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CRM Hosting

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ALSO CALLED: Hosted CRM, CRM Hosting Providers, Hosting, CRM Application Service Providers
DEFINITION: Hosted CRM is an arrangement in which a company outsources some or all of its customerrelationship management (CRM)functions to an application service provider (ASP). The hosted CRM model is said to increase returnon investment (ROI) bydecreasing costs and allowing a company to focus more resources on its main business areas.In-house CRM, on the other hand, while more expensive, is also said to allow  … 
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CRM HOSTING DEFINITION (continued): …  more customization.Companies offering hosted CRM include Siebel, Salesforce.com, and UpShot.The hosted CRM model is most prevalent in small-to-medium size companies, especially those whodon't already have well-established CRM processes. According to a study from Nucleus Research, over80% of companies that outsourced CRM achieved a positive ROI. The study reported that problems withthe traditional in-house CRM model include high software and consulting costs, ineffective useradoption, and poor management. However, because in-house CRM can be tailored more specifically tothe particular needs of … 

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