Domestic suppliers will increasingly have to compete with overseas companies that offer services for lower rates. This trend will cause price growth to slow further in the next three years.
Los Angeles, CA (PRWEB) February 18, 2014
Technical writing services have a buyer power score of 3.9 out of 5. This score reflects positive market conditions that increase buyer negotiation power. Over the past three years, prices have grown at a slow rate, and price growth is forecast to be slightly slower over the next three years. Slow price growth is largely the result of market competition. “The technical writing services market is highly fragmented, and the majority of suppliers are small firms and nonemployers,” says IBISWorld procurement analyst Erich Abellera. “The low level of market share concentration encourages price-based competition among suppliers.” In addition, domestic suppliers compete with overseas companies that offer lower rates. These factors have helped to moderate price growth, and the increasing trend of offshoring will slow price growth further.
Buyers also benefit from a low level of volatility in prices. Demand for technical writing services is fairly consistent, and suppliers serve clients in multiple sectors. The most significant cost to suppliers consists of wages. Suppliers do not depend on other critical inputs that could fluctuate in price or quality. “Although average wages are high, technical writing services do not experience labor shortages, and wage growth is moderate,” adds Abellera. “Thus, there is little risk in the supply chain of technical writing services, and prices are unlikely to increase suddenly.”
While purchasing power is high overall, a few factors limit buyer negotiation power somewhat. Technical writing services have a low level of substitutes. Technical writers must make complicated information easy to understand for non-technical readers; therefore, technical writing requires effective communication skills as well as some technical knowledge. This level of specialization is the reason technical writers have higher wages compared with other writers, and buyers must select suppliers that are well qualified. Although documentation can be created in-house, programmers, software developers and other technical positions often do not have the writing experience to create high-quality written material that can be easily understood by consumers. For more information, visit IBISWorld’s Technical Writing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of technical writing services. Technical writing is used in technical, occupational and specialized fields, such as medicine, computer applications, finance and environmental sciences. Specific end products include instruction manuals, academic or scientific articles, business proposals and web content. Technical writing makes information more accessible to readers of this information, and accuracy and clarity are often favored over style. Technical writing does not include creative writing or other services such as resume writing, court reporting and transcription.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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 http://www.ibisworld.com or call 1-800-330-3772.