The Turkish enterprise application software (EAS) market is set to expand at a compound annual growth rate (CAGR) of 9.3% over the next five years, according to the latest research from International Data Corporation (IDC).
Referencing its newly released ‘Turkey Enterprise Application Software Market 2014–2018 Forecast’ report, the global advisory and consulting services firm revealed that the market will reach a total value of $238.46 million in 2018, with the combined manufacturing, retail, and wholesale verticals being the biggest spenders during the forecast period.
“IT modernization initiatives and greenfield IT infrastructure buildout projects will remain the most important drivers of the Turkish EAS market during the forecast period,” says Yesim Arac, research analyst for software and services at IDC Turkey. “In addition, the country’s National Technology Foresight Program and the 10th Development Plan will continue to trigger large-scale projects and citizen-centric transformation of the public sector.”
The EAS market comprises enterprise resource management (ERM), customer relationship management (CRM), supply chain management (SCM), operations and manufacturing applications, and business analytics (BA) solutions, and different end-user sectors traditionally show a demand preference for one or more of these functional markets.
“Sectors such as combined government, healthcare, education, utilities, combined finance and manufacturing figure prominently in the government’s transformational initiatives and strategic plans,” adds Arac. “These sectors have a great potential to generate EAS spending across functional markets at different times. Over the course of the forecast period, organizations in these sectors will show increasing demand for ERM (human capital management, financial applications, and procurement applications) and CRM (marketing, contact center, and customer service applications) in particular.”
Regulatory factors will also remain an important driver of EAS spending growth.
It should be noted that, in addition to regulation and intensifying competition, increased EAS spending across verticals also relies on the continued improvement of various macroeconomic factors. “Vendors should diversify their product portfolios and push alternative service delivery models to trigger EAS spending,” says Arac.