The expanding capabilities and uses for technology boosted demand for asset recovery services as businesses sought to increase efficiency by upgrading their IT infrastructure
Los Angeles, CA (PRWEB) May 12, 2014
IT asset recovery services have a buyer power score of 3.2 out of 5.0. This score reflects moderate negotiating strength for buyers. Demand for IT asset recovery services has remained strong over the past three years because companies across nearly all sectors have sought ways to capture value from idle or outdated technology systems. The rapid pace at which IT assets evolve, coupled with strengthening corporate profit and increasing private investment in technology is expected to drive service prices higher in the three years to 2016. Although rising prices have hurt buyer negotiation power, buyers have benefited from low price volatility, which has reduced the likelihood of drastic price shifts.
The IT asset recovery services market is highly fragmented and very competitive. Major vendors in this market include Dell Inc., International Business Machines Corporations and Arrow Electronics Inc. Low barriers to entry have allowed new suppliers to enter the market to take advantage of the booming IT field, while large consulting firms have increasingly started to incorporate IT asset recovery services as a means to bolster their portfolio of offerings. Suppliers in this market can obtain moderate-to-high profit margins for their recovery services, and sustained demand has made it difficult for buyers to negotiate lower prices. On the other hand, the low level of market share concentration could provide an opportunity for buyers to leverage multiple offers to obtain more favorable pricing.
The purchasing process will provide both opportunities and drawbacks for buyers. IT asset recovery services are highly specialized, offering buyers few substitutes and shifting more negotiation power toward suppliers. Nevertheless, an efficient and effective asset recovery process will allow buyers to either recover capital from underutilized assets or realign their business infrastructure to offset the cost of future IT purchases. Buyers will also benefit from other purchasing factors, including the low total cost of ownership, low supply chain risk and minimal risk of vendor default. For more information, visit IBISWorld’s IT Asset Recovery Services procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of IT asset recovery services. Suppliers in this market help businesses maximize the value of end-of-life IT assets through reuse or divestment. Recovered IT assets may include computing hardware devices, network and data centers, software, and other related technology goods. Services may also cover the liquidation of excess IT inventory. Disposing of obsolete or underutilized assets can reduce internal costs for buyers while also helping them to recoup some of their original financial investment. This report focuses primarily on the consulting aspect of IT recovery planning, as opposed to buyback programs where a supplier simply purchases a buyer’s assets at a fair market value. This report does not cover IT disaster recovery services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
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.