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| Gartner Dataquest Survey Shows 65 Percent of Respondents Plan to Have CRM Initiatives Deployed in Their Company by 2002 |
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MOUNTAIN VIEW, Calif., October 17, 2001 - While economic conditions appear to have forced some companies to delay projects or reduce the scope of implementation, a recent survey by Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB) shows that 65 percent of the respondents plan to have customer relationship management (CRM) initiatives deployed in their enterprise by 2002.
"Through 2002, large and midsize enterprises will continue to implement big-name CRM suites using top-tier consulting and system integration companies," said Debashish Sinha, senior analyst for Gartner Dataquest's IT services worldwide group. "CRM initiatives are evolving and iterative in nature, often requiring multiphase implementations, continued application management and several individual projects based on an overall program strategy." Gartner Dataquest analysts said there is a high propensity among enterprises that use external service providers (ESPs) to consider their services ongoing. This gives the ESPs the opportunity and requirement for long-term commitments but also poses a threat to service providers that cannot build their client base quickly. "Given their position among the top and upper mid-market enterprises, the top-tier consulting and systems integration companies are in the best position to gain leadership in the CRM services market," Sinha said. "After 2003, based on continued growth in the their customer relationships, they will effectively own the CRM services space." A key implementation challenge faced by organizations attempting a CRM deployment has been the lack of coordination among various user departments. While corporate executives are planning enterprise-wide deployments, specific divisions continue to implement point solutions based on their current needs and business environment. This creates a key reason for enterprises to consider Tier 2 service providers for CRM services. Smaller companies demonstrate a more focused approach to business process issues and are largely willing to commit to quantifiable benefits to gain visibility within large enterprise customers. "Enterprises struggling with lack of coordination across departments should consider the needs of individual groups and work on a top-down/bottom-up strategy," Sinha said. "Because department-level CRM deployments may be more cost-effectively supported by a Tier 2 system integrator with domain-specific skill sets and software relationships, the enterprise should identify a master list of approved smaller service providers to work on individual projects." The top-tier providers can then primarily focus on supporting the continued convergence of the enterprise's IT and business strategy, help develop the standards for the CRM solution, implement the core components of the CRM initiative, manage the coordination across departmental-level initiatives and provide methodologies to track the overall business impact. Additional information is available in the Gartner Dataquest Perspective "Outlook for CRM Implementation Services, 2002." This document examines how opportunities for CRM providers will evolve and what will be the keys to a successful deployment. This information is produced by Gartner Dataquest's IT Services group. This group provides a complete picture of the IT services industry including network integration and support, hardware services, consulting and system integration, outsourcing, life cycle service, strategic partnering and services marketing, software support, and vertical markets, including communications, education, financial services, government, healthcare, manufacturing, and retail. To subscribe to one of Gartner Dataquest's IT services programs, please call 408-468-8000. Reports can be purchased on the Internet at www.gartner.com. Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Conn., and has 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenues of $855 million. For more information, visit www.gartner.com. |
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Contact: Christy Pettey 408-468-8312 christy.pettey@gartner.com |
