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Consisa predicts a mature ERP market in 2yrs
[October 11, 2007]

Consisa predicts a mature ERP market in 2yrs

( Via Thomson Dialog NewsEdge) El Salvadorian software consultancy Consisa expects the ERP business in El Salvador and Guatemala to reach maturity within two years, the firm's sales director Jorge Martnez told BNamericas.

The firm offers various services and products, such as Microsoft (Nasdaq: MSFT) Dynamics ERP and CRM products. The company also offers IT training and last year launched e-learning for English language with a focus on IT.

Sales of Microsoft's CRM and ERP Dynamics products represent 40% of Consisa's revenue, but the maturity that Martnez referred to means the ERP market will be tapering off within two years.

Still, the executive believes the CRM market in Central America will continue growing beyond that. "CRM revenues will continue to grow thanks to large companies and the current trend of mergers and acquisitions in the financial services sector. Also business intelligence revenues will start reflecting global growth trends," he added.

To deal with the inevitable maturing of the ERP market in El Salvador and Guatemala, Martnez plans to take Consisa's solutions to Honduras and Nicaragua within the next two years. The 22 year-old firm now serves over 650 clients and opened offices in Guatemala in 2006.

In 2007, the firm expects revenues of US$3mn-6mn, with growth over 2006 in the order of 20%, Martnez said.

Consisa's business intelligence, point of sales, SOA and supply chain management solutions come through the firm's alliances with US software firms Borland (Nasdaq: BORL), Ultimus, Sybase (NYSE: SY), and data management solutions provider Embarcadero Technologies (Nasdaq: EMBT).

The firm also partners with US IT professional training firm ExecuTrain. Martnez estimates the ExecuTrain business line accounts for 15-20% of Consisa's revenues. In the same vein, Consisa has begun to offer IT outsourcing.

The main motor driving growth in IT training and outsourcing is cost reduction, because "it is very expensive to maintain [staff] experienced and trained in IT", Martnez concluded.

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