They may lose out to companies who make use of IT to improve communications and offer better service to clients. The Internet savvy companies will stop relying on middlemen by buying directly from manufacturers through the electronic platform to reduce their base costs. They will also use Internet and Information Technology to better manage their projects and improve efficiency. Size Matters 10. Increasingly, size may be a major advantage in the new playing field.
Bigger players can buy their materials and labour cheaper because of their greater purchasing power.
The advent of e-procurement will accentuate this trend. Already, there are examples of big boys banding together in e- procurement portals to maximise their commercial clout with suppliers. Bigger players also stand a better chance of attracting quality staff because of the better career opportunities that they can offer. Moreover, they will be in a better position to compete with large international contractors for jobs both locally and overseas. These international contractors by virtue of their size, have the technical expertise, management skills, financial strength and professional resources to secure big projects.