GARTNER DATAQUEST SAYS CRM SOFTWARE VENDORS ARE STRUGGLING THROUGH DIFFICULT YEAR.The economic slowdown has had a negative impact on all segments in the software market, and the customer relationship management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) software market is no exception. Worldwide CRM software revenue is expected to decline 8 percent in 2001, down from 89 percent growth in 2000, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE NYSE See: New York Stock Exchange : IT and ITB ITB Invitation To Bid ITB In The Beginning ITB Internationale Tourismusbörse (German) ITB In The Business (aka in the business service industry) ITB Intrathecal Baclofen Therapy ). Worldwide CRM software revenue is projected to reach $3.6 billion in 2001, and the industry's growth rate will remain flat in 2002 as new license revenue will again total $3.6 billion. The market is forecast to grow 10 percent in 2003 to $4 billion. "The economic slowdown, coupled with the current military action led by the United States, will immediately intensify the weeding out of the weak CRM software companies," said Tom Topolinski, vice president for Gartner Dataquest's Application Software Industry Research group. "Software companies that have large cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. , little reliance on investment monies, solid business management and a good return on investment (ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). ) proposition will fare best." |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion