Year 2000 Problem Will Not Halt Growth Of The ERP Services Market

EDP Weekly's IT Monitor, Sept 7, 1998

According to two new studies by International Data Corp., the worldwide ERP consulting and integration services market is expected to expand at a compound annual growth rate of 17 percent, while the client/server segment will exceed a CAGR of 25 percent over the next five years. IDC estimates the US ERP education and training services market was $770 million in 1997 and will exceed 30 percent growth over the next five years.

ERP application suites are popular in businesses for offering an integrated view and reporting of information from all areas of an enterprise. Such applications also reduce costs, improve business processes as well as replace legacy, non-year-2000-compliant custom applications. Training must be conducted as an integral part of the ERP project, and the earlier the knowledge transfer occurs in the implementation process, the better the chances for successful ERP adoption.

According to IDC, ERP training market growth will be fueled by the success of ERP applications, as well as by the strategic recent move of leading ERP vendors into the mid-market and the end-user training arena. To succeed in these two new market segments, IDC says ERP vendors must offer flexible technology-based alternatives to their traditional technical classroom training programs.

For implementation to be successful, IDC recommends that ERP services providers and their clients "have a clear understanding of the business objectives of the project, define business processes in the context of package chosen, manage expectations, obtain executive sponsorship and internal communication, establish clear project plans and responsibilities and build training as an integral part of the project."

The new reports, The Enterprise Resource Planning Services Markets and Trends, 1995-2002 (IDC #16499), and The ERP Training Report: Trends and Opportunities in the US Market (IDC #16899) are available for purchase by contacting Cheryl Toffel at (508) 935-4389 or by e-mail at ctoffel@idc.com.