06 Oct 1998
Dutch software giant Baan is set to join its rivals with the launch of an outsourcing service to aid delivery of its packaged software solution, writes Peter Branton.
Baan announced last week the formation of Baan Midmarket Outsourcing, which will provide services to Baan?s middle-market customers. The aim is to offer implementation, operations, technical support and on-going maintenance for a fixed monthly fee.
Baan is the last of the high-end packaged software suppliers to announce such a service. SAP, PeopleSoft, JD Edwards, and Oracle have already outlined their outsourcing strategies.
Industry watchers believe that moves of this kind are not money-spinners. Such service offerings are judged essential if suppliers want to capture middle-market customers without the resources to implement unwieldy ERP systems.
This market sector is experiencing rapid growth as these smaller customers look at implementing solutions.
Analyst the Meta Group forecasts that the ERP outsourcing market will rise from $1 billion (#600m) this year to between $6 billion and $8 billion in the next three to four years.
? Report by VNU Newswire.
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