Financial Analysis Software Procurement Category Market Research Report from IBISWorld has Been Updated

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Financial analysis software has a buyer power score of 3.5 out of 5, reflecting positive negotiating conditions for buyers due to high profitability and falling operational costs within the market. 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 Financial Analysis Software in its growing collection of procurement category market research reports.

Financial analysis software has a buyer power score of 3.5 out of 5, reflecting positive negotiating conditions for buyers. In particular, buyers benefit from high profitability and falling operational costs within the market. “Once suppliers overcome their high upfront research and development (R&D) costs, there are few other costs to account for because there are minimal equipment requirements for production and software can be distributed inexpensively online,” according to IBISWorld business research analyst Daniel Krohn. These factors boost profitability, which gives suppliers more price flexibility and helps them absorb input cost spikes. Furthermore, barriers to entry have been lowered and small vendors have rapidly gained ground in the financial analysis software market, eroding the market shares of business enterprise software giants, such as SAP, Oracle and SAS. Buyers benefit from these qualities because they make suppliers more susceptible to negotiation and reduce the likelihood that suppliers will abruptly raise their prices. Falling prices from third-party software vendors and declining wage costs, spurred by rising process automation, are further reducing operational costs for suppliers. Declining costs allow suppliers to grow their profit without raising their prices, thereby reducing their incentive to charge buyers more. Price growth is, consequently, kept in check, which helps buyer power.

Buyers also benefit from low market risk. Financial analysis software publishers rely primarily on inputs from third-party software vendors and highly skilled labor, both of which have very low volatility. Moreover, suppliers cater to a wide variety of buyers with minimal risk of discontinuity, ensuring vendors a dependable stream of demand. Faced with stable input costs and dependable demand, suppliers can price consistently, which helps buyers effectively time their procurement to get the best deal.

There are, however, a variety of factors that hurt buyer power. “In particular, aggressive demand growth has made it more difficult for buyers to negotiate with suppliers,” Krohn says. A recovering economy has driven up the demand for financial analysis software, which has outpaced supply gains in the market. In turn, suppliers have been less inclined to compete for buyers' business. This detriment to buyer power is exacerbated by high market concentration, which has made top-tier suppliers especially impervious to negotiations. For more information, visit IBISWorld’s Financial Analysis Software procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of financial analysis software. Financial analysis software uses historical financial data to assess the current and future financial health of a company. Financial analysis software can also incorporate potential investments into its financial projections to assess their feasibility and forecast profitability. This software speeds up the process of financial analysis and provides deeper capabilities than spreadsheets. Although this software is often used in conjunction with accounting, enterprise resource planning (ERP) and customer relationship management (CRM) software, these programs are excluded from the report.

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
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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