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ERP demand falling warns Forrester

Less CIOs planning on investing in tool despite a predicted increase in overall IT spending

CIOs are placing less of an emphasis on enterprise resource planning software during 2011.
CIOs are placing less of an emphasis on enterprise resource planning software during 2011.

The number of enterprises planning to invest in ERP solutions is expected to drop, despite predictions that overall spending IT will increase in 2011, according to a Forrester Research report.Of the 900 companies questioned by Forrester Research, only a quarter have plans to implement, expand or upgrade an ERP system. That figure is down from nearly a third last year. More significantly, 72% of CIOs questioned either have no plans, or are against the idea of investing in ERP.Despite that, the report's author Paul Hamerman stated that 2010 saw the ERP market recover from a ‘disastrous' 2009. According to Hamerman, the period saw vendors focus on developing their products further and bringing in new features, such as cloud integration, mobility applications and process modelling.