ERP market outlook fine, says AMR

According to a report from AMR Research, the ERP market will grow at a 32% clip through the year 2003.

Even with Y2K hogging IT resources, AMR expects the ERP market to grow at a steady 22% pace in 1999. By 2003 the total revenue for ERP companies will top $66 billion, nearly four times the revenue generated in 1998, according to AMR's new report "Enterprise Resource Planning Software Report,1998-2003."

As Y2K projects wind down, companies will refocus their IT plans to extend their existing ERP systems into the supply chain, according to David Caruso, VP for AMR's Enterprise Application Strategies unit.

AMR added that vendors in the traditionally manufacturing-centered ERP market should look to tap into industries such as retail, insurance, and banking, and plan to expand their global reach. New revenue streams will also come from specialty services like ERP outsourcing, Internet portals, customer relationship management and E-commerce applications