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The weak economic recovery has led to weak growth in the price of management consulting, as businesses and government agencies have struggled to afford additional consulting services; as the economy strengthens and government spending returns to growth, increased demand for consulting services will cause the rate of price growth to accelerate. 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 Management Consulting Services in its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) June 24, 2014
The market for management consulting services exhibits a buyer power score of 3.2, representing an above-average level of buyer power. According to IBISWorld analyst Dale Schmidt, the main facet underpinning the high level of buyer power is the fragmented yet secure nature of the market.
Buyers can choose from over 100,000 suppliers, which helps limit price increases by giving the average buyer many options to choose from, continues Schmidt. In addition, consultancies in general are low risk endeavors. Their costs are mainly the salaries of their employees. As such, there is no risk supply of shocks or service interruptions. And although wage costs are increasing, the rate of increase is marginal from year-to-year and fails to have a significant impact on prices. Major suppliers of management consulting services include Accenture PLC, Bain & Company and Booz & Company Inc.
However, certain aspects of the market do diminish buyer power, namely the rising price and the highly specialized nature of the service. The price of management consulting is in the middle of a long period of slow and steady growth. This trend diminishes buyer power because it pressures buyers into making a purchasing decision because prices will continue to rise. In addition, each management consulting solution is highly specialized in nature because the supplier customizes their service to the buyer's needs. This factor makes comparisons across vendors difficult, because different vendors will offer up significantly different solutions with benefits that can be hard to measure. For more information, visit IBISWorlds Management Consulting Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of management consulting services. Management consultants advise businesses, nonprofits and public-sector agencies in the following areas: organizational design, human resources, corporate strategy, information technology strategy, marketing and sales, finances and logistics. This report is not intended for buyers looking to procure consulting services in any one of these areas individually, but rather for buyers looking to procure consulting services encompassing most or all of these areas.
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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