Dataquest Says Worldwide Customer Service and Support Applications Market Grew 47 Percent in 1997
The Market Shows No Signs of Slowing Down this Decade
San Jose, Calif., February 9, 1998—As customer services departments examine new ways to support their current client base, the worldwide customer service and support (CSS) applications market is thriving as the market grew 47 percent in 1997, with revenue reaching $290 million, up from $197 million in 1996, according to Dataquest, a market research unit of Gartner Group, Inc. (NASDAQ: GART). Dataquest analysts said the CSS application market will continue to prosper with revenue forecast to surpass $1.7 billion by 2002.
"With the increased focus on the value of retaining and developing existing customers, CSS applications will be deployed at an increasing number of company sites rewarding vendors that have invested in developing those applications," said Carolyn DiCenzo, director and principal analyst in Dataquest’s Network, System, and Storage Management Software Worldwide program. "This market will continue to see high growth over the next five years, both as separately deployed applications as well as linked to sales and enterprise resource planning systems."
The battle among vendors for market share has been fierce. The top five vendors accounted for more than half of the total revenue for the CSS applications market in 1997 (see Table 1).
Table 1 Worldwide Customer Support Application Revenue Market Share Estimates Company 1996 Market Share (%) 1997 Market Share (%) Vantive 13 16 Clarify 15 15 Scopus 11 14 Pegasystems 8 6 Siebel - 5 Others 53 44 Total 100 100Source: Dataquest (February 1998)
CSS applications are used to support and manage relationships with external customers which is different than the help desk applications that are used by IS departments to support internal IT end users. Both application areas share key technologies, especially around the call center area. "This fast-growing market has wide industry appeal and provides vendors that previously focused on technologies to support the internal help desk market with a whole new market," said Ms. DiCenzo.
Additional information about this market is available in the Dataquest Perspective titled "Customer Service and Support: A Hot Market." [ http://gartner11.gartnerweb.com/dq/register/abstracts/n/ss/mww/dp98/02/nssmwwdp9802ab0001.html ] This Perspective defines the market and the required technologies, identifies the market leaders and their current share, and provides a five-year forecast.
To purchase this Perspective, or subscribe to Dataquest's Network, System, and Storage Management Software Worldwide program, please call 800-419-DATA. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com.
Dataquest, a unit of Gartner Group Inc., has been providing global market research and consulting services for the high-technology and financial communities since 1971. Dataquest provides worldwide market coverage on the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the information technology industry.
As the world's leading authority on IT, GartnerGroup provides clients with a wide range of products and services in the areas of IT advisory services, measurement, research, decision support, analysis, consulting and training. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community of more than 9,300 client organizations served by analysts in 80 locations worldwide. Additional information about the company is available on the Internet at http://www.gartner.com.