IT Asset Recovery Services Procurement Category Market Research Report from IBISWorld has Been Updated
Los Angeles, CA (PRWEB) December 01, 2014 -- IT asset recovery services have a buyer power score of 3.3 out of 5. This score reflects moderate negotiating strength for buyers. Demand for IT asset recovery services has remained strong during the past three years because companies across nearly all sectors have sought ways to retrieve value from idle or outdated technological systems.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 2017,” according to IBISWorld business research analyst Scott Winters. 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 market is highly fragmented and very competitive. 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 of bolstering their portfolio of offerings. Many of the largest vendors in this market, such as Hewlett-Packard and IBM, have continued to expand their international operations to reach new markets during this period. Suppliers in this market can obtain moderate to high profit margins for their 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, providing buyers with few substitutes and suppliers with more negotiation power. “That being said, 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,” Winters says. 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.
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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 technological goods. Services may also cover the liquidation of excess IT inventory. Disposing of obsolete or underutilized assets can reduce internal costs for buyers and help them recoup some of their original financial investment. This report focuses primarily on the consulting aspect of IT recovery planning, as opposed to buyback programs in which a supplier simply purchases a buyer’s assets at a fair market value. This report does not cover IT disaster recovery services.
- Executive Summary
- Pricing Environment
-- Price Fundamentals
-- Benchmark Price
-- Pricing Model
-- Price Drivers
-- Recent Price Trend
-- Price Forecast
- Product Characteristics
-- Product Life Cycle
-- Total Cost of Ownership
-- Product Specialization
-- Substitute Goods
-- Regulation
-- Quality Control
- Supply Chain & Vendors
-- Supply Chain Dynamics
-- Supply Chain Risk
-- Imports
-- Competitive Environment
-- Market Share Concentration
-- Market Profitability
-- Switching Costs
- Purchasing Process
-- Buying Basics
-- Buying Lead Time
-- Selection Process
-- Key RFP Elements
- Negotiation Questions
- Buyer Power Factors
- Key Statistics
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.
Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]
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