New Data for Contract Management Software Procurement Category Market Research Report from IBISWorld
Los Angeles, CA (PRWEB) March 07, 2015 -- Contract management software has a buyer power score of 4.2 out of 5. This score indicates that buyers are in a favorable position to negotiate price discounts or package deals from providers. Prices for contract management software have been stable during the past three years, and they are anticipated to remain stable in the three years to 2017. “Due to growing business activity and an increasing utilization of software for business processes, demand for contract management software has grown steadily,” according to IBISWorld business research analyst Dale Schmidt. Despite higher demand, competition and the rising prevalence of cloud computing technology in the market have moderated price increases. Competition has increased as more providers have entered the market, putting pressure on providers to lower prices. California is home to Silicon Valley, a highly concentrated area of technology companies and many of the top computer science universities in the world. As a result, many contract management software providers, such as SAP, IBM and Sciquest, have their headquarters in California. The use of cloud computing technology, meanwhile, has lowered the cost of delivery, and suppliers have passed on these cost savings to buyers in the form of lower prices.
Buyers also benefit from low market risk. Contract management software providers are not dependent on any critical inputs that may interrupt the supply chain or create significant price fluctuations. As a result, buyers can expect reliable and steady access to contract management software to manage their contracts. Also, most providers have seen healthy revenue growth in the past three years, although buyers should be aware that smaller providers might not be as financially stable as larger and more established software publishers.
Buyers also benefit from the high availability of substitutes. “Buyers can use document management software or manual, paper-based systems to manage their contracts instead of this market's software. In addition, buyers can seek price discounts by comparing prices for these substitutes with the price of contract management software. Furthermore, market share concentration and product specialization are low, which benefits buyers because it indicates that there are a large number of providers that can provide contract management software,” Schmidt says. That said, switching costs are medium, creating some risk that buyers may be locked in with their provider. As such, buyers should take their time to evaluate and select the right supplier. For more information, visit IBISWorld’s Contract 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 contract management software. This software is used to author, store, organize and analyze a buyer's various contracts to help them structure better deals, remove revenue recognition delays, consolidate contract value, avoid contract penalties and more. This report excludes procurement software and other sourcing software. Contract management software may also be referred to as contract life cycle management software.
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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