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Home » Midsize Enterprises Will Increase ERP Budgets by 5.1% in 2008

Midsize Enterprises Will Increase ERP Budgets by 5.1% in 2008

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December 19, 2007
From AMR Research/Maura McGreevy

According to AMR Research new study called "Midsize ERP Spending Report, 2007-2008," midsize enterprises will increase their ERP budgets by 5.1% on average in 2008. Growth in ERP spending was fueled by several factors. As midsize organizations fight for market share against increasingly diverse global competition, increased profitability, revenue growth, and customer satisfaction become priorities. And, with globalization, the pool of potential customers is ever-growing, creating a need for streamlined processes to help meet demand.

"We found that midsize companies, whether divisions of large enterprises or stand-alone small businesses, are prepared to make the necessary investments to support profitable growth in today's global economy," said Simon Jacobson, senior research analyst at AMR Research.

The survey found an increased interest in pure software-as-a-service (SaaS) and on-demand purchasing models. 39% of larger midsize companies (500-999 employees) are planning to purchase SaaS or on-demand software in 2008. And the numbers are rising. AMR Research predicts that over the next three years these new purchasing models will become a mainstream purchasing method.

In addition, by 2010, 43% of companies would like to employ a single, global financial and shared services ERP system.
http://www.amrresearch.com

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