IDC Finds CRM Services Market Revitalized and Ready For Increased Growth

Business Wire, April 25, 2005

FRAMINGHAM, Mass. -- According to a recent IDC forecast, 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. The CRM services market has been revitalized 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 U.S. 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 optimization, however, must be the mantra if service providers plan to thrive and succeed."

The top vertical industries for CRM services revenues in the U.S. will continue to be banking, communications and media, and discrete manufacturing. While the North America lost a small market share in 2004 to Western Europe and Asia/Pacific, the region will remain the leader in market revenue through 2009 with the U.S. 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

--Unfold the potential of analytics and business intelligence through leveraging analytical CRM in relation to operational CRM

The IDC study, Worldwide and U.S. CRM Services 2005-2009 Forecast and Analysis (IDC #33112) presents the annual update to the five-year forecast for the worldwide and U.S. market for CRM services. The document analyzes the impact of recent trends and events influencing the CRM services opportunity through year-end 2004 as well as their impact on the five-year forecast. Particular attention is paid to the near-term years: 2004, 2005, and 2006. The study also provides future outlooks and essential guidance for vendors in the various areas of CRM services.

To purchase this document, call IDC's Sales hotline at 508-988-7988 or email sales@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.