Study: Global CRM Spending to Hit $19.6 Billion by 2005Customer relationship management spending will remain nearly flat for the rest of 2002 but will resume growth in 2003 and reach $19.6 billion by 2005, according to a study released last week by Boston-based market analysis and research firm Aberdeen Group.
"The economic slowdown has affected all sectors of the technology market," said the report's co-author, Denis Pombriant, managing director of Aberdeen's CRM practice. "We expect 2002 CRM spending to grow only 2 percent over 2001, reaching $13.74 billion by the end of the year. However, double-digit growth should resume in 2003, and we expect CRM spending to reach $19.6 billion by 2005."
The report, "Worldwide CRM Spending: Forecast and Analysis 2001-2005," found that a large part of future CRM growth will come from midsize enterprises and/or the adoption of relatively new CRM application categories, such as sales force effectiveness and partner relationship management. The report further suggests that as the U.S. and global economies resume spending growth in 2003, CRM will increase penetration into markets outside the United States.
"Clearly, U.S. CRM spending is being adversely affected by a slowdown in the telecom and financial services sectors," report co-author and senior vice president Hugh B. Bishop said. "Other sectors, however, are picking up some of the slack."
The report breaks down global CRM spending by geography. In addition, for the United States it provides CRM spending and growth forecasts by vertical industry and organization size.