IDC Reaffirms SAP’s Dominance in ERP and CRM Market

India, BangaloreInternational Data Corporation (IDC)’s latest study on enterprise applications has reaffirmed SAP’s dominance of the Indian ERP and CRM market. SAP posted an impressive performance with a market share of 59.6 per cent in ERP and 28.7 per cent share in CRM market in 2001-2002.

According to the report, “Indian ERP market suffered from a negative growth of 12% and total revenues came down to Rs. 191.7 Crore in the year 2001 from Rs. 217.1 crores in the year 2000. The Indian ERP software market continued to be dominated by SAP. SAP remained the clear market leader and also improved its market share to 59.6% in the year 2001-02. Moving forward, we expect the market leader SAP to further consolidate its domination”, said Dinesh Jindal Sr. Analyst, IDC (India) Ltd.

“Our growth in tough economic times validates our strategy of working very closely with our customers and providing business solutions that deliver sustainable value,” said Alan Sedghi, President and Managing Director, SAP India. “As the market leader in Enterprise Applications , SAP continues to innovate and deliver cutting edge technology, catering to the evolving needs of our customers. Given our solid track record, SAP has emerged as the preferred vendor and trusted advisor, when customers seek to deploy Enterprise Business Solutions,” he added.

The End User survey conducted with over 200 organizations indicated that the
top three factors while selecting an ERP solution by an organization are:

  • Industry specific/mission specific functionality
  • Compatibility with current platforms i.e. the ability to handle different
    types of databases.
  • Degree of customization possible

Post Internet meltdown and the economic slowdown in the last year, many organisations
have realized the need to put their house in order and operational efficiency
has become critical for survival. The Indian economy has become much more integrated
with the world economy at large and therefore, Indian businesses need to respond
faster to changing business conditions. Some of the key trends are:

  • The large organisations are trying to extend the reach of their ERP systems
    to cover the supply chain as well as automate some of their interfaces with
    their customers.
  • Small and medium organisations are also actively trying to automate their
    business processes.
  • Organisations are also trying to explore the use of internet to manage
    some of their business processes.
  • Mid tier vendors are aggressively expanding the market through extended
    offerings and adding functionalities to their existing products.

Meanwhile, the CRM market in India, though in its nascent stages, is an area of high interest among both vendors and users alike. CRM will become more integrated with enterprise resource management (ERM), ecommerce, and supply chain automation (SCA) applications, thus driving the demand for all four. With the large organizations finishing off with their back office integration and looking at optimizing the front office, and most of the small and medium enterprise looking at customer retention as a focus area, the market is expected to grow rapidly.