ERP Spending to Rise Dramatically

Input projects federal spending on Enterprise Resource Planning (ERP) is expected to grow 33 percent, to more than $7.7 billion by 2010. According to the Reston, Va.-based researcher's latest Federal ERP MarketView report, spending on ERP hardware is expected to reach $832 million in fiscal year 2005, increasing to $1.1 billion in FY 2010. The ERP software market is expected to increase from $1.2 billion in 2005 to $1.6 billion in 2010. Input also expects professional services relating to ERP implementations to make up more than half of all ERP-related spending.

Chris Campbell, senior market analyst, federal market analysis at Input, says the majority of ERP spending will be driven by business-process re-engineering efforts. With a new focus on the Office of Management and Budget's Line of Business initiatives, Campbell sees ERP spending especially concentrated on financial management and human-resources management.

"Agencies have been consolidating systems under those lines of business and are looking for cost savings, which will push spending up a bit," Campbell says. Overall, he adds, government ERP investments cover the areas of financial, accounting and acquisition-management, human-resources, supply-chain and logistics systems.

id
unit-1659132512259
type
Sponsored post