CRM makes sense for small and medium businesses2 min read . Updated: 11 Dec 2013, 10:32 PM IST
Small and medium business segment is looking for specialized solutions with quick deployment cycle, the report said
Mumbai: International Data Corp. (IDC) in a report in February noted that as the enterprise market segment is saturating fast, there is an increasing focus on lower parts of the organizational pyramid and need for new delivery models.
For instance, the small and medium business segment is looking for specialized solutions with quick deployment cycle, the report said. Vendors are trying to address specific requirements and customize their offerings to cater to this segment by making their applications more focused and easier to use and manage. Enterprises that are looking at online business models are venturing for options such as e-retailing solutions, which is integrated with traditional CRM (customer relationship management) solutions, IDC said.
IDC predicts the Indian ERM (enterprise risk management) market to be in the region of ₹ 2,000 crore in 2013, with a growth of 12.8% five-year compounded annual growth ratio (2011-16). Looking at the market trends and the competitive insights, IDC has slightly downgraded its ERP (enterprise resource planning) forecast for the coming period due to the continued mindset of caution and tactical investments by the organization.
The view on the CRM market is comparatively more bullish and the size is expected to be around ₹ 1,600 crore in 2013, with a similar growth trajectory as ERP for the five-year period. There is an ever-increasing demand for CRM applications to understand customer psychographics and improve customer services to gain a competitive edge, the report said.
“When looking at the SMB (small and medium business) segment, it is important to note that these companies are looking for faster deployment of applications and less customization. They also understand that as the level of customization increases, the cost as well as complexity goes up," said Shweta Baidya, senior market analyst (software) at IDC India. “In line with the need, vendors have started expanding their portfolio through partnerships/acquisitions to be able to offer a comprehensive end-to-end solution to the customers under one wing."
The software as a service model is going to drive ERM deployments specifically in the SMB (small and medium business) segment due to its subscription and pay-per-use model.
“Leading vendors have a dual focus on their on-premise as well as on-demand delivery models for enterprise applications and are working with partners to make the most of the existing pie in the market across employee segments. This level of flexibility and agility is expected from the market leaders in these challenging times. Organizations are more likely to work with firms that understand their business processes better and suit their requirements and budget," said Nirupam Chaudhuri, research manager (software and services) at IDC India.