Despite the steady demand, prices have slightly decreased as competitive pressure has risen and suppliers have increasingly used more flexible, web-based software delivery models
Los Angeles, CA (PRWEB) February 12, 2015
Expense management software has a buyer power score of 4.3 out of 5, reflecting strong negotiating power for buyers. According to IBISWorld analyst Dale Schmidt, demand for expense management software has steadily increased as more buyers have sought ways to automate and simplify the management of their internal expenses. Nevertheless, prices for expense management software have not changed significantly in the three years to 2014, and they are expected to remain stable in the three years to 2017. Demand for expense management software has been supported by rising corporate profit, increasing investment in technology and a greater number of US businesses, but high competition among vendors has reduced overall price growth.
As a greater number of vendors have entered the market in the three years to 2014, the increasing fragmentation of the market has boosted negotiating leverage for buyers. Market fragmentation has, however, been somewhat limited by merger and acquisition activity among the top expense management software providers, which have acquired other companies to bolster their offerings and competitive standing, continues Schmidt. Top providers includes Insperity Inc., SAP SE and Infor. Prices have also been influenced by the strong profit margins vendors generate through software sales. Vendor profitability has been increasing as suppliers have gained greater economies of scale, the market has continued to shift toward web-based deployment and vendors have increased their focus on providing additional value-added services. Rising profitability has opened up more negotiating opportunities for buyers to lower the price of suppliers' expense management software, particularly when purchasing bundled service packages.
There are a number of other factors that contribute to strong buyer power. There is a moderate number of viable substitutes for expense management software, and buyers do not face significant risk from the market's supply chain or pace of regulatory change. In addition, buyers benefit from low price volatility, which gives them greater flexibility when deciding to switch vendors or enter into long-term contracts. For more information, visit IBISWorld’s Expense Management Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of expense management software. Expense management software helps businesses simplify the process of managing expenses and tracking spending trends. Expense management software can increase the transparency of an organization’s spending by automating payment requests, expense reports, timesheets and travel expenses. By using this software, businesses can also raise their compliance with corporate spending policies and set more accurate budgets for the future. This report does not cover accounting software or ERP software.
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.