So says a Gartner survey that reveals organizations plan to increase their software budgets an average of 1.53 percent in 2010. Although North America will continue to see a slight spending decline, there is a clear growth opportunity in developing nations. Specifically, software budgets will rise 2.54 percent in Latin America and 4.34 percent in the Asia/Pacific.

"Software vendors should continue to build, fund and invest in software sales and marketing programs, even during tight market conditions to maintain customers and expand revenue opportunities," said Joanne Correia, managing vice president at Gartner. "A market downturn is a disrupter that creates great marketing and sales opportunities for organizations prepared to take advantage of the right products, marketing programs, and funding."

Solid Business Advice

With this growth in mind, Gartner is making several recommendations for software vendors heading into 2010. For starters, the research firm said, vendors need to differentiate their software products with key integration technologies and offer vertical market solutions to reach a diversified customer base.

Gartner said software vendors also need to work on strengthening relationships and building trust with IT departments and ultimately deliver results that truly enhance the client's business. Finally, the firm said, software vendors need to align go-to-market functions with the maturity of the demand. Gartner stressed that tactics in an emerging or high-growth software market are not appropriate in consolidating or maturing markets.

"Vendors need to use a consultative selling approach to understand and then address the most critical needs of IT and the business of their current and prospective clients," Correia said. "Software vendors also need to develop a stronger presence through partnerships or an extended sales force in emerging markets where higher budget increases are expected."

CFOs Looking to Invest

Gartner isn't the only organization prophesying a software spending rebound. A Robert Half Management Resources study of chief financial officers reveals companies will look to bolster their IT systems as the economy improves. In fact, 40 percent of CFOs cited IT as the place they are most likely to put their investment dollars when the market recovers.

"As companies emerge from the recession and become more profitable, they will begin to focus on shoring up critical business applications and technology infrastructure ," said Paul McDonald, executive director of Robert Half Management Resources. (continued...)

1  |  2  |  3  |  Next Page >