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The Rise of CRM Services

Patrick Wachter examines the latest developments in the CRM services market and how vendors are addressing the particular requirements of end users.

By Patrick Wachter

From Computer Business Review Online January 2006

Excerpt from article

For companies that have existing CRM systems, the frustrations with overcomplicated technology, inconsistent data and ultimately a lack of use have led to an increase in demand for quick and efficient CRM engagements with demonstrable ROI, according to Guy Tweedale , MD for Northern Europe at Saratoga CRM , a CRM software and services provider.

"Companies want projects that run three to four months, not three to four years," Tweedale says, noting that this thinking has led to a noticeable shift away from some of the big software vendors to smaller firms that can still manage large enterprise projects. Tweedale also says that some of his clients are rejecting bigger CRM application suppliers for their partnerships with and perceived bias toward major consultancies such as Accenture or Logica CMG.

"Customers recognize than an A-to-Z solution isn't available, so they concentrate on fixing one problem, and breaking down their CRM projects into different pieces," Tweedale says. He adds that some of the most common services work he sees includes second-phase integration projects for better data exposure and overhauling and simplifying customer service processes, particularly around applications for managing complex documents such as contracts. And the add-on tools that vendors are adding to their clients' systems incorporate some of the new CRM functions developed over the past one to two years, including real-time data analysis, interactive forecasting, more deductive interfaces and automatic user scripting.

Saratoga 's services revenue is split between implementation work and add-on offerings, although it tilts toward the former during new business booms, Tweedale says. The company sees roughly one service dollar for every two software dollars, which is a heavier licensing mix than the more common ratio among CRM specialists of three to four services dollars for each software dollar.

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