Feature Article: Cambashi Country Observatory predicts future growth in expenditure on software

by Christine Easterfield

This quarter's Cambashi Country Observatory shows how the trend in spending on technical application software products - not surprisingly - is downward in general terms and particularly in some of the more mature markets of Western Europe and the US. However, taking a closer look at the data shows there are pockets of growth to be seen in the emerging markets - fuelled by government sponsored development programmes that will have the best chance of surviving efficiency measures elsewhere.

While the outlook for 2009 is little short of grim, the upswing will come as recovery programmes targeting infrastructure development and refurbishment come on line. And they will. Governments in the emerging nations are conscious that now is the time to ensure their low-cost workforce is best placed to deliver services to the corporations of the west; governments of the developed nations cannot allow their economies to face recession without intervention. All of this work needs planning, design and management, and this will drive continuing investment in robust application software.

For sales and marketing teams, this makes 2009 the most challenging year for a very long time. Patterns of demand are changing, so keeping marketing initiatives relevant is harder and resource plans have to track these changes. In a downmarket it is more important than ever that these things are right - because every sale will be fiercely contested.

Every potential customer is focusing on ways to improve efficiency. Reducing internal costs is the first step and possibly the most direct - I expect we have all seen travel bans, recruitment freezes and investments held back. Gaining attention for even strong business cases becomes far from straightforward.

It will be important to remember that demand, though reduced overall, is still there. Segmentation to find the best opportunities will help focus value propositions and marketing initiatives. Sales teams need the right industry knowledge, a compelling business case and a clear line of sight to the opportunities to equip them for success against increasingly intense competition.
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The Cambashi Country Observatory is one of a suite of resources that enable clients to assess market size, growth, movement and potential. Specifically aimed at the technical application software market, these tools can be used alone or in combination to support business planning at local, regional and global levels. Latest conclusions from the Cambashi Country Observatory Q1 09 release can be seen in the press release.