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CRM spending to focus on SaaS

Rachel Wheeler Archive
By 2015, one-third of all spending on customer relationship management (CRM) software will be for software as a service (SaaS) technology, it has been forecast.

Independent information analyst Gartner has predicted that there will be a big shake-up in the CRM market in the coming years as a number of key trends begin to take hold.

This includes changes to marketing and customer service technologies and the introduction of new projects and implementations, the firm said.

Last year, 26 per cent of all spending on CRM was SaaS based, something which Gartner believes will rise to 32 per cent in 2015.

“Buyers of CRM applications should resist the temptation to bypass the IT organization in the short term. Instead, involve IT in purchase decisions early on to avoid the most-frequently cited downstream issue of data integration and address potential concerns about inadequate security, scalability and privacy,” the report added.

The analyst said that, while the limitations of SaaS remain, IT organizations should look to focus on integration skills when they adopt the technology.

Posted by Richard Jones