TMCnet LOGIN
Webinars
July 24, 2007
SaaS Market in Asia to Hit $1.16 Billion by 2010
By David Sims, TMCnet Contributing Editor
According to a recent report issued by Springboard Research, "The SaaS (News - Alert) Market in Asia Pacific, 2006 to 2009: Expanding the Reach & Appeal of Software," the regional market is still dominated by five vendors -- Salesforce.com (News - Alert), WebEx, RightNow Technologies, Oracle and NetSuite.
The report found awareness and adoption of SaaS across the region (excepting Japan), with the market increasing 92.5 percent in 2006 to $154 million. The SaaS market in Asia will reach $1.16 billion by 2010, the report found, with a compound annual growth rate of 66 percent, to comprise 15 percent of the enterprise software application market.
"Although customer relationship management accounts for the largest chunk of the market in Asia, representing 45 percent of revenue in 2006, organizations are aware of and use many different types of SaaS applications," the report's author found.
After small to medium businesses that have been the mainstay for vendors, now large enterprises are also looking at SaaS for non-critical applications, said Ravi Shekhar Pandey, research manager for Springboard Research.
"SaaS is definitely going beyond CRM, which is the area it has been associated with in the past," said Pandey. "With all segments of SaaS growing, we are seeing applications across the board being adopted by enterprises in the region and more importantly, we are seeing enterprises being very happy with the SaaS applications they are using. This bodes well for the market, not only the small to medium businesses that have been the mainstay for SaaS vendors, but also those large enterprises looking at SaaS for non-critical application."
Last week a new report released by Baird found that investor interest in CRM and the outsourced customer care industry is at an all-time high, with mergers and acquisitions in the sector hitting record levels in 2006 both in terms of the number of transactions and dollar value.
The sector ended 2006 with $8.2 billion in total global M&A deal volume, including a record $7.4 billion in the U.S. and is on pace for continued strong activity in 2007.
In the report, "M&A Market Analysis: Outsourced Customer Care Industry," Baird defines the Outsourced Customer Care industry with four broad categories: Customer Interaction Services (customer service, technical support, marketing services and sales), Fulfillment and Logistics, CRM Technology Hosting, and Consulting Services.
The global market for these services has been expanding at a double-digit compound annual growth rate over the past five years. Industry sources estimate the global customer care market to be about $300 billion worldwide in 2006, including both in-house and outsourced services.
The market is expected to reach $377 billion by 2010, with the outsourced segment contributing 25 percent of the total, or $92 billion, up from $58 billion, or 19 percent in 2006.
---------
David Sims is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
The report found awareness and adoption of SaaS across the region (excepting Japan), with the market increasing 92.5 percent in 2006 to $154 million. The SaaS market in Asia will reach $1.16 billion by 2010, the report found, with a compound annual growth rate of 66 percent, to comprise 15 percent of the enterprise software application market.
"Although customer relationship management accounts for the largest chunk of the market in Asia, representing 45 percent of revenue in 2006, organizations are aware of and use many different types of SaaS applications," the report's author found.
After small to medium businesses that have been the mainstay for vendors, now large enterprises are also looking at SaaS for non-critical applications, said Ravi Shekhar Pandey, research manager for Springboard Research.
"SaaS is definitely going beyond CRM, which is the area it has been associated with in the past," said Pandey. "With all segments of SaaS growing, we are seeing applications across the board being adopted by enterprises in the region and more importantly, we are seeing enterprises being very happy with the SaaS applications they are using. This bodes well for the market, not only the small to medium businesses that have been the mainstay for SaaS vendors, but also those large enterprises looking at SaaS for non-critical application."
Last week a new report released by Baird found that investor interest in CRM and the outsourced customer care industry is at an all-time high, with mergers and acquisitions in the sector hitting record levels in 2006 both in terms of the number of transactions and dollar value.
The sector ended 2006 with $8.2 billion in total global M&A deal volume, including a record $7.4 billion in the U.S. and is on pace for continued strong activity in 2007.
In the report, "M&A Market Analysis: Outsourced Customer Care Industry," Baird defines the Outsourced Customer Care industry with four broad categories: Customer Interaction Services (customer service, technical support, marketing services and sales), Fulfillment and Logistics, CRM Technology Hosting, and Consulting Services.
The global market for these services has been expanding at a double-digit compound annual growth rate over the past five years. Industry sources estimate the global customer care market to be about $300 billion worldwide in 2006, including both in-house and outsourced services.
The market is expected to reach $377 billion by 2010, with the outsourced segment contributing 25 percent of the total, or $92 billion, up from $58 billion, or 19 percent in 2006.
---------
David Sims is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
