The prevelance of open-source offerings will continue to keep price growth for paid options low
Los Angeles, CA (PRWEB) March 11, 2015
The telecom expense management software market exhibits a buyer power score of 3.3, indicating a moderate level of buyer power in negotiations. The highly competitive market allows buyers the leverage to play vendors off one another, but the product's steadily rising price limits that power.
The market for telecom expense management software is highly fragmented, with many small vendors. Those vendors do not require a large staff for operations, averaging fewer than 50 employees. And because vendors can be competitive with such a small workforce, the number of vendors is steadily increasing. As a result, “no vendor is able to gain a significant enough market share to reduce the competition it faces,” says IBISWorld research analyst Dale Schmidt. Current vendors include IBM, Dimension Data, NetPlus and Asentinel.
Another avenue of competition comes from telecom expense management service providers, which provide roughly the same service that the software does. Over the next three years, competition from outside the market will increase as open-source telecom expense management software makes further inroads, a trend that has already been proliferating.
While competition among vendors is fierce, the average price of the software is still growing due to surging demand. Growing corporate profit is causing vendors to increase the amount they invest in support software and the number and extent of their telecom plans. “At the same time, internet-enabled mobile devices like smartphones and tablet computers have exploded in popularity, leading to much larger and more complex telecom plans,” says Schmidt. These forces have combined to cause demand for telecom expense management software to increase significantly, driving up the price. The rising price has hurt buyer power by undermining the negotiating advantage buyers would otherwise receive from the high level of competition. For more information, visit IBISWorld’s telecom 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 telecom expense management software, which allows businesses to simplify the process of managing telecom-related expenses and tracking related spending trends. By using this software, businesses can increase their compliance with corporate spending policies and set more accurate budgets for forecast periods. This report does not include open-source telecom expense management 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.