Growth for the customer relationship management (CRM) services market is likely to be modest to moderate over the next 18-24 months, and moderate to strong over the full-five year term ending in 2009, according to a recent IDC market forecast.
IDC says that the CRM services market has been revitalised over the past year due to a recovering economy, higher-than-expected business profits, a trend toward more complex consulting and systems integrations contracts, and a flourishing interest in transformation outsourcing.
"In light of the current economic climate, opportunities are increasingly emerging within the worldwide and US CRM services marketplace," said Brian J Bingham, director of CRM and customer care research at IDC. "Being attuned to cost containment, ROI, and business process optimisation, however, must be the new mantra if service providers are going to thrive."
The top vertical industries for CRM services revenues in the USA will continue to be banking, communications and media, and discrete manufacturing. While the North America lost a little market share in 2004 to Western Europe and Asia/Pacific, the region is expected to remain the leader in terms of market revenue through to 2009, with the US continuing to account for almost half of the worldwide market.
IDC recommends the following actions for successful vendors in the areas of CRM services:
- Deliver visionary incrementalist services;
- Know the potential and applicability of web services;
- Facilitate business process outsourcing (BPO) through a standalone, managed service or partnership-led offering;
- Realise the potential of analytics and business intelligence by using analytical CRM in relation to operational CRM.
The study, entitled 'Worldwide and US CRM Services 2005-2009 Forecast and Analysis', represents this year's update of the company's five-year forecast for the worldwide and US market for CRM services. It analyses the impact of recent trends and events influencing the market, along with their impact on the five-year forecast. Particular attention is paid to the near-term years (2004 to 2006). The study can be obtained directly from IDC.