Los Angeles, CA (PRWEB) November 07, 2014

Outplacement services have a buyer power score of 4.7 out of 5, which reflects very strong negotiating power for buyers. Demand has declined during the past three years as companies recover from the recent recession. Outplacement services are countercyclical, so demand increases during times of economic decline when many companies conduct layoffs to avoid financial default. “Although service prices spiked during the recession, prices have since fallen due to recovering corporate profit levels, fewer business bankruptcies and increased hiring efforts,” says IBISWorld procurement analyst Michelle Hovanetz. “Prices for outplacement services are expected to continue dropping through 2017 as the economy further stabilizes and businesses start to expand their operations, benefiting buyers.”

Outplacement services have a low level of price volatility, which helps buyers to better budget for purchases. Price trends are steady largely thanks to a stable supply chain and favorable input cost trends. With relatively few inputs needed to provide outplacement services, buyers face little risk of discontinuity of service due to supply chain problems. “A shift toward increased online service offerings has contributed to falling supplier costs, which have boosted vendor financial stability and improved supplier profit margins,” adds Hovanetz. “In turn, buyers have improved leverage in negotiations.”

The competitive environment is moderately concentrated, but new suppliers continue to enter the market, which gives buyers more vendor options. Large multiline firms have started to incorporate outplacement services as a means to bolster their HR consulting and risk-management portfolios. Market leaders include Adecco and ManpowerGroup, which carry the largest outplacement brands in Right Management and Lee Hecht Harrison, respectively. Furthermore, outplacement vendors have increasingly shifted toward more flexible, cost-efficient virtual platforms, which have allowed a greater number of small suppliers to enter the market, boosting competition. The high number of substitutes available to buyers has also increased competition. Buyers can opt to provide many of the services offered by outplacement firms internally or, alternatively, can provide a different type of severance package. For more information, visit IBISWorld’s Outplacement Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of outplacement services, which are designed to help laid-off employees find new jobs following a downsizing event or other related business change. Suppliers offer career counselors and job search experts to assist displaced employees with a variety of services, including interview preparation, resume and cover letter writing, business seminars and resume distribution. The former employer pays for outplacement services as a way to minimize their financial liabilities, avoid potential lawsuits, protect their market reputation and help retain unaffected employees. This report does not cover compensation and benefits planning services or risk-management consulting services.

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

Regulation

Quality Control

Supply Chain & Vendors

Supply Chain Dynamics

Supply Chain Risk

Imports

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 http://www.ibisworld.com or call 1-800-330-3772.







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