The Australian Enterprise Resource management (ERM) software market is currently worth $374 million and will show a compound annual growth rate of 6.3 per cent until 2007, according to market analysts at IDC.
SAP retains a market stranglehold among ERM software vendors with a 34 per cent share, followed by PeopleSoft (8 per cent) and Oracle (7 per cent).
IDC predicted an increased focus on integration, demand for greater efficiencies from existing technologies and corporate anxiety over financial reporting and transparency will drive increased investment during the next four years.
“Businesses are looking to operate systems in an integrated way, with processes that cross geographical, functional or enterprise boundaries,” senior IDC services analyst, Phillip Allen, said.
“Companies are also looking for solutions which offer a clear link between spending and improved business results, as well as solutions that can bring about cost efficiencies from existing investments.”
Allen said a “cost containment” environment meant ERM deployment was currently slow, creating a buyer’s market for technology vendors.