IDC Forecasts Tech Sales & Marketing Expenses to Grow Faster Than Revenue in 2010

Increased Margin Pressure Portends Further Forced Alignments Between Sales and Marketing Organizations

FRAMINGHAM, Mass.--(BUSINESS WIRE)--The International Data Corporation (IDC) Executive Advisory Group forecasts that global sales and marketing expenses will to grow at 4.7% and 3.5% respectively in 2010, outpacing the projected 3.2% growth in worldwide IT spending. These expense gains will lead tech executives to accelerate their initiatives to improve the productivity and cost efficiency of sales and marketing.

“With sales costs increasing, the number of leads necessary to close a deal increasing, and the length of sales cycles increasing, sales organizations will have no choice but to ramp up their productivity to ensure survival in an highly competitive environment”

In addition, executives may continue to seek greater sales and marketing alignment through dramatic organization and reporting changes, as a way to solve the costly misalignments that have continually undermined sales and marketing integration and efficiency. Recent research from IDC indicates that over 20% of tech organizations with revenues of more than $1 billion have witnessed "significant" organization change during the past twelve months. A majority of senior tech sales and marketing executives expect this trend to continue throughout 2010.

"With sales costs increasing, the number of leads necessary to close a deal increasing, and the length of sales cycles increasing, sales organizations will have no choice but to ramp up their productivity to ensure survival in an highly competitive environment," said Michael Gerard, vice president, IDC's Sales Advisory Service. "Sales operations must be considered a strategic driver of process improvements across the sales organization in addition to its more tactical support function. Key areas of focus include sales enablement, customer intelligence, account planning, and pipeline health."

Within the typical tech marketing organization, IDC sees that executives have numerous opportunities for savings and efficiency. "Sales enablement, content audits, and campaign vs. product go-to-market programs are all great ways to save money, and to make customers happier at the same time," noted Rich Vancil, vice president of IDC's Executive Advisory Group.

IDC's 2010 Sales and Marketing Barometer Surveys were recently completed by the CMO Advisory Service and the Sales Advisory Service. These surveys are intended to take the pulse of marketing and sales executives in the information technology sector and to analyze the direction of marketing and sales resource expenditures and priorities during the next 12 months. Each survey will be published on IDC.com in the coming weeks. IDC also encourages that executives download and review IDC's Worldwide Sales, Marketing, and Market Intelligence Taxonomy, 2009: Guidelines for Cost Control and Resource Allocations (Doc #220099), which is available now on IDC.com.

About IDC's Executive Advisory Group

The Executive Advisory Group provides IT marketing and sales executives and their operations counterparts with critical insights and fact-based information to plan program and people investments, prepare marketing and sales operations, launch initiatives, and measure results. Both the CMO and Sales Advisory Services offer an annual subscription service, targeted mult-client studies, and custom engagements. As part of each subscription service, a peer-to-peer leadership board meets three times per year, where senior executives collectively problem-solve on difficult marketing and sales operations issues and processes. For more information on IDC's Executive Advisory Group, contact Michelle Blondin at 508-988-7579 and [e-mail].

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps business executives, IT professionals, and the investment community to make fact-based decisions on business strategy and technology purchases. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 45 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events Company. You can learn more about IDC by visiting www.idc.com.