Level 3 - Activities involving problem solving and decision making

Slightly higher up the value chain are activities that involve problem solving and decision making, such as developing solutions for improving processes or streamlining systems. 

Potential Functional areas - HR (payment of salary, recruitments), support business processors, Accounting (checking of receipts, billing)

The threat of new entrants 

Since this segment demands employees, who are capable of problem solving and decision making, its necessary to have employees with sound academic qualification and most of the unemployed graduates could be the major driving force in this segment in Sri Lanka; As this segment required relatively educated employees, which makes barrier for the low literate countries. Further quality of the service, that could be obtain from Sri Lanka makes, switching cost relatively high value when compared to most of other regional countries. After analyzing above facts in detail, its possible to come a conclusion that there is moderate threat of new entrants. 

The threat of substitutes products and/ or services

 As this segment heavily depends on analytical skills of the employees and dealing with non routing tasks, it’s though ask to replace this by process automation.  

The bargaining power of suppliers

 In Sri Lanka, there are only few sources by which produce people with sound academic qualification and the amount output is relatively small number when compared to countries. Further, the nature of activities involve with this segment are pretty hard to replace by substitute, the bargaining power of human capital suppliers increases by several factor. 

When comes to bargaining power of infrastructure providers, such as high bandwidth data communication channel providers are in limited numbers and have to depend on their services. Due to that reason bargaining power of telecommunication service providers tend to be in high degree when compared to regional countries.  

 

The bargaining power of buyers

In Sri Lankan context, there are relatively huge pool of unemployed graduates available out there and other are seeking jobs at a higher salaries than the salaries they obtain in present. Therefore there is moderate high demand for the job in this segment as new opportunities, would fulfill their almost each and every requirements