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CRM services market to reach 45.5 bn in 2006

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CIOL Bureau
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BANGALORE: The market for customer relationship management (CRM)-related

services has experienced substantial growth. The new research from IDC reveals

that the worldwide CRM services market will increase at a compound annual growth

rate (CAGR) of 18.6 percent to reach $ 45.5 billion in 2006. The US CRM services

market is expected to total over $ 18 billion in 2006, a growth rate well above

that of the overall US IT services market. This was announced by a media release

from IDC.

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One area of CRM that has experienced particularly strong growth is the market

for outsourced customer care services. In almost all cases, a diverse array of

players with varying niche or generalized offerings have been able to capitalize

on this burgeoning market opportunity in the customer care services space. IDC

research indicates that the worldwide customer care services market, consisting

of customer care outsourcing and CRM consulting services, represented a $ 34.9

billion opportunity in 2001. IDC forecasts this market to reach $ 90.3 billion

by 2006

"In the coming years, we expect this market opportunity to continue its

path of expansion and growth into new arenas of service," said IDC’s CRM

and Customer Care Services research program, program manager of, Brian Bingham.

"As a result, service providers can expect to see a furtherance in the

revenue opportunities from clients in search of CRM strategy consultation and

outsourced customer care services over the next five years."

IDC's top recommendations for CRM service firms and customer care service

providers include: advocate an incremental approach to CRM, but within a

long-term vision; use the diversity of the CRM services ecosystem to advantage;

consider a blended "design and build" plus "operate"

approach to CRM services; focus on delivering value to clients’; expand

vertical-industry expertise; and be receptive to partnering.

The research in this release comes from two new studies published by IDC’s

CRM and Customer Care Services research program. The first study, Worldwide CRM

Services Market Forecast and Analysis, 2001-2006 provides a comprehensive

overview and forecast of the worldwide CRM services market and helps CRM

services firms understand recent trends and align themselves with future

directions within this dynamic market. It includes worldwide CRM services market

data and trends by geographic region, a US CRM services market forecast by

service activity and engagement type, US CRM services forecast by 18 vertical

industries and by CRM segment, and a comprehensive overview of the top 10 CRM

services firms. Finally, the study provides and IDC analysis of the future

outlook of the CRM services market and essential guidance to CRM services

vendors.

IDC’s study, Worldwide Customer Care Services Forecast and Analysis,

2001-2006
, provides an overview of the worldwide customer care services

market, addressing both consultative services and customer care as provided by

contact center outsourcers. Market opportunities for these services are forecast

for the 2001-2006 period by service category, region, vertical industry, channel

of delivery, and interaction campaign. Finally, a separate global top 15 list is

provided for the customer care outsourcing industry, along with a table of

winning attributes.

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