Prices are expected to continue rising through 2017 as suppliers' wage costs increase both domestically and abroad
Los Angeles, California (PRWEB) January 24, 2015
Telemarketing services have a buyer power score of 3.1 out of 5, signifying relatively neutral market conditions for buyers. According to IBISWorld market research analyst, Michelle Hovanetz, "Buyers benefit from a large number of suppliers and low market share concentration." There is little specialization among service providers and switching costs are low, also helping to boost buyer power. Alternatively, recent and forecast rising prices negatively impact buyer power, hampering buyers' ability to negotiate lower prices for telemarketing services.
Buyers must contend with the rising price of telemarketing services. Recent price increases have been moderate, stemming from rising demand. "As the number of businesses and corporate profit levels have grown in the years following the recession, more businesses have been able to afford telemarketing services, leading to price growth," says Hovanetz. During the three years to 2017, prices are expected to continue rising largely due to increased wage costs. Wages in countries like India and the Philippines are rising as their respective economies develop. Simultaneously, buyers have expressed a desire for domestic operators. The result is a growing number of operators within the United States and higher service prices because of the higher wages domestic suppliers require. Price growth negatively impacts buyers by limiting the likelihood of negotiation on the part of the supplier. Major vendors in the market include Arvato AG, Convergys Corporation and West Corporation.
There is a low level of market share concentration among telemarketing suppliers. Low concentration boosts competition, helping to moderate price growth. Additionally, switching costs for buyers are low, as long as they protect themselves through a service-level agreement that ensures satisfactory performance on the part of the supplier. Little specialization among service providers allows most buyers to switch suppliers without concern for special capabilities or drastic differences in service, also boosting competition, and, therefore, buyer power. For more information, visit IBISWorld’s Telemarketing Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of telemarketing services. Providers of telemarketing services answer telephone calls and relay messages to clients. Additionally, telemarketers use telephone or e-mail to promote client products or services, take orders, solicit contributions or provide information on behalf of clients. Services are typically provided on a contract or fee basis. Telemarketers never own the product or provide the service they are representing. This report does not include fundraising campaigns or the gathering of marketing and public opinion data.
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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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.