Future price decline will be slowed by rising industrial production and private investment in software, which will stimulate demand for field service management software.
Los Angeles, California (PRWEB) August 09, 2014
Field service management software has a buyer power score of 4.8, reflecting very positive negotiating conditions for buyers. According to IBISWorld business research analyst Daniel Krohn, “FSM software buyers primarily benefit from the market's low level of concentration and the availability of open source software alternatives.” There are few barriers to entry for incoming suppliers, allowing new suppliers to enter the market in line with rising demand. Further, FSM software can be distributed online at marginal cost. As such, aside from brand name appeal, large top-tier suppliers are afforded few additional advantages, allowing small providers to effectively compete within the market. Together, these factors help preserve a low level of market concentration, which stimulates competition. Meanwhile, a number of companies have introduced open source alternatives. These alternatives have further increased competitive pressures within the market. Major vendors in the FSM market include Oracle, SAP AG and Infor.
Buyers have also benefited from falling operational costs within the market. Field service management software vendors purchase the rights to a variety of analytics and pattern recognition software to provide their buyers with more functionality. “The cost to purchase the rights to other companies' software has consistently fallen in concert with falling software publishing costs during the past three years,” says Krohn. Thus, software price decline has driven down suppliers' operational costs, allowing them to lower their prices while still maintaining high profitability.
Furthermore, low supply chain risk has also provided strong benefits to buyers. Vendors of FSM software rely primarily on inputs related to computer and software technologies and services and intellectual property rights. These inputs are distributed through markets containing a plethora of viable vendors. The abundance of vendors within these markets create strong competition that curbs price inflation while affording FSM suppliers a wealth of alternative vendors to choose from if their provider exits the market. In turn, low supply chain risk helps mitigate supply chain disruptions and price volatility within the market. As such, buyers can effectively budget for the costs and time required for purchasing FSM software. For more information, visit IBISWorld’s Field Service Management Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of field service management (FSM) software. FSM oversees the scheduling, optimizing and dispatching of staff and information outside of the company's office while the employees are working in the field with customers. FSM software assists in the management of field service, scheduling employees, tracking the progress of assignments, setting up billing and reporting and tracking service parts and inventory. This report excludes all other forms of software and field service management 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
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