By Guy Mathew
The market for CRM services including planning, implementation, operations management, services and support totaled $6.4 billion in Europe in 2001.
The market for CRM services including planning, implementation, operations management, services and support totaled $6.4 billion in Europe in 2001, according to IDC. The analyst house predicts that the market will grow to $15.5 billion by 2006 following a compound annual growth rate (CAGR) of 20%. One of the drivers of this growth that IDC offers, is the uptake in hosting services as many companies are unwilling to take on the responsibility of implementing a CRM solution.The research also suggests that although CRM implementations can produce great benefits in terms of ROI, they can be difficult to quantify. In order to make sure the best value is derived from an implementation, companies need to have decided what they want from it before they start an implementation, according to the report.“The benefits of CRM investments are difficult to predict and capture because many of them cannot be expressed in tangible terms alone,” said Rasika Versleijen-Pradhan, senior analyst for IDC’s European CRM services research. “Identifying both incremental costs and benefits will help determine the value-add and business potential of the services offered. Therefore it is important that service vendors are able to develop appropriate tools and methodologies prior to a large CRM investment.”The report focuses in particular on the benefits of mobile technology in CRM. It suggests that industries with a lot of remote workers stand to benefit most from the technology. “Mobile technology can provide them [remote workers] with quick, easy access to customer information and allow them to react faster to changing situations. This development would produce measurable ROI and offer businesses strategic and tactical advantages over their competition,” said Versleijen-Pradhan.