Prices are expected to increase slowly as more businesses invest in computers and software.
Los Angeles, CA (PRWEB) October 14, 2014
Prices are projected to continue to increase during the next three years as more businesses demand information retrieval systems to handle larger amounts of data, which will cause vendors to raise prices due to higher demand. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Information Retrieval Systems in its growing collection of procurement category market research reports.
Information retrieval systems have a buyer power score of 3.7 out of 5.0. The score reflects a beneficial pricing trend for buyers, with slow and steady price growth over the past decade. “Increased private investment in computers and software has increased demand for information retrieval systems as more businesses integrate technology into their operations,” according to IBISWorld research analyst Andrew Krabeepetcharat. “At the same time, the percentage of services conducted online has also increased demand for information retrieval systems as a means to access databases stored online.” Increased technological integration and higher demand for information retrieval systems has prompted suppliers to raise prices in response to growth in demand.
Despite price growth and a high market share concentration, competition among larger suppliers, such as Cisco Systems, Hewlett-Packard, International Business Machines Corp and Oracle Corp., has mitigated price growth over the past three years. Additionally, price growth has experienced a low level of volatility, benefiting buyers because they are not likely to experience unexpected price hikes. Buyers, therefore, do not need to purchase information retrieval systems immediately due to the slow growth trend in increasing prices and should carefully choose the best supplier and product. Also, buyers benefit from purchasing from large suppliers because they are multinational companies with financial stability and a diversified portfolio of products, says Krabeepetcharat. “Buyers can easily purchase a long-term or unlimited license without substantial risk of the supplier facing bankruptcy. These suppliers also face a steady supply chain that reduces input cost volatility, creating a more stable purchasing environment for buyers.”
Buyer negotiating power is limited by the market's lack of substitutes. Information retrieval systems are a crucial function required by any business that needs to handle search and queries in a large database. Hiring an in-house software developer can cost a buyer much more than simply purchasing a license to use existing software. Additionally, the product is highly specialized because suppliers generally have to create highly customized solutions for the buyer, requiring more time and resources to implement the information retrieval system. For more information, visit IBISWorld’s Information Retrieval Systems procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of information retrieval systems. Information retrieval systems assist buyers with obtaining information resources relevant to the desired search and provide access to books, journals and other documents in educational institutions. This report does not include web search engines.
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.