Financial Analysis Software Procurement Category Market Research Report from IBISWorld has Been Updated

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Although high market share concentration has limited the extent of competition in the financial analysis software market, buyers have benefited from high supplier profitability, which has given providers more leeway to come down on price during negotiations. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Financial Analysis Software in its growing collection of procurement category market research reports.

IBISWorld procurement market research
Rising demand will continue to drive price growth through 2018; however, falling market concentration and declining operational costs will slow price growth

Financial analysis software has a buyer power score of 3.4 out of 5, reflecting mostly positive negotiating conditions for buyers. According to IBISWorld market research analyst, Daniel Krohn, "Buyers benefit, in particular, from high supplier profitability and falling operational costs within the market." Once suppliers overcome their high upfront research and development (R&D) costs, there are few other costs to account for because there are minimal equipment requirements for production and the software can be distributed inexpensively online. These factors boost profitability, which gives suppliers more price flexibility and helps them absorb input cost spikes. Buyers benefit from these qualities because they make suppliers more susceptible to negotiation and reduce the likelihood that suppliers will abruptly raise their prices. Declining wage costs, spurred by rising process automation, have further reduced operational costs for suppliers. Declining costs allow suppliers to grow their profit without raising their prices, thereby reducing their incentive to charge buyers more. Major vendors in the market include SAP, SAS and Oracle.

Buyers also benefit from low market risk. "Financial analysis software publishers rely primarily on inputs from third-party software vendors and highly skilled labor, both of which have very low volatility," says Krohn. Moreover, suppliers cater to a wide variety of buyers with low risk of discontinuity, ensuring a steady stream of demand. Faced with stable input costs and dependable demand, suppliers can price their software consistently, which helps buyers time their procurement to get the best deal.

However, there is a variety of factors that hurt buyer power. Aggressive demand growth has made it more difficult for buyers to negotiate with suppliers. A recovering economy has driven up the demand for financial analysis software, which has outpaced supply gains in the market. In turn, suppliers have been less inclined to compete for buyers' business. High market concentration exacerbates this detriment to buyer power because it has made top-tier suppliers especially impervious to negotiations. Even so, low price volatility will make it easy for buyers to budget their expenses and strategically time procurement. For more information, visit IBISWorld’s Financial Analysis Software procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of financial analysis software. Financial analysis software uses historical financial data to assess the current and future financial health of a company. Financial analysis software can also incorporate potential investments into its financial projections to assess their feasibility and forecast profitability. This software speeds up the process of financial analysis and provides deeper capabilities than spreadsheets. Although this software is often used in conjunction with accounting, enterprise resource planning (ERP) and customer relationship management (CRM) software, these programs are excluded from the report.

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
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
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 or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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