Stable costs and low market concentration have moderated price increases
Los Angeles, CA (PRWEB) March 23, 2015
Buyers of helpdesk and call center software have a power score of 3.4 out of 5. This score reflects mixed pricing trends and moderate market risks. An unfavorable market structure reduces buyer power, but prices have remained stable in the three years to 2014. “Although demand has increased steadily for helpdesk and call center software, stable input costs have allowed suppliers to keep their production costs low and maintain steady profit margins without raising prices significantly,” says IBISWorld research analyst Dale Schmidt. Moreover, helpdesk and call center software is still in the early stage of its product life cycle, and providers keep prices low to encourage buyers to adopt the product.
Buyers face moderate market risks. Suppliers require continuous access to telecommunication and network services because they provide their software using the internet. As a result, supplier costs rely on the prices the few telecommunications giants that dominate that market charge. “A lack of financial stability also compounds market risks,” Schmidt says. “Many suppliers are small to midsize companies with very low or even negative profit margins.” Buyers could find their access to software disrupted in the event that a supplier goes out of business. Current vendors include Salesforce, Zendesk and inContact Inc. Buyers benefit from the low volatility of price drivers, though, which indicates that buyers face very little risk in terms of severe price fluctuations. Low price volatility is beneficial for buyers because it allows them to forecast prices and manage budgets better.
There are very few substitutes for helpdesk and call center software, and switching costs are high. As a result, buyers are typically locked in with the vendor they initially choose. As such, buyers should take their time to evaluate their providers and ensure that their chosen software provides all the desired features and functionality before committing. For more information, visit IBISWorld’s Helpdesk and Call Center Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of helpdesk and call center software. Helpdesk and call center software manages inbound and outbound calls with customers and is typically used to support sales and customer relation processes. This report focuses on software-as-a-service (SaaS), or “on-demand” helpdesk and calls center software, rather than software-as-a-product (SaaP), or "on-premise" helpdesk and call center software. This report excludes customer relationship management software as well as hardware used in call centers.
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.