META Group expects CRM services growth of 5%-6% in 2003

META Group, today announced the availability of its newest METAspectrum evaluation, covering the CRM consulting services market. This METAspectrum evaluates vendors whose services include third-party strategy formulation, software selection, software implementation, business process improvement, team/end-user training, and deployment. Market studies indicate that clients have a low level of confidence with regard to CRM service providers, based largely on early CRM stumbles usually associated with enterprise wide projects. According to META Group, clients that have deferred CRM evolution in 2001 and 2002 will be more inclined to move ahead, resulting in CRM services growth of 5%-6% in 2003 and 8%-10% in 2004/05.

"Best-in-class IT organisations understand that CRM excellence is not predicated on software implementations alone," said Johan Jacobs, strategic advisor at META Group. "Strategy, integration, deployment, and value measurement are key issues, and our research indicates that clients can have greater success when they tap outside consulting services for these areas."

As CRM consulting services firms mature, the greatest challenge they face is client immaturity, which leads to a higher relative importance of presence criteria (versus performance) as clients seek "known quality." The CRM service providers have evolved beyond the notion that CRM excellence can be achieved through software implementation and have instead focused on value creation through CRM that speaks to client needs and leads to more tactical CRM endeavours.

The CRM Consulting Services METAspectrum evaluates the top 10 vendors in this market. The analysis found:

* A major market shift occurred from mid-2001 to late 2002, wherein fewer clients are investing in enterprise wide CRM endeavours. Instead, they are proceeding with smaller, shorter, and more tactical projects, and chaining these projects across time.

* Studies indicate that clients have a low level of confidence with regard to CRM service providers, based largely on early CRM stumbles usually associated with enterprise wide projects.

* More service providers are refining their CRM messages from an enterprise wide scale to a more tactical, value-based approach, taking into consideration individual clients` maturity levels, short-term needs, and long-term visions.

* As the CRM consulting services firms mature, the greatest challenge they face is client immaturity, which leads to a higher relative importance of presence criteria (versus performance) as clients seek "known quality."

* CRM leadership requires an ability to move beyond value measurement and into long-term value capture for clients, while still adhering to time and cost limitations.