Wednesday, February 23, 2011

Survey Shows CRM Software Spending Is Expected to See the Largest Increase of all Application Software Markets

Spending on customer relationship management (CRM) software is expected to see the largest increase of all the application software markets worldwide in 2011, according to a survey by Gartner, Inc. Overall, 31 percent of respondents expect an increase in application software spending in 2011.

In comparing their 2011 fiscal budgets with 2010, 42 percent of survey respondents indicated that they expect to increase spending on CRM in 2011, compared to 39 percent on office suites and 36 percent on enterprise resource planning (ERP), which ranked second and third, respectively.

Gartner conducted an expansive primary research survey of more than 1,500 IT leaders of organizations in 40 countries, which concluded in July 2010. The goal was to determine software spending allocations for IT budgets in 2010 and predictions for 2011.

Gartner added that buyers of CRM continue to focus on investments that promote customer retention and enhance the customer experience, and they are increasingly interested in technologies that encourage development of customer communities and social networks. SaaS adoption continues to be a key driver. SaaS within the CRM industry is expected to exceed $4 billion in total software revenue in 2014, representing more than 32 percent of the overall CRM market. Marketing automation remains the market segment with the strongest growth, with the greatest demand coming from campaign and lead management and analytics.

Worldwide application software spending is expected to increase 31 percent in 2011, up 9 percent from last year, and emerging markets are planning for higher budget growth. Asia/Pacific is expected to have the largest increase, at 37 percent in 2011, up from 14 percent growth last year, followed by Latin America and EMEA showing an increase of 35 and 27 percent in 2011, respectively.

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