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Cloud Technologies and Social Networking Will Support Demand for CRM SystemsLos Angeles, CA, Nov 03, 2011 (PRWeb.com via COMTEX) -- After five years of volatile revenue growth, the CRM Service Providers industry is projected to expand, according to latest report from IBISWorld, the nation's largest publisher of industry research. As corporate profit increases and private investment in computers and software rises, revenue is forecast to increase at an average annual rate of 4.0% to $8.3 billion. In 2012, revenue is expected to rise by 4.0% as small businesses seek better ways to manage their client relations and prices of CRM services drop. The CRM Service Providers industry is expected to remain strong in 2011, despite the volatility that it experienced during the past five years. Low corporate profit and limited capital investments caused the industry to experience unstable revenue streams during the recession. However, when the economy began to bounce back in 2010, sales grew and the industry became steadier. From 2006 to 2011, revenue is expected to increase at an average annual rate of 1.5%. In 2011, revenue will rise 6.4% to $6.8 billion as companies invest more in their capital equipment to improve their client relations. In addition to volatile revenue, customer preferences are changing; companies prefer that their CRM services be accessible via the internet instead of being installed and housed on their servers. As a result, the industry is providing more on-demand CRM services where all information is accessible over the web. Industry players are also integrating social networks with their programs, so customers can monitor company comments on networks such as Twitter. According to IBISWorld analyst, Janet Shim, in the five years to 2016, revenue in the CRM Service Providers industry is forecast to grow by an average annual rate of 4.0% to $8.3 billion. "Firms will continue to improve their services to meet the needs of the customers and invest in cloud space to make it easier to add more clients," says Shim. The CRM System Providers industry is moderately concentrated, with the largest firms including, SAP AG, Salesforce, oracle Corporation and Microsoft Corporation. The industry is also expected to consolidate. As demand rises, these larger firms will look to gain more market share and are expected to acquire smaller firms with advanced technology. Already in 2011, Oracle acquired RightNow Technologies to gain larger access to cloud CRM technologies. From 2011 to 2016, the number of industry companies is projected to decrease at an average annual rate of 1.3% to 172 firms. For more information, download the full report from IBISWorld on the CRM Service Providers industry IBISWorld Industry Market Research Reports Contain: About this Industry Industry Definition Main Activities Similar Industries Additional Resources Industry at a Glance Industry Performance Executive Summary Key External Drivers Current Performance Industry Outlook Industry Life Cycle Products & Markets Supply Chain Products & Services Major Markets Globalisation & Trade Business Locations Competitive Landscape Market Share Concentration Key Success Factors Cost Structure Benchmarks Barriers to Entry Major Companies Operating Conditions Capital Intensity Key Statistics Industry Data Annual Change Key Ratios Jargon & Glossary Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189 About IBISWorld Inc. Recognized as the nation's most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772. ### Read the full story at http://www.prweb.com/releases/2011/11/prweb8931848.htm PRWeb.com |