Worldwide customer relationship management software revenue is expected to decline 8 percent this year, down from 89 percent growth in 2000, according to a survey released this week by Dataquest.
Worldwide CRM software revenue is projected to be $3.6 billion this year, and the industry's growth rate will remain flat next year, according to the study. The market is forecast to grow 10 percent in 2003 to $4 billion.
“The economic slowdown … will immediately intensify the weeding out of the weak CRM software companies,” said Tom Topolinski, vice president for Dataquest's Application Software Industry Research group.
“Software companies that have large cash reserves, little reliance on investment monies, solid business management and a good return on investment proposition will fare best.”
Dataquest is a unit of Stamford, CT-based Gartner Inc.