Press release from Business Wire India
Source: Frost & Sullivan
Thursday, February 18, 2010 03:36 PM IST (10:06 AM GMT)
Editors: Business: Advertising, PR & marketing, Business services, Information technology; Technology
--------------------------------------------------
Need to Promote Business Efficacy Drives the Enterprise Application Software Market, Finds Frost & Sullivan
Mumbai, Maharashtra, India, Thursday, February 18, 2010 -- (Business Wire India) -- The need and degree of integration for enterprise applications in South Asia (India and Sri Lanka) and the Middle East and North Africa (MENA) region including the U.A.E, Saudi Arabia and Egypt, varies according to the nature the demand. Some countries demand a high degree of customization for their applications and want localized product, whereas end-users in other countries are more global in nature and demand less customization/ packaged products. However, diversity of all these markets is guided by nearly the same market factors and hence prospects for the enterprise application (EA) software market look upbeat as companies are increasingly deploying these robust technologies to improve customer service and expedite business operations.
The enhanced need for creating competitive advantages, such as optimization of capacity, reduction of lead-time and cost as well as increased profit through IT implementation is a major factor propelling the market forward. As scalability of IT systems is a priority, companies are seeking business solutions that can grow in tandem with the organization. Chief technology officers (CTOs) and chief information officers (CIOs) are demanding domain-/user-specific functionalities in sync with business requirements.
New analysis from Frost & Sullivan (http://www.ITservices.frost.com), Enterprise Application Software Market Overview and Trends, finds that the market earned revenues of over $715.9 million in 2008 and estimates this to reach $3802.0 million in 2015. The study deals with the challenges and issues faced by market participants in South Asia as well as the MENA region, dealing with these software solutions: enterprise resource planning (ERP), supply chain management (SCM), and customer relationship management (CRM).
If you are interested more information on this study, please send an e-mail to Caroline Lewis/ Nimisha Iyer, Corporate Communications, at caroline.lewis@frost.com / niyer@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.
"The on-premise model is still the preferred choice over the on-demand model, but organizations are analyzing the benefits of moving large-scale software expenses from their capital budget to their operating budget," says Frost & Sullivan Industry Analyst Santosh Kumar Sinha." Awareness about the on-demand/hosted model is spreading and more vendors are planning to provide applications on the hosted model."
The pessimistic global outlook is exerting pressure on organizations to do more with less. Conservative approaches toward IT spending have slowed the pace of EA adoption, but markets are slated to witness increasing growth with varied extent from 2010.
In the Indian EA software market, organizations that are directly dependant on the international market have displayed a cautious attitude while those operating within the domestic space were able to cash in on the demand upswing for EA. Increasing focus on small and medium businesses (SMBs) has translated into ERP vendor focus on more verticals such as insurance, power, and food and beverage.
Sri Lanka is characterized by the high presence of SMBs with small pockets, therefore most enterprises in the country cannot afford mainstream ERP or CRM or SCM products. Consequently, the market offers more opportunities for mid-range participants. Apart from the global recession, the internal political scenario has also impacted the adoption of EA here. However, government initiatives to promote IT and expected policies such as Free Trade Agreement are likely to improve development in Sri Lanka. The UAE comprises a niche market with a few verticals. Packaged products derive the demand for EA market with very little or no customization. Dominated by the SMB segment, this market offers great opportunities for tier-two vendors.
"Saudi Arabia is the largest market in the Middle East for EA, offering vast potential for EA implementation. Saudi Arabian organizations demand a high degree of customization for their applications and want a localized product," says Sinha. "Egypt has very low penetration in terms of EA since the presence of strong price-sensitive mid market enterprises fosters dependency on home grown solutions. But increasing footprints of international organizations in the region and growing demand from existing large enterprises is making Egypt a promising market."
The market has been monopolized by the ERP solution segment, which is expected to grow at a compound annual growth rate (CAGR) of 27.2 percent. However, companies are not opting for ERP systems with the full range of modules. They utilize only a few modules initially, hoping to install the entire package over time as business expands and needs intensify.
"Organizations are displaying a preference for an integrated CRM and SCM solutions with ERP especially in SMB sector," adds Sinha. "However, pure play CRM and SCM solutions are likely to gain traction as companies grow."
The customer-centric approach adopted by organizations is a major force pushing CRM software uptake. CRM will continue on its growth trajectory in the near future, as even the manufacturing sector is demanding entry-level CRM. The IT/ITES vertical will contribute significantly to the growth of this sector. Going forward, end users are likely to become more value sensitive, and price will not be a strong differentiating factor as mainstream vendors are also providing solutions at competitive price points.
Enterprise Application Software Market Overview and Trends is part of the IT Services & Applications Growth Partnership Service program, which also includes research in the following markets: Cloud computing including Software as a Service and Communication 2.0. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.
Enterprise Application Software Market Overview and Trends
P2CE
CONTACT DETAILS
Caroline Lewis, Corporate Communications - South Asia, Frost & Sullivan, +91 98217 37935, caroline.lewis@frost.com
Tanu Chopra, Corporate Communications - Middle East, Frost & Sullivan, +91 (22) 4001 3437, tanu.chopra@frost.com
Nimisha Iyer, Corporate Communications - South Asia & Middle East, Frost & Sullivan, +91 98200 50519, niyer@frost.com
KEYWORDS
MARKETING, BUSINESS SERVICES, IT, TECHNOLOGY
If you wish to change your Business Wire India selection please click on this link http://www.businesswireindia.com/media/news.asp and use your personal username and password to login.
Submit your press release at http://www.businesswireindia.com
No comments:
Post a Comment