CRM Revenues to Top $27 Billion in 2005, Recovering From Near-term Contraction

Aberdeen Group Forecasts CRM Revenues to Increase at 19.9% Annually
BOSTON, MA — November 28, 2001 In its newly released report, "Worldwide CRM Spending Forecast and Analysis 2001-2005," Aberdeen Group has released the results of an in-depth study on CRM spending. The report chronicles the expected spending for critical CRM market segments, which include Sales Force Automation, Marketing Automation, Customer Service Automation, Field Service Management, Help Desk, and Partner Relationship Management.
Despite current economic conditions, Aberdeen research indicates that the worldwide market for CRM will resume growth by 2002. As a result, CRM revenues are forecasted to increase at a compound annual growth rate (CAGR) of 19.9% over the next five years. According to Aberdeen Group, total CRM market size is expected to increase from $13.5 billion in 2001 to roughly $27.8 billion in 2005.
"At present, the CRM market is being negatively affected by economic conditions and worldwide events, resulting in an overall market contraction for the second half of this year," says Hugh Bishop, report co-author. "However, thanks to the clear return on investment (ROI) and rapidly increasing adoption in overseas markets, the global CRM market will rebound strongly from the worldwide slowdown in IT spending."
"Overseas markets will be a primary growth engine for CRM," states Christopher Fletcher, Managing Director of Aberdeen`s CRM practice. "Non-North American markets will contribute more than 38% of total worldwide CRM expenditures in 2001."
Worldwide CRM Spending Forecast and Analysis 2001-2005 is a report offered through Aberdeen`s newly launched Market Analysis Service (MAS). Aberdeen continually evaluates global technology markets on behalf of its clients in an effort to identify optimum market opportunities and conditions.
About Aberdeen Group
Since 1988, Aberdeen has been a leader in providing market analysis and positioning services that help business technology suppliers meet the challenge of establishing leadership in fast-changing markets. Aberdeen is headquartered in Boston, MA, and has research centers in Palo Alto, CA, Fort Collins, CO and Amsterdam, the Netherlands.

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