region as customers continue to demand more integrated and consistent data and services across multiple touch points and platforms. Another key investment driver is the common strategy of reducing the number of live agents to save costs and to increase the speed, accuracy, and volume with which information is accessed and delivered.
While CRM is technology-based, the solution itself is very much business process driven. From a strategic business investment point of view, to be able to fully explore and understand the breadth and depth of the relationships an organisation has with its so-called customers is fundamentally vital to competitive advantage and business survival.
"In a monopolistic environment, CRM may not matter so much. However, as industries around this region continue to become liberalised - including communications, transportation, utilities, financial services and distribution - the evolution toward customer-oriented processes is necessary to spur growth and prosperity," explained Robin Giang, IT investment and strategy research manager for IDC Asia/Pacific.