Reports: CRM, HMS Expected to Grow 10 Percent in 2006

Customer relationship management ties with human capital management as the fastest-growing enterprise application segment, according to two reports by research firm AMR Research.

The Human Capital Management Applications Report, 2005-2010 and The Customer Management Applications Report, 2005-2010 show that the two segments are expected to see 10 percent growth rates in 2006.

While the HCM market is fueled by interest in automating personnel-related processes and supporting strategic goals, the CRM market is growing as a result of new delivery models, such as software-as-a-service, according to the report. By comparison, the core enterprise resource planning market is expected to grow at only 3 percent.

AMR Research's CRM report said SAP remained at the top for the second consecutive year and expects SAP to hold the number one spot in 2006 as Oracle moves to number two.

Hosted revenue, primarily from software-as-a-service, acted as the catalyst for the industry with 60 percent growth in 2005, the report said, adding that the poster child for this model, Salesforce.com, moved from number 12 in 2004 to number 6 in 2005 and is expected to grow 52 percent in 2006.