Over the next three years, domestic suppliers will increasingly have to compete with overseas companies that offer services for lower rates, limiting price growth
Los Angeles, CA (PRWEB) November 11, 2014
Technical writing services have a buyer power score of 4.0 out of 5. This score reflects positive market conditions that increase buyer negotiation power. IBISWorld market research analyst, Cameron Roark, says, "During the past three years, prices have grown at a slow rate, and price growth is forecast to remain slow over next three years."
Slow price growth is largely the result of market competition. "The technical writing services market is highly fragmented, and the majority of suppliers are small firms and nonemployers," says Roark. The low level of market share concentration encourages price-based competition among suppliers and, ergo, a slower rate of growth in service prices in general. Major vendors in the market include DK Consulting LLC, Pinnacle Solutions Inc. and Axelerate. Competition with overseas companies that offer lower rates has also helped to moderate price growth, as has the increasing trend of offshoring.
Buyers also benefit from a low level of volatility in prices. Demand for technical writing services is fairly consistent, and suppliers serve clients in multiple sectors. The most significant cost to suppliers is wages. Suppliers do not depend on other critical inputs that could fluctuate in price or quality. Although average wages are high, the market does not experience labor shortages and wage growth is moderate. There is, consequently, little risk in the supply chain for technical writing services, and prices are unlikely to suddenly increase.
While purchasing power is high overall, there are a few factors that somewhat reduce it. There are a limited number of substitutes available for technical writing services. Technical writers must make complicated information easy to understand for non-technical readers; the work requires effective communication skills and some technical knowledge. This level of specialization is the reason that technical writers have higher wages than other writers and that buyers must select suppliers that are well qualified. Businesses can opt to do their own technical writing in house, but programmers, software developers and other technical workers often do not have the writing experience necessary to create high-quality material that consumers can easily understand. Buyer power is limited by the lack of alternatives in the technical writing services market. For more information, visit IBISWorld’s Technical Writing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of technical writing services. Technical writing is used in technical, occupational and specialized fields such as medicine, finance and environmental sciences. Technical writing is used to translate complex information into coherent language that provides practical knowledge pertinent to the topic of focus. Specific end products include instruction manuals, academic or scientific articles, business proposals and web content. Technical writing does not include creative writing or other services such as resume writing, court reporting and transcription.
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.