Processing .....please wait.. 
The article has been forwarded.... 
News >> Technology >>
CRM market in India sees healthy growth
By siliconindia
|
Thursday, 20 February 2003, 20:30 IST |
20 Comments
BANGALORE: The CRM market in India has witnessed a healthy growth and expects the CRM software market to grow at a CAGR of 40% to reach Rs 188.4 crore in 2006, says IDC India. The CRM services market is expected to grow even faster at a CAGR of 53% to reach Rs 377 Crore by the year 2006.
In India, CRM is in the initial phase when there would be high demand for consulting services in order to bring a fit between the business and CRM application and also around deployment and implementation of the same. Organizations have started using Service Quality as a key differentiator and are using it as their USP to increase revenues and to gain market share and thats precisely the reason why CRM has been hot in service verticals like financial and telecom services.
According to Kapil Dev Singh, Country Manager, IDC India, "CRM initiatives in most organizations are driven by the actual users (Customer Support Department, Sales Function, etc.). Further, the implementation cycles for CRM are shorter and automation of CRM related processes have a direct impact on a companys profitability. Therefore more and more Indian enterprise are expected to invest in CRM solutions to provide improved services to the customers and drive CRM market."
This is supported by the fact that 4 out of 5 companies are spending on modular CRM (i.e point solutions). According to IDCs end-user survey conducted among 200 organizations, nearly 81% stated that they are using modular CRM, while 19% stated that they are using complete CRM package. The CRM applications that are primarily used are marketing automation closely followed by customer care and support automation.
According to the survey, the key business drivers for investing in CRM solutions are customer retention & loyalty and improving cost efficiencies. Another important reason that emerged for CRM adoption was to make sales force management more effective. This shows that Indian businesses are beginning to feel the heat from increasing competition and are actively trying to retain their loyal customer base.