According to ARC Advisory Group, customer relationship management (CRM) revenues sank in 2001 and, as the graph shows, should remain relatively flat from 2001 to 2002. The CRM market will begin to accelerate more rapidly in 2005, when the annual growth rate will finally exceed 10 percent, according to ARC.

The ARC figures reflect the psychology at work in many large IT shops today. After 18 months of cutting costs, many organizations aren't ready to invest in complex, costly projects such as CRM.