Saturday, May 28, 2022

Gartner: It

Customer relationship management vendors are struggling to capture new business, and enterprises in the market for CRM software stand to benefit from their tribulations, according to a report released this week by Gartner Inc.

“The global economic downturn has intensified its grip on the vendors within the CRM software market. The real winners are the buyers of CRM software,” says Thomas Topolinski, Gartner vice-president, in the report.

Cash-conserving enterprises are focused on proven revenue-generating IT projects and therefore slower to commit to CRM software. This hesitancy – and its negative effect on vendors’ revenue – gives the enterprise buyer a leg up when it comes to licence negotiation. “Opportunity for the enterprise comes in the form of strong negotiating position in terms and conditions, including price,” Topolinski says.

Demand for CRM software will continue, but growth will be slow, Gartner predicts. The research company’s estimates for 2001 new licence revenue show an 8 per cent drop over 2000 new licence revenue – which was up 89 per cent over 1999 figures. Growth in 2002 is forecast to be flat at US$3.7 billion. In 2003, Gartner expects new licence revenue to climb 10 per cent to US$4 billion.

For enterprises that want to take advantage of this favourable buying climate, Gartner offers these recommendations:

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication. Click this link to send me a note →

Jim Love, Chief Content Officer, IT World Canada

Related Tech News

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.