China's Global Outsourcing Strategy

Global service economy has becoming the next wave of global economic phenomenon. It is from Mexico, India and with the strong the peak to China. As global leader, India is a success model with more than 10% GDP created from global service outsourcing industries and is keeping the fast growing rate of more than 30% per year. The dissertation started from the concept analysis and introduction; analyzing the difference between the products and services and the driving power to transfer the services globally and conclude the Internet is the foundation to enable the services tradable. Furthermore, to better understand the service outsourcing, we have to start from the outsourcing concept itself. Outsourcing is nothing new which origins from manufacturing outsourcing from last 60's; from onshore service outsourcing from last 80's. The dissertation further fully analyze and present the concept of offshore service outsourcing and its market size and different types which include Information Technology Outsourcing (ITO) and Business Process Outsourcing(BPO). Looking globally, there are two countries need to study deeply in order to capture the trend and fully understand the global service economy which are U.S. and India. U.S. with more than 60% market size is a country we can learn how the outsourcing started; how demand to be transferred; how and what kind impact on society, education during the "white collar" job transforming. India with more than 20 year's dedication and concentration, is not only successfully build the India brand, but also sets a success road map the other country can learn such as develop and focus on human assets through people working in U.S., the importance of national association (NASSCOM) to pull the resources together; relying on merge and acquisition to access to the market. China is becoming the emerging country on global service outsourcing business. China has very strong its own characteristics which are prompt and support from central government. In less than one year, Ministry of Commerce has set up the program of "10,100,1000" and developed the interest on national and city level on promoting the global outsourcing services. The central government esteem the service outsourcing will be the next country development engine after manufacturing outsourcing and fits into the current economic transforming to the harmony society; pursue the human wealth instead of only the GDP; environment projection and encourage more employment. To smooth initiate the service outsourcing in China, to achieve the economy global, China will develop its own strategy through the finding and facts we already found from U.S and India. The dissertation hopes can contribute and benefits to formulate this national development strategy.