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| Gartner Dataquest Says Asia/Pacific Enterprise Software Application Industry Continues to Decline in 2002 |
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SYDNEY Australia - October 3, 2002 - The Asia/Pacific enterprise software application market will continue to experience a decline in new license revenue in 2002, but the market is positioned to return to positive growth in 2003, according Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).
The enterprise software application industry is experiencing mixed results in the various segments. Enterprise resource planning (ERP) revenue in Asia/Pacific is on pace to decline 9 percent in 2002 and supply chain management (SCM) is forecast to drop 9 percent. Meanwhile, in the customer relationship management (CRM) market, revenue will increase modestly. The increase in CRM license revenue has been mainly attributed to demand from marketing and the call/contact centre segment. Through 2006, CRM will be the fastest-growing segment of the enterprise application software market. While the CRM market is showing positive growth in Asia/Pacific, this growth has slowed compared to previous years. Gartner Dataquest analysts said this indicates a weakness of the application software market. "One of the main causes for the industry's poor performance has been the struggling economy across the region," said Pranav Kumar, principal analyst for Gartner Dataquest's IT Services group. "Additionally, there has been a fundamental shift in buying behavior, as buyers become more cautious about committing resources for software." As the biggest market across all sectors, Australia is experiencing mixed results. Being an advanced market economy, it will lead all countries in the region in CRM adoption and will remain the biggest market for CRM software in the region through to 2006. Australia was the early adopter of ERP, and the market for this software has peaked. In license revenue terms, it will decline 16 percent in 2002 and 10 percent in 2003. "While Australia is also the largest market for other applications (a 26 percent share of the ERP market and a 24 percent share of SCM), its dominance in the CRM marketplace in the Asia/Pacific is more pronounced," Kumar said. "Apart from the fact that Australian organisations are early adopters of technology, it has a relatively more mature market economy which makes it attractive to CRM vendors. "Being a mature market can be a double-edged sword: While it is good for CRM, it means that Australia is saturated in other areas such as ERP." The ERP market in the Asia/Pacific will total US$279.22 billion in 2002, down from US$307.99 billion in 2001. The ERP industry has struggled in countries such as Taiwan, Singapore and South Korea. "However, the news is not all bad, with certain segments of ERP registering marginal growth," Kumar said. "Human resource management software (HRMS) and enterprise application management (EAM) revenues are growing. Traditional ERP and financial management software (FMS) markets are more mature,therefore, these segments have struggled more than other markets." The SCM industry has experienced a similar fate with mixed results. Of SCM's three segments, supply chain planning (SCP) and supply chain execution (SCE) showed growth in 2001, while the third, e-commerce buying side, registered a decline. Supply chain execution will be the fastest-growing area of SCM through 2006. Gartner Dataquest expects the enterprise software application market in Asia/Pacific to show strong growth in 2003 due to the following factors:
Gartner analysts will provide further analysis on the state of the software industry during Gartner Symposium/ITxpo 2002, November 12-15 in Sydney, Australia. Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with a look at the future of IT. Attendees are responsible for more than $35 billion in IT spending for their respective companies, and rely on Gartner Symposium/ITxpo to gain insight into how their organisations can use technology to address business challenges and improve operational efficiency. For more information or to register for Gartner Symposium/ITxpo 2002, please go to www.gartner.com/symposium. Members of the press may contact Jo Lobban on 61-2-9459-4692 or at joanna.lobban@gartner.com to register for Gartner Symposium/ITxpo 2002. About Gartner Dataquest Gartner Dataquest is the recognised leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. About Gartner |
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Contact: Jo Lobban Gartner +1 02-9459-4692 joanna.lobban@gartner.com |
Contact: Michelle Chaperon, AUGUST.ONE COMMUNICATIONS + 02-9955-1866 michelle.chaperon@augustone.com.au |
