Price growth for helpdesk and call center software is expected to accelerate in over the next three years
Los Angeles, CA (PRWEB) June 23, 2014
Buyers of helpdesk and call center software have a power score of 3.4 out of 5. This score reflects mixed pricing trends and moderate market risks. According to IBISWorld procurement analyst Andrew Yang, “an unfavorable market structure reduces buyer power, but pricing trends have been favorable for buyers, with prices remaining stable in the three years to 2014.” Although demand has increased steadily for helpdesk and call center software, stable input costs allow suppliers to keep their production costs low and maintain steady profit margins without raising prices. Moreover, helpdesk and call center software is still in the early stage of its product life cycle and providers keep prices low to encourage adoption by buyers. However, heightened demand from a recovering economy and growing wages will drive prices higher in the three years to 2017.
Buyers face moderate market risks. Suppliers require continuous access to telecommunication and network services because they provide this software through the internet. “If suppliers are not able to procure these services, buyers may not be able to use the suppliers' software,” says Yang. A lack of financial stability also compounds market risks. Many suppliers are small to midsize companies with very low or even negative profit margins. Buyers may find their access to software disrupted in the event that a supplier goes out of business. However, buyers do benefit from the low volatility of price drivers, which indicates that buyers face very little risk in terms of severe price fluctuations. Low price volatility is beneficial for buyers because it allows buyers to better predict prices and manage budgets.
An unfavorable market structure presents buyers with a high risk of being locked in with providers. There are very few substitutes for helpdesk and call center software, and switching costs are high. Buyers may have difficulty taking appropriate action if their supplier lowers the quality of their software or raises their prices. As such, buyers should take their time in evaluating their providers and ensure that the software provides all the desired features and functionality. The top four vendors in the market are Salesforce, Genesys Telecommunications Laboratories, Interactive Intelligence, and Aspect Software.
For more information, visit IBISWorld’s Helpdesk and Call Center Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of helpdesk and call center software. Helpdesk and call center software manages inbound and outbound calls with customers and is typically used to support sales and customer support processes. This report focuses on software-as-a-service (SaaS), or “on-demand” helpdesk and calls center software, rather than software-as-a-product (SaaP), or "on-premise" helpdesk and call center software. This report excludes customer relationship management software as well as hardware used in call centers.
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.