21 December 2003
Enterprise Resource Planning (ERP) software is expected to gain a substantially bigger market share in Gulf Cooperation Council (GCC) countries in next five years. A new study by Madar Research forecasts the value of this market in the GCC at close to $270 million by end 2008.
The forecast is based on a compound average growth rate (CAGR) of 15 percent over the period 2003-2008. ERP, which automates and integrates various internal and external business processes such as management of human resources, customer relationship, inventory and financials is a $30 billion global industry according to end-2003 estimates. Other than deployment at large enterprises, ERP has only recently started to pick up in the GCC, and its use is still much below levels prevalent in the industrialized world.
“As ERP is becoming less expensive to implement and maintain, more of GCC’s large to medium companies are investing in its component applications or modules, such as customer relationship management (CRM) and supply chain management (SCM),” said Abdul Kader Kamli, president and research director of Madar Research Group.
“Customizable, packaged ERP suites will increasingly gain new customers from the region’s medium-sized companies. These customers are driven mainly by their need for better business information and cost savings, in addition to the need to accommodate e-business model and e-government requirements,” said Kamli. He added that globalization and international competition that full admission to the World Trade Organization will bring to GCC states in 2005 were incentives for some companies to implement ERP solutions.
The study, on the other hand, shows that lack of executive support and understanding of the benefits that ERP can deliver to GCC businesses is the strongest inhibitor for companies to adopt ERP technologies.
The findings of the Madar Research study, which is based on a survey of all major ERP vendors in the GCC, include key market accelerators and inhibitors, 2003 market estimate and 2003-2008 forecasts for all GCC states, segment breakdown of ERP market, leading client industries and growth sectors, UAE market characteristics, trends and major installations. The full study was published in November issue of Madar Research Journal.
-Ends-
About Madar Research Group
The Madar Research Group is a Dubai Media City registered company and part of the Bin Zayed Group. The company was established in June 2002 to carry out primary and secondary research on the Knowledge Economy in the Arab world. Products and services from Madar Research Group include Madar Research Journal, Annual Research Books, Custom Research, Market Intelligence, Industry Newsletters and consultation.
Telephone: +971-4-3903059 or 3903051
Fax: +971-4-3904688
email: jarrah@madarresearch.com
URL: www.madarresearch.com
Enterprise Resource Planning (ERP) software is expected to gain a substantially bigger market share in Gulf Cooperation Council (GCC) countries in next five years. A new study by Madar Research forecasts the value of this market in the GCC at close to $270 million by end 2008.
The forecast is based on a compound average growth rate (CAGR) of 15 percent over the period 2003-2008. ERP, which automates and integrates various internal and external business processes such as management of human resources, customer relationship, inventory and financials is a $30 billion global industry according to end-2003 estimates. Other than deployment at large enterprises, ERP has only recently started to pick up in the GCC, and its use is still much below levels prevalent in the industrialized world.
“As ERP is becoming less expensive to implement and maintain, more of GCC’s large to medium companies are investing in its component applications or modules, such as customer relationship management (CRM) and supply chain management (SCM),” said Abdul Kader Kamli, president and research director of Madar Research Group.
“Customizable, packaged ERP suites will increasingly gain new customers from the region’s medium-sized companies. These customers are driven mainly by their need for better business information and cost savings, in addition to the need to accommodate e-business model and e-government requirements,” said Kamli. He added that globalization and international competition that full admission to the World Trade Organization will bring to GCC states in 2005 were incentives for some companies to implement ERP solutions.
The study, on the other hand, shows that lack of executive support and understanding of the benefits that ERP can deliver to GCC businesses is the strongest inhibitor for companies to adopt ERP technologies.
The findings of the Madar Research study, which is based on a survey of all major ERP vendors in the GCC, include key market accelerators and inhibitors, 2003 market estimate and 2003-2008 forecasts for all GCC states, segment breakdown of ERP market, leading client industries and growth sectors, UAE market characteristics, trends and major installations. The full study was published in November issue of Madar Research Journal.
-Ends-
About Madar Research Group
The Madar Research Group is a Dubai Media City registered company and part of the Bin Zayed Group. The company was established in June 2002 to carry out primary and secondary research on the Knowledge Economy in the Arab world. Products and services from Madar Research Group include Madar Research Journal, Annual Research Books, Custom Research, Market Intelligence, Industry Newsletters and consultation.
Telephone: +971-4-3903059 or 3903051
Fax: +971-4-3904688
email: jarrah@madarresearch.com
URL: www.madarresearch.com
© Press Release 2003
