The threat of new entrants
For this kind of outsourcing industries required high capital. such as graphic support computers,new competible systems for design. therefore, there will be a barrier to enter to the industry. on the other hand buyers expect some experience in the industry so it will be a barrier for new comers to enter to the market without any experience.
The threat of substitutes products and/ or services
Easy tools for web designing software designing such as drag and drop tools will be a threat for these kind of service providing destinations. beacause companies might think of design their own web sites, graphics designs by using
The bargaining power of suppliers
In this level, suppliers have the high bargaining power in the industry. When considering this level, there should have some extra skills required for the employees. Such as special knowledge for web designing, software development ect. Telemarketing and customer help desk required special characteristics like verbal communication skills,interaction skills and knowledge about technology such as web conference and video conference.And there is a lack of employee in this category and existing suppliers have the high bargaining power in the industry.
Threat of forward integration will be a next issue for the existing destination. Which means the threat of employees establishing their own production facilities in another destination which facilitate low labor cost and low infrastructure cost.
The bargaining power of buyers
in this level the bargaining power of buyer will be low. Because of the BPO industry has only limited destinations. There will be a low bargaining power from the buyers towards the limited desitination in the BPO industry.
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