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Contract management software prices will rise slightly in the three years to 2017 due to increased demand; however, price increases will continue to be moderated due to the development of cloud-computing technology and increased competition. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Contract Management Software to its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) July 08, 2014
Contract management software has a buyer power score of 4.2 out of 5. This score indicates that buyers are in a favorable pricing environment, with the ability to negotiate price discounts or package deals from providers. Prices have recently been stable for contract management software buyers, and they are anticipated to remain stable in the three years to 2017. With an improving economy and higher IT investments, demand for contract management software has grown steadily, says IBISWorld research analyst Andrew Yang. Despite higher demand, competition in the market and the use of cloud computing technology moderate price increases. The use of cloud computing technology 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 supply or create price fluctuations. As a result, buyers can expect reliable and steady access to contract management software to manage their contracts, says Yang. Most providers have seen healthy revenue growth; however, buyers should be aware that smaller providers might not be as financially stable as larger and more established software publishers. Current major vendors include IBM Corp., SAG, GEP and SciQuest Inc.
The market structure is also favorable for buyers. The availability of substitutes is high. Buyers can also use document management software or simply use manual paper-based systems to manage their contracts. Buyers can seek price discounts by comparing prices for these substitutes with the price of contract management software. Further, market share concentration and product specialization are also low, which benefits buyers because it indicates a large number of providers that can provide contract management software. Nonetheless, switching costs are medium, creating risk that buyers may be locked in with their provider. As such, buyers should still take their time to evaluate and select the right supplier. For more information, visit IBISWorlds 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 the buyer's various contracts to help them structure better deals, remove revenue recognition delays, consolidate the 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.
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, 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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