Background Check Services Market Analysis
Background check services category spend growth, background check services price trends, background check services supply market analysis and regional spend segmentation insights are offered in this report.
Spend growth of this market has the potential to touch a value of over USD 800 million with spend momentum accelerate at a CAGR of more than 4% between 2018-2023. In the sports industry, drug check tests are the mandatory during the enrollment process of players. Buyers from this industry prefer to outsource these tests to be conducted by experts. Such a preference will contribute to spend growth in the background check services market during the forecast period. To keep the workplace free from drug abuse, employers across the globe have mandated the maintenance of thorough drug test records for their employees. This will increase scopes of drug testing service providers and drive investments in the background check services market.
Top Spending Regions in the Background Check Services Market
In terms of spend growth, North will dominate the background check services market and will account for a substantial share in spend growth in the global market.
North America
The dominance of this region is substantiated by the concentration of the global background check service providers who offer online platforms that assist buyers in conducting background checks of employees. In the US, background check services are in high demand from the healthcare industry. The professional credibility of the physicians and nurses are determined by conducting an employment background check on them. Prevalence of the DOT regulations mandates drug testing on potential hires in the transportation industry. This will propel the overall demand for background check services in the US during the forecast period.
Europe
In Europe, the increase in the demand for financial check services from government agencies such as the European Commission will drive spend growth in the background check services market in the region. The growth of temporary/contingent workers is expected to drive the demand growth in the background check services market to ensure workplace safety.
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What are the Key Price Trends in this Market?
- Background check service providers are increasing investments in technologies such as AI and ML to streamline their operations and to meet buyers’ demands. According to the background check services price trends, this will drive the CAPEX of the service providers, which is expected to increase procurement costs for buyers.
- The growth in employee salaries and search fee imposed by governments on service providers is expected to increase screening costs, which will have a direct impact on the cost structure of background check service providers.
- However, the growing global demand for background check services is expected to motivate new players to enter the market. This is expected to intensify competition in the market, which could stabilize category prices.
Download the free sample of this report to know what the key background check services procurement best practices that you must adopt to address price dynamism in this market.
Insights Offered in this Background Check Services Market Report
- Global and regional spend potential for the background check services market for the period of 2018-2023
- Supplier relationship management practices in the background check services market
- Supplier margins and selection criteria in the background check services market
- Top background check service providers and their cost structures
- Top background check service providers in the US and their cost structures
- Background check services market spend analysis in the US
- Background check services price trends, and forecasts
- Cost drivers influencing the background check services prices
Insights into Background Check Services Supply Market
- North America has the highest supply influence on the category due to the presence of a large number of major background check service providers. They offer online platforms that use technologies such as AI and ML to automate the overall background check process.
- Buyers will exercise better bargaining power owing to the low switching cost of buyers in the background checks services market. This will enable buyers to negotiate with service providers in a comprehensive manner.
- It is advised that buyers conducting employment check services across geographies engage with global service providers. These service providers assist in verifying candidate reference check anywhere across the globe. Moreover, the increase in immigration activities to pursue employment opportunities has increased buyers’ dependence on global service providers for conducting reference checks for such candidates that have immigrated to a new country. As a result, the margins of global background service providers are expected to increase during the forecast period.
Insights into Some of the Leading Background Check Services Service Providers
The supply market dynamics hint at a substantial hike in suppliers’ OPEX which will drive buyer’s procurement spend. Keeping such dynamics in mind, strategic selection of suppliers and maintaining an effective supplier relationship management are observed to facilitate buyers with optimized procurement expenditure and better category management in the background check services market. This background check services market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top background check service providers. The top background check services suppliers highlighted in this report include:
- KPMG International Cooperative
- Grant Thornton International Ltd (GTIL)
- ADP LLC
- Insperity Inc.
- First Advantage
- HireRight Group
Criteria to select suppliers in this dynamic background check services market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
