Federal Government CRM Spending to Reach $500 Million

Share this content:
U.S. government spending on CRM systems and services will increase from $230 million in 2001 to more than $520 million in 2006 at an annual growth rate of nearly 18 percent, according to a report released yesterday by INPUT, an IT and Electronic Business information and marketing services firm.

"Federal agencies will need to comply with the Government Paperwork Elimination Act by the end of fiscal year 2003, providing electronic options for paper-based processes, including customer interactions," says Payton Smith, manager of public sector market analysis services at Chantilly, VA-based INPUT. "We see GPEA as the principal driver for growth in this marketplace."

According to the report, spending on CRM systems and services will be highest among civilian agencies with large customer service obligations, such as the Internal Revenue Service and the Social Security Administration.

The report also cautions that privacy concerns could be a significant obstacle to growth in the Federal CRM market place.

However, Smith said, "With the potential benefits that CRM solutions promise for the U.S. government, INPUT expects Federal agencies will work quickly to address privacy concerns and overcome any potential barriers."


Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above