Friday, December 5, 2008

Level 5-Specialized services requiring domain knowledge and skills

Potential Functional Areas- KPO, LPO (integration and management services, financial services, research and analytics, computer-aided simulation and engineering design and professional services)


The threat of new entrants
 As this segment demands employees with highly expertise knowledge and experience, it’s though asked to find ideal employees from most of player which are eyes on BPO Sector. Moreover, the recognition gained over the years as a destination for the expertise knowledge works at a relatively low cost ( in other words the ”Sri Lankan Knowledge workers” brand name), creates a huge barrier for new a comer. Further, the human capital that Sri Lanka has, increase the barrier by several factors.

The threat of substitutes products and/ or services
As this segment deals with almost none routing, highly complex tasks, there isn't product or service which could take over the human participation.  

The bargaining power of suppliers
with the absent of huge pool of qualified knowledge workers, It is obvious that, the bargaining power of suppliers increase drastically when compared to other segments as this segment have to totally depends on these knowledge workers. 

The bargaining power of buyers
Due to scarcity of qualified knowledge workers, there are pretty much limited number of options available in this segment, since then buyer have to obtain services from existing suppliers. In other words, buyers bargaining power has reduced drastically due to the unavailability of resource persons. 

The rivalry among the competitors
The competition in this segment clearly less than other segments, due to the unavailability of resource persons to fulfill the demand, Though current status is such that, there are few resource full player booming up, countries like Australia, New Zealand and due to this reason there will be moderate competition in near future among the competition.
  

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