Buyer’s Guide: Mobile app development services can be risky

Buyers of mobile app development services will face a highly fragmented market with lots of small players that could default, according to IBISWorld. Download this free procurement report, which analyzes the vendors, pricing trends and ways to negotiate the best deal.

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About 200,000 firms offer mobile app development services in the U.S. – and 96 percent of them are mid-sized or small firms. Many have four employees or fewer. Consequently, buyers should keep an eye on the vendor’s financial health, according to procurement analysts at IBISWorld, Inc. 

[Related: --> Strategy first: How to do mobile dev right]

“The mobile app development market is highly fragmented … and no single vendor holds a significant share of the market,” an IBISWorld report says. Many vendors – especially new entrants – “face a high financial risk due to the high level of competition in the market,” the report says.

The competition keeps prices from rising a lot, the analysts say, but buyers should make sure they select a vendor that has a track record of building mobile apps for the enterprise, and top-notch talent.

The 25-page IBISWorld report also provides:

  • Pricing trends
  • A scorecard for making purchase decisions
  • Analysis of the total cost of ownership (TCO)
  • Key elements to put in the RFP
  • Negotiation questions

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