Customer-engagement systems to grow faster among enterprise apps

LONDON, UK: Customer-engagement systems will be the fastest growing enterprise application between 2013 and 2018, signalling that competition for customers is hotting-up, says Ovum.

According to the global analyst firm's newly launched software forecasts, e-commerce and CRM solutions will see compound annual growth rates (CAGRs) of approximately 10 percent for the 2013-2018 period, followed closely (8 percent) by enterprise applications that support innovation, such as product lifecycle management (PLM) and innovation management platforms.

Ovum's Enterprise Application Software Market Forecasts, illustrate businesses' interest in strengthening customer engagement capabilities while reducing costs. This trend is corroborated by Ovum's ICT Enterprise Insights, where growth was the top priority, followed by greater customer focus, compliance, cost reduction, and innovation, across a global population of 6,698 enterprises.

Ovum's new forecasts show that manufacturing and healthcare verticals will be the biggest spenders by 2018, driven largely by the need to innovate. Healthcare investment will nearly double between 2012 and 2018 from US$12.2bn to US$22.9bn, while manufacturing investment will grow from US$14.6bn to US$23.9bn over the same period.

By region, the rapidly evolving economies of China, India, Brazil and the Middle-East & Africa show the highest CAGRs (between 13 percent and 16 percent). Predictably, Europe and the US show the lowest (between 7 percent and 8 percent), albeit from a much higher base.

"Globalization and disruptive technologies - particularly social networks, cloud computing, and mobile - have had a massive impact, raising customer, consumer, and citizen expectations and giving them greater power. This, plus a strong focus on cost reduction through IT modernization and fierce competition for customers, is leading organisations to invest in their ability to adapt quickly enough to remain relevant to consumers," says Jeremy Cox, principal analyst, customer engagement, Ovum.

The enterprise applications market forecast is one of seven new software and IT services forecasts being launched by Ovum. The new forecasts are based on the most comprehensive collection of vendor data currently available in the analyst community.

In addition, for the first time ever, data is segmented by current market definitions, not outdated views as is often available. Delivered via Tableau, available data includes spend and compound growth rates broken down by region, country level and vertical market, as well as rankings of top vendors with their market shares and year-on-year growth.