According to Gartner, the world’s leading information technology research and advisory company, Customer Relationship Management (CRM) looks set to eclipse Enterprise Resource Planning (ERP) global market share by 2017.
In its latest report, ‘Gartner Forecast: Enterprise Software Markets, Worldwide, 2012-2017, 2Q13 Update’, CRM – forecast as a $20.6B worldwide market in Q1 this year – could increase substantially to $36.5B by 2017. Moreover, CRM appears to be setting the pace for projected growth amongst all enterprise software categories, as the graph below demonstrates:
Compare Gartner’s Q1 and Q2 CRM forecasts and the sheer acceleration of this growth becomes apparent. CRM nets a 56% increase in Compound Annual Growth Rate (CAGR) in the forecast period (2012-2017) from 9.7% in the forecast period to 15.1% in the latest Q2 forecast.
- In the latest forecast, global enterprise software spending 2013 is projected to be $304B, $25B up from the Q1 forecast. According to Gartner, accelerating market growth is driven by greater demand for CRM, supply chain management and security.
- ERP spending worldwide is projected to grow from $26.03B in 2013 to $34.3B in 2017, attaining a CAGR of 7% in the forecast period 2012-2017.
The key takeaway from Gartner’s latest forecasts must surely be that organisations are recognising the value of their customer relationships and are investing in the management of these, their greatest assets.
[With Gartner’s findings in mind, the release of Microsoft Dynamics CRM 2015 is well-timed. “With this release we are providing deep value to our customers to help them better engage with their customers,” wrote Kirill Tatarinov, Executive Vice President Microsoft Business Solutions, in a recent blog* post.]
Looking at deploying a CRM solution for your organisation? Visit our Microsoft Dynamics CRM pages