Demand for BPM and Financial Analytical Applications will Drive ERM Market Spending to US$2.08 billion by 2010 in Asia/Pacific (excluding Japan), says IDC

07 September , 2006

Singapore and Hong Kong, September 07, 2006 – According to IDC's latest study, "Asia/Pacific (excluding Japan) Enterprise Resource Management Applications Forecast and Analysis, 2006-2010" (Doc #AP32-C120706-06), the Asia/Pacific (excluding Japan) applications market, valued at US$1.26 billion in 2005, is expected to grow steadily at a five-year compound annual growth rate (CAGR) of 10.6% to reach US$2.08 billion by 2010.

"As fuel prices and raw material costs continue to increase, enterprises have become more vigilant of the rising operational and production costs that will affect their bottom line. They therefore need quick and accurate access to operational information that will help to improve cost management and facilitate the decision making process," says Alan Tong, Research Manager of Asia/Pacific Enterprise Applications Research at IDC . "IDC therefore expects that Business Performance Management (BPM) and Financial Analytical Applications will become the main drivers of the ERM market."

China continues to dominate the market with an estimated spending share of 31.1%. This is followed by Australia and India with approximately 24.8% and 9.5% market share by revenue, respectively. The growth in the region is driven by adoptions from small medium businesses (SMB), as well as the corporate compliance and international accounting standards that have pressured some companies to upgrade their ERM systems. Furthermore, the increase of exposure to global and regional competition has forced companies to adopt IT to streamline their operations.

Financial applications dominate the ERM applications market in APEJ in 2005 with 44.8% market share at US$ 565.3 million. Human capital management and payroll applications contributed 19.7%, and procurement software 8.4%. The five-year CAGR for financial applications is expected to reach 7.9%, compared to BPM and Financial Analytical application estimated at 16.3%, which is the highest for the forecast period. This is followed by enterprise asset management applications with a five-year CAGR of 15.9%

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