SugarCRM has a vivid association of customers, providers and partners in the United Kingdom . Sugar is being used by wide range of companies from those having as less as 5 people team to 5000+ employee strong companies. Though SugarCRM is primarily a Cupertino based company, due to a large footprint in UK, it has established a presence by having an office in London.
We set upon ourselves the task of analyzing the UK market in depth. In this article we are presenting the approach taken and key results of our analysis. During the course of this article we came across many questions and we have tried to find reasonable explanation of the same. It may be noted that UK came across a different market as compared to other geographies. It has proportionately higher number of healthcare and government / non-profit. Also we analyzed SugarCRM Development companies to try to drill down on their size and strengths.
Analysis of Customers using SugarCRM in UK
There are different ways of looking into the customers which are using the solution. The foremost is the distribution of customers across verticals versus second is analyzing them on basis of company size. Our team analyzed the publicly available information from various sources to come up with the following analysis. Please read this with the disclaimer that we don’t claim that this information is 100% complete or accurate.
How did we analyze the SugarCRM UK related Customer data
Before you step further, it might be important to let you know on how we went about doing this analysis. We did an exhaustive secondary research on the web to get the list of providers in UK as well as their customer stories. SugarCRM’s official website along with the partner directory was useful to an extent as well. However the most useful resource was focused social media groups.
Industry verticals wise distribution
The industry-wise analysis reveals that the most popular verticals where SugarCRM is being used is the professional services. This wasn’t actually a surprise for us given the fact that most of the customers in this segment were on look out for a better customer management to sell their services in a better manner or to integrate their application with SugarCRM. What come out to be surprising is the second segment – Health Care. Almost every 6th implementation came out to be related to healthcare segment followed by logistics and distribution.
Company size wise distribution
It can be seen that though almost half of the customer base is formed by small companies with less than 50 employee, SugarCRM has been gaining ground with enterprise class customers as well. Coca Cola , Despegar and Loomis UK are such enterprise class customers which the platform can boast of. SugarCRM has been able to replace other applications like Goldmine, Salesforce and Zoho for many UK customers.
SugarCRM Providers / Developers / Partners in UK
The second angle to the story is about the developers / providers of SugarCRM in UK. We found out that demand of SugarCRM developers as a percentage of total IT requirement is gradually increasing. The percentage was 0.05% at the start of 2007 whereas now it is 0.2%. Given the size of UK’s IT market this is a huge jump and it can be safely said that SugarCRM has been able to expand its footprint in UK in the last few years.
There are 14 official SugarCRM partners in UK and many independent developers or freelancers providing SugarCRM services to the market (many from Ireland). However shortage of skilled manpower and to increase the margin, they rely on off-shoring portions of their work to other parts of the world. An average billing rate for a UK based consultant varies from $50 – $100 per hour whereas similar profile is available at $18 – $30 per hour in India and other South East Asian countries.
From the chart above, it can be seen that most of the consulting companies in UK servicing SugarCRM customers have 10-20 team strength. This is of course because SugarCRM projects are faster to deliver and also employee costs in UK are much higher and bench strength cannot be afforded. Hence the companies resort to outsourcing projects to Asian countries like India which are much more affordable and qualified consultants are much larger in number.
Social Media / Forums
Of the various social forums, we found that most of the participation from this community happens in SugarCRM UK group on linked in, SugarCRM community and SugarCRM facebook group. Given the numbers and strong ecosystem, it would thus be fair enough to say that Social Media for the market is under-utilized / not focused.
Veon’s SugarCRM credentials in UK
Veon provides cutting edge solutions on SugarCRM ever since it was in version 4.x. Since then the company has become one of the top outsourcing destination for customers and companies alike. As on date we have worked for customers along the globe and that too in French, German and Spanish languages apart form English. Following are some customers in UK where we have done successful implementations.
Mend Central : Mend Central is an enterprise is for reducing worldwide overweight and obesity levels. It was running on Salesforce.com and wanted to migrate to SugarCRM and save on license cost along with addition of many new features like Territory Management, workflow based alerting mechanism and intense reporting mechanism. Read the full case study here.
USB Key4U: USBKey4U provides personalized USB drives for corporate gifting.Its customer base is spread across North America and Europe whereas the manufacturing is based out of China. It was looking at an online solution which can help track the orders till the time it was delivery and invoice.
Chartered Development:Based in Exeter, Chartered Developments provides lead generation for law firms and accountants. It has built a platform on SugarCRM which helps the companies generate interest and prospects in a much faster way. Traditionally Chartered Developments was running on Goldmine. Veon helped them in migrating to SugarCRM and also in developing the platform required as per their needs.