Gartner Finds BPM Spending Set To Rise Significantly; Sees Market Shifts
Worldwide, businesses will spend significantly more on business process management (BPM) projects in 2011, according to a global survey by Gartner Inc. Ramp-up in BPM investment are being fueled by “return-to-growth” strategies at many companies, according to the Gartner analyst who managed the study.
Worldwide, businesses will spend significantly more on business process management (BPM) projects in 2011, according to a global survey by Gartner Inc. Ramp-up in BPM investment are being fueled by “return-to-growth” strategies at many companies, according to the Gartner analyst who managed the study.
The survey respondents were optimistic about spending on BPM, with 54% telling Gartner they plan to boost BPM spending by at least 5 percent, and nearly 20% planning to increase their BPM budgets by more than 10% -- in 2011 alone, according to Teresa Jones, principal research analyst at Gartner.
Responses differed significantly worldwide regarding the average initial investment in a BPM project within their organizations, Jones noted.
Despite the bullish outlook for BPM, Gartner’s survey found prospective customers looking for tactical and cost-efficient solutions rather than full enterprise-wide BPM suites. The overall BPM market is changing, Jones commented, as more organizations consider SaaS (software as a service) subscriptions to save money, and that fully two-thirds (66%) of BPM projects are funded by line of business, not by IT.
“Many organizations do not aim to achieve full process automation throughout their enterprise; most people improve process by process,” Jones said in a statement. . “The survey findings indicate that users might want some BPM software capabilities but not necessarily a full blown BPM [suite]. Understanding the real benefits and how to measure them will help organizations create better business cases and get the expected business results,” she added.
"The survey findings indicate that users might want some BPM software capabilities but not necessarily a full blown BPM [suite]"
Teresa Jones
Principal Research Analyst
Gartner
Gartner found exceptional BPM growth on tap for companies in Asia and the Pacific Rim. “Many countries in Asia/Pacific are exhibiting strong economic growth, which correlates well with increased IT spending generally,” said Ms. Jones. “In addition, BPM technologies can be used to create highly flexible business applications, which are often needed to support rapidly growing businesses.”
The most common initial BPM investment was between $100,000 and $200,000, which is low in comparison with many BPM suite (BPMS) implementation projects. [In Asia/Pacific initial BPM project values were between $50,000 and $100,000, reflecting lower prices for software and services.]
The Gartner research, entitled, “BPM Survey Insights: Most BPM Budgets Set to Increase,’ surveyed nearly 600 mid-to-large end user organizations across 14 countries worldwide in the third quarter of 2010 to understand adoption patterns, preferences and investment plans related to BPM.









