Website Design Services Procurement Research Report Now Available from IBISWorld

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Prices for website design services have been rising due to increasing internet access and more access to information online, but buyers can control the cost of such services by providing well-defined project specifications, reducing the time and effort required from suppliers. To help procurement professionals make better buying decisions, business intelligence firm IBISWorld has added a report on the procurement of Website Design Services to its growing collection of procurement research reports.

IBISWorld industry market research
Despite slower growth in broadband internet access in coming years, rising corporate profit and number of businesses will drive demand for website design services.

Website design services have a buyer power score of 3.4 out of 5. This score reflects positive, but somewhat limited, negotiation power for buyers. “Prices for website design services have been rising consistently because of increasing internet access and more access to information online,” according to IBISWorld procurement analyst Erich Abellera. Businesses are also earning record high profit, resulting in increased advertising expenditure. These trends are expected to continue during the next three years, during which digital media will continue to expand, driving steady price growth. In addition, a lack of substitute services further limits purchasing power. While other forms of advertising are available, none have the global reach, functionality and interactivity that websites do.

Fortunately for buyers, other market conditions help boost their ability to negotiate. “The website design services market is highly fragmented, and the majority of suppliers are freelancers,” says Abellera. Although large advertising agencies provide web design services, an overall low level of market share concentration results in more price-based competition, with a wide range of price options from a high number of suppliers. Furthermore, website design service prices generally have a low level of volatility; the greatest input cost for suppliers is wages, so buyers experience very little risk of prices suddenly increasing. There is also little risk in the supply chain of website design services, reducing the likelihood of any disruptions in service.

The main factors affecting price are time, size and the complexity of a project. Buyers can help control the cost of website design services by providing clear, well-defined project specifications, reducing the time and effort required from suppliers. The type of supplier also affects pricing; for example, larger firms generally offering more services but cost more than smaller firms. Some of the major vendors include WPP PLC, Omnicom Group Inc., Publicis Groupe SA and Intrepublic Group of Companies Inc. By selecting the right supplier for a website, buyers can help ensure satisfactory work while avoiding inflated prices.

For more information, visit IBISWorld’s Website Design Services procurement research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of website design services. These services include website coding, interface design and website maintenance. Although web design is closely related to graphic design, and suppliers often provide both of these services together, this report focuses solely on website design.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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