DEC 20, 2000
(CA-GARTNER-GRP)(IT) Gartner Dataquest Says CRM Services Industry
to Reach $19.9 Billion by End of 2000
Business & Technology Editors
SAN JOSE, Calif.--Dec. 20, 2000--As enterprises
deploy more Web-enabled systems for customer interaction, customer
relationship management (CRM) services is becoming more important for
companies, according to Dataquest Inc., a unit of Gartner Group, Inc.
(NYSE: IT and ITB).
Gartner Dataquest said the worldwide CRM services market is on
pace to reach $19.9 billion in 2000, an increase of 28 percent over
1999 revenue. Spending plans for CRM initiatives among end users show
that, on average, enterprises budget more than $1 million for their
CRM initiatives, and this spending will double over the next 12
months.
"The CRM services market is being driven by increased penetration
of the Internet as a technology platform, growing importance of CRM as
a strategic initiative, the growth in e-commerce driving the use of
Web channels for CRM, and the growing need for scalable customer
management solutions," said Debashish Sinha, senior analyst for
Gartner Dataquest's IT Services worldwide group.
While there are great market opportunities, the CRM market has
been hindered by a lack of skilled resources. Many enterprises can
benefit from CRM services, but Gartner Dataquest analysts said there
is a lack of CRM expertise.
"As this market grows, the resource constraints will begin to show
in implementation services, as well as the enterprise's ability to
handle the increasing volume of customer interaction," Mr. Sinha said.
"Although Web-based self-service may take up some of the overflows, we
believe that access to a global workforce for handling the increased
interaction flows of successful CRM implementations will become a
service component provided by the CRM service providers."
CRM is a business strategy aimed at anticipating, understanding
and responding to the needs of an enterprise's current and potential
customers. CRM involves capturing customer data from across the
enterprise, consolidating all internally and externally acquired
customer-related data in an integrated data repository, analyzing the
consolidated data, distributing the results of the analysis to various
constituents of the extended enterprise and using the information when
dealing with the customer.
The market for CRM services is divided into two major segments:
maintenance-related services and professional services.
Maintenance-related services include hardware maintenance and
support services, and software maintenance and support services.
Professional services are broken into six major market segments:
1) consulting, which includes business consulting and IT consulting;
2) development and integration, primarily application development,
system integration and deployment services;
3) education and training;
4) IT management services, which involves managing and operating the
enterprise IT infrastructure;
5) transaction processing services; and
6) business management services, includes managing and operating IT
intensive business processes.
Additional information on this market is available in the Gartner
Dataquest Market Trends report, "CRM Services Market Trends and Demand
Characteristics for 2000." This report examines the current status of
the CRM services market, and it looks ahead to what the key market
drivers, accelerators, and inhibitors will be going forward in this
market.
To purchase the report or subscribe to one of Gartner Dataquest's
IT services programs, please call 800-419-DATA, or 408-468-8009. More
information about Gartner Dataquest's programs, descriptions of recent
research reports and full text of press releases can be found on the
Internet at www.dataquest.com.
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CONTACT: Gartner Group, Inc., San Jose
Tom McCall, 408/468-8312
tom.mccall@gartner.com