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Project management software prices are forecast to increase slightly in the three years to 2016 due to rising demand; however, growth in price will likely be stable, which will help buyers budget accurately. To help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Project Management Software to its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) February 24, 2014
Project management software has a buyer power score of 3.9 out of 5. The higher the score the better the negotiating conditions for buyers. The score for this market reflects stable prices and low market risks. However, the score is restrained by moderate market share concentration and high switching costs. According to IBISWorld procurement analyst Andrew Yang, recent pricing trends have been favorable for buyers in the three years to 2013. Price increases are mitigated by several factors. There are many other software applications that act as substitutes for project management software. Suppliers cannot raise prices too high or else buyers will use these applications instead. Also project management software is still in the growth stage of the life cycle. Suppliers are inclined to keep prices low to encourage buyers to try out their product. Due to increased demand, prices will increase slightly in the three years to 2016 but still remain relatively stable. Stable prices are beneficial for buyers because they allow buyers to better plan their budgets and manage their costs. They can take their time in evaluating vendors as they do not have to worry about rising prices.
Buyers also benefit from very low market risks. Project management software vendors are not dependent on any inputs that may result in supply disruptions or price shocks. Average vendor financial benchmarks are fairly high, meaning that there is low risk of bankruptcy. Low market risks are beneficial for buyers as they ensure that project management vendors can provide a steady access to project management software, says Yang.
Buyer negotiating power is lowered by moderate market share concentration and high switching costs. Project management software is relatively new and buyers tend to purchase project management software from software corporations with established brand names. High market share concentration is negative for buyers as vendors will have increased leverage in setting prices. As a result, these software corporations have the highest profit margins in the market. Buyers of project management software also face high switching costs, meaning that buyers cannot easily change to other vendors and may end up locked in with a supplier. The top four vendors in the market are Oracle, Microsoft Corporation, CA Technologies and Planview Inc.
For more information, visit IBISWorlds Project Management Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of project management software or portfolio project management software. Project management software is designed to help track and manage projects from conception to execution. Project management software comes with many tools and features used to manage budgets, assign tasks, allocate resources, and allow collaboration and documentation. This report focuses on Software as a Service (SaaS) project management software where the software is accessed through the internet and cloud computing infrastructure.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
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, IBISWorlds 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.
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