Telephone Support Service Procurement Category Market Research Report Now Available from IBISWorld

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Buyers of telephone support services have a moderate degree of negotiating power due to price-based competition, although moderate switching costs limit buyer power. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Telephone Support Services to its growing collection of procurement category market research reports.

IBISWorld industry market research
Prices are forecast to continue to rise as the economy continues to recover and more businesses seek to add value to the products and services with telephone support

Telephone support services have a buyer power score of 3.5 out of 5. “This score reflects a positive purchasing environment and low risk of price volatility associated with telephone support services,” says IBISWorld procurement analyst Andrew Krabeepetcharat. Suppliers have a low level of market share concentration, which promotes price-based competition and helps mitigate price growth. However, switching costs are moderate, as certain buyers need to provide training for telephone support staff to handle customer service requests.

Despite some factors working in the buyer's favor, buyers face the rising cost of telephone support services. “Prices have risen over the past three years due to growing demand from downstream markets,” says Krabeepetcharat. The overall recovering economy has allowed many businesses to improve their customer satisfaction through telephone support, allowing many suppliers to raise prices in response to the growing demand. While many suppliers have shifted domestic work overseas to countries with lower wages, many others are moving services back to the United States due to rising wage costs in maturing countries. Additionally, the majority of telephone support service suppliers have relatively low profit margins, thus reducing negotiating power for buyers. In light of these conditions, buyers should seek multiyear contracts in order to lock in current rates. Major suppliers in this market include Convergys Corporation, West Corporation, SITEL Corporation and TeleTech Holdings Inc.

Over the next three years, prices are expected to continue growing as the economy improves further and more businesses invest in improving their customer satisfaction levels through telephone support services. Increased technological innovation will also prompt price growth as telephone support services further integrate value-added features, such as voice recognition capabilities and simultaneous online support for clients. Despite this price growth, however, price increases are forecast to be steady and predictable with low volatility, benefiting buyers by reducing the likelihood of sudden price shocks and allowing for better financial planning.

For more information, visit IBISWorld’s Telephone Support Service procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of telephone support services. Telephone support services allow businesses to offer over the phone customer service and technical support related to goods or services sold. This report does not include call forwarding or telemarketing services.

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
Market Profitability
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
IBISWorld Inc.
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