A rise in business fraud and misconduct cases boosted the investigative services market.
Los Angeles, CA (PRWEB) April 25, 2014
Investigative services have a buyer power score of 3.3 out of 5.0. This score reflects moderate negotiating strength for buyers. Demand for investigative services has remained strong over the past three years, causing prices to rise. Companies across nearly all sectors have sought ways to address potential business threats arising from financial reporting fraud, bribery, money laundering or other related business misconduct. According to market research firm IBISWorld, this rising demand, coupled with strengthening corporate profit levels and an increasing number of businesses is expected to drive prices for investigative services higher in the next three years. Although rising prices have hurt buyer negotiation power, buyers have benefited from low price volatility, which has reduced the likelihood of drastic price shifts.
Buyers currently benefit from low market share concentration, and many new suppliers are entering the market to take advantage of the growth in demand for investigative services, giving buyers a greater selection of vendors. Larger vendors with diverse consulting operations have started to provide investigations and dispute services as a means to bolster their portfolios, further increasing the intensity of competition among vendors. Current major suppliers include Ernst & Young, Deloitte Touche Tohmatsu, KPMG International, PricewaterhousCoopers and G4S PLC. Despite a competive pricing environment due to the competition, buyers do face some threats to their purchasing power, says IBISWorld, with suppliers obtaining moderate to high profit margins for their investigative offerings. Sustained demand will make it difficult for buyers to negotiate prices down for their cases.
The purchasing process will provide both opportunities and drawbacks for buyers. Internal investigations are crucial for business owners, often requiring the assistance of knowledgeable consultancies that can develop specialized solutions to help prevent or address financial and reputational risks. The potential damage that buyers face in high-stakes disputes or legal inquiries related to business misconduct shifts negotiation power more toward suppliers, given the high value they bring through their investigative services. Nevertheless, buyers will still benefit from other purchasing factors, such as the low total cost of ownership, low supply chain risk and moderate availability of substitute services. For more information, visit IBISWorld’s Investigative Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of investigative services. Suppliers in this market include consulting firms and private investigators that help buyers find, prevent and respond to issues involving alleged or suspected fraud, compliance violations or other forms of misconduct. Investigative services can address issues such as bribery, investment schemes, money laundering, data breaches, cyber fraud and financial reporting fraud. Information obtained through these investigations can be used as evidence before courts or investigative committees. Private investigative work is discussed only in terms of its commercial application. This report does not cover insurance investigative services or credit investigative services.
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Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
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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.