No recession for CRM

The customer relationship management industry will grow by 14.2% this year, Gartner forecasts in a new report, with revenue expected to surpass US$8.9 billion. Last year, the CRM industry registered $7.8 billion in global sales, based on preliminary revenue figures. The market is expected to continue to grow through at least 2012, when revenues are forecast to reach $13.3 billion.

A number of factors are driving CRM growth, said Gartner Research Director Sharon Mertz, author of the report.

Global sales is one - particularly for large corporations in emerging markets. The strengthening grip of the Software as a Service model on the market is another.

Another factor is the boost to productivity from Web 2.0 add-ons that many CRM vendors are bringing to market.

"One thing that struck me this year even more so than usual is that vendor diversification business strategies are really contributing to growth," Mertz told CRM Buyer.

In other words, there is no one strategy - not even SaaS - to which CRM can attribute its growth trajectory.

"Vendors are doing all kinds of things - working with channel partners in new ways, focusing on emerging market regions, offering a variety of deployment models, and experimenting with new functionality - to bring in revenue," said Mertz.

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