India to Become US$2.3 Billion Revenue Market for CRM Offerings in 2023, Says GlobalData
The overall spending on customer relationship management (CRM) in India is set to reach about US$2.3bn in 2023, says GlobalData, a leading data and analyst firm.
According to GlobalData’s Market Opportunity Forecasts Model, the spending on CRM BPO services will account for a major portion (three-fourths) of the revenue while CRM applications will account for the remaining in 2023.
China and Japan will be the only countries ahead of India in terms of the potential overall CRM revenue with their overall revenue estimated to be US$8.0bn and US$5.6bn, respectively.
The CRM applications segment in India is estimated to grow at a compound annual growth rate (CAGR) of 3.3% during the forecast period, with the contribution from large enterprises expected to increase. In addition, the growth of CRM BPO across large enterprises is estimated to outpace the growth in SME segment.
Sunil Kumar Verma, Lead ICT Analyst at GlobalData, comments: “The information technology driven society today has led to the emergence of a global and competitive marketplace, leading to enterprises becoming increasingly customer centric. Amidst this backdrop, the demand for enterprise CRM applications is driven by their ability to attract, offer, satisfy and retain customers.”
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Over the years, CRM applications have undergone transition from being a single tool, which can be accessed from one medium to becoming a multi-faceted tool, which can be offered on cloud – operating across platforms and supporting a wide-range of scalability options. Additionally, they can also be leveraged to cater to the requirements of conglomerates operating across multiple verticals.
The availability of open markets, accessibility to real-time interactive broadcast platforms, widespread adoption of mass communication tools and knowledge of digital social media handles has further shrunk the barrier between enterprises and customers.
Sunil concludes: “The CRM applications market is expected to witness further growth, supported by the technological advancements like artificial intelligence (AI), machine learning (ML) and analytics platforms, which can be used across various social and mobile platforms. Hence, they should select CRM offerings which will enable them to connect, serve and engage with their new-age customers in a more effective manner to enhance customer experience.”