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Investment in customer relationship management (CRM) software is set to explode this year, according to the latest study from AMR Research.
The firm has predicted CRM spending will hit $10.8bn globally in 2004, representing a $1bn increase compared with 2003.
Nigel Montgomery, European research director at AMR, said CRM technology is a necessity for any organisation attempting to improve business processes.
"In the past people were buying CRM just to improve customer relationships and not management processes," he said.
"CRM for CRM's sake does not fulfil its potential, but tying it with the supply chain can give clear return on investment."
The combination of this and public-sector IT initiatives mean 2004 could be a bumper year for the channel selling CRM.
Chris Chittock, managing director of SAP reseller Diagnol, said sales of CRM at the firm are expected to increase this year.
"CRM is not really a point solution running things such as marketing campaigns. If users integrate it with their supply chain they get a much better view of customers and can improve performance," she said.
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