CRM Market Grows 12.5 percent in 2008

By siliconindia   |   Thursday, 16 July 2009, 17:23 IST   |    1 Comments
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CRM Market Grows 12.5 percent in 2008
Bangalore: Customer Relationship Management (CRM) market across the world generated revenue of $9.15 billion in 2008, a 12.5 percent increase from 2007 revenue of $8.13 billion, reports Gartner, an information technology research and advisory company. Sharon Mertz, Research Director, Gartner says, "Despite financial market volatility, the worldwide CRM market enjoyed its fifth consecutive year of double-digit growth as businesses continued to invest in solutions across all sub segments." Software as a Service (SaaS) continued to drive the market forward, representing nearly 20 percent of total CRM software market revenue in 2008, up from just over 15 percent in 2007. SAP continued to be the market leader accounting for 22.5 percent of worldwide CRM software revenue in 2008 followed by Oracle and Salesforce with 16.1 and 10.6 percent respectively. Microsoft experienced the strongest growth rate among the top five vendors, as its revenue increased by 75 percent in 2008. While the CRM market remains highly concentrated in western economies, emerging markets are growing rapidly and now account collectively for nearly 16 percent of the worldwide market, up from approximately 13.8 percent in 2006. Gartner observed that most vendors remain cautiously optimistic for continued growth for the worldwide CRM market. Mertz says, "Investment in technologies, which enhance productivity, provide better visibility and insight into customer behaviors and grow online commerce, sales and marketing activities are expected to grow through 2010. However, while we expect overall CRM growth prospects to remain positive in 2009, we do anticipate them declining to mid single-digits due to continued economic uncertainty."

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