While 2020 was a gloomy year for the global economy, the IT industry also took a hit as a direct result of the global pandemic, with more than 5% decline, but the enterprise software market remained unfazed.
In the last decade, enterprise software has become the fastest growing sub-segment of the IT industry, with year-on-year market growth frequently surpassing 10 percent. And the market revenue has more than doubled between 2009 and 2019. However, this isn’t an isolated growth, as virtually every other segment of the IT services industry has experienced tremendous growth.
Despite the negative impact of the novel coronavirus, 2020 was a good year for the enterprise software industry because the pandemic lockdown pushed many businesses online. Which accelerated the demand for video and chat software, and was a major win for the enterprise software development sector.
According to a new market research report, global IT spending on enterprise software is expected to reach USD 599 billion in 2021, an impressive 13.2 percent increase from the previous year.
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What is Enterprise Software Development?
Enterprise software is an application or technology that caters to the needs of businesses. These applications have the sole purpose of streamlining business processes and driving efficiency in the workplace.
Enterprise software systems are usually designed to meet the specific needs of a particular organization, these applications are uniquely made to solve certain problems and eliminate hurdles that hamper productivity.
An enterprise application software can be a simple communication tool or a complex marketing software. Businesses differ greatly, and so do their problems. And the larger an organization, the more complex the systems tend to be, and the more important automation becomes.
Such large organizations require enterprise application software to seamlessly automate workflow, streamline processes, and facilitate secure and smooth data transfer within the organization.
While enterprise software development is solely based on the needs of a company and uniquely varies from business to business, the entire development process is loosely the same and comprises three distinct stages; design, development and deployment.
Enterprise Software Systems
There are many unique enterprise applications that facilitate workflow in the various sections of a business. For instance, there are enterprise software systems that automate and manage different business processes, both in manufacturing industries and retail businesses.
Some of these include tools used to manage supply chain, accounting, inventory, sales, and various business processes. While the need for enterprise software is more glaring in large organizations, small and medium businesses also need bespoke enterprise systems to manage sales, accounts, internal communications, customer relations, etc.
With enterprise software gaining new highs in market growth, many more enterprise software sub-segments are also seeing massive growth. And these three segments have been particularly interesting; Customer Relationship Management (CRM), Enterprise Resource Planning (ERP) and Business Intelligence (BI).
CRM Software to Reach USD 43 Billion in Sales in 2021
While businesses generally strive to increase their customer base, they spend more on retaining existing customers. With customer relationship management systems, businesses can track and analyze customer interactions, cultivate relationships with customers, and convert prospects to paying customers.
CRM system provides a wide range of strategies and techniques for managing customer support, organizing marketing and automating sales. The CRM market has been growing exponentially year after year, and it’s estimated to reach USD 96.5 billion by 2028.
ERP Market to Hit USD 97 Billion by 2024
Enterprise resource planning is a management software that enables businesses to seamlessly consolidate different business operations into a unified database. This software aids in data collection and analysis, and provides access to real-time data for insight into business performance.
The ERP integrates customer relations, human resource management, supply chain operations, accounting, and other essential aspects of businesses. The demand for the ERP software has been steadily on the rise and its market is poised to reach USD 97 billion in overall revenue by 2024.
BI Market Will Hit Usd 33.3 Billion by 2025
As businesses rely more on data-backed decisions, technology-driven processes for analyzing business data to provide actionable insights continue to gain popularity. Business intelligence, especially cloud-based BI technologies, have continued to attract positive attention and market growth is expected to reach USD 33.3 billion by 2025.