Consulting rates will continue to rise with growing business and online credit card activity
Los Angeles, CA (PRWEB) February 18, 2015
PCI compliance consulting has a buyer power score of 3.6 out of 5, indicating a moderate level of negotiation ability. Low market share concentration and minimal supply chain risks boost buyer power, while a moderate availability of substitutes, rising prices and moderate switching costs restrain buyers’ leverage, according to market research firm IBISWorld. The PCI Security Council requires PCI compliance for all businesses that use payment card transactions in their operations. As such, businesses cannot opt out of completing an annual PCI audit, thereby limiting substitute options. Fortunately, buyers can opt for a PCI-compliant secure payment service in lieu of a PCI compliance consultant.
Additionally, prices have been rising and are expected to continue increasing in line with growing demand for PCI compliance consulting, according to IBISWorld research. As the number of businesses, access to credit and the percentage of services conducted online continue to rise as the economy improves, the necessity for PCI compliance consulting will increase, applying upward pressure on prices. Although price competition benefits buyers, switching to a lower-cost service may not save the buyer money because of the time and unforeseen expenses involved in initiating a PCI compliance consulting contract. As a result, buyers have more difficulty employing a competitive tactic with potential suppliers if they are already in a contract. Buyers are, thus, encouraged to thoroughly vet their needs and serve bids before committing to an agreement.
Fortunately for buyers, the PCI compliance consulting market is fragmented. Low market share concentration aids price competition because no single supplier commands control of the market. Current vendors include Dell Inc., IBM Corp., PricewaterhouseCoopers and Trustwave Holdings. Furthermore, low supply chain risk reduces the possibility of sudden price hikes. Suppliers can easily anticipate future costs and are more willing to offer discounts for guaranteed future business. Buyers are, therefore, encouraged to negotiate larger and longer contracts to lock in lower prices or discounts. For more information, visit IBISWorld’s PCI Compliance Consulting procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of payment card industry (PCI) compliance consulting services. PCI compliance consulting services assist buyers in the payment card industry with assessing their database infrastructure for compliance with Payment Card Industry Data Security Standards (PCI DSS). Vendors perform a thorough audit to review buyers' database management practices and provide those that do not adhere to regulations with a detailed service plan for restructuring their databases to ensure compliance. This report excludes database management services.
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.