ARC Report Predicts Continued Growth for SRM Market

Supply Chain Management Review staff -- Supply Chain Management Review, 2/8/2007

Continued globalization and outsourcing will drive a compounded annual growth rate of 8.2 percent for the supplier relationship management (SRM) application market over the next five years, says ARC Advisory Group. In Supplier Relationship Management Worldwide Outlook: Market Forecast and Analysis Through 2011, ARC predicts that the SRM market will reach $2.3 billion in 2011.

As outsourcing grows, ARC sees more companies looking for software that will help them better manage sourcing, supplier performance, and contract compliance. They will also want these solutions to facilitate collaboration between suppliers, purchasing, and product development. As a result more and more product lifecycle management providers are offering complementary SRM solutions.

The increasing number of software providers offering their applications on-demand via the Internet will also help grow the market.