Analysis On Economic Effects And Influencing Factors Of China's Undertaking Of Offshore Service Outsourcing

Offshore service outsourcing has become an irreversible trend of today's new round of global industrial transfer. For China, to develop its offshore service outsourcing business will not only benefit the outsourcing industry and improve local service providers' competitiveness, but also will help to explore the potential of outsourcing market and contribute to the development of the whole service industry. Therefore, how to promote the development of the offshore service outsourcing industry is a research full of practical significance in China.The paper combines qualitative and quantitative research, as well as combining theory and practice. It follows the research ideas of "analyze account status - look for reasons- make recommendations". First, the paper analyzes the basic principles, realistic motivation and the account status of offshore service outsourcing. Then the paper cites a general equilibrium model of north-to-south outsourcing to analyze offshore service outsourcing's economic impact on the purchasing country and the undertaking country. On this basis, the paper conducts a SWOT analysis of offshore service outsourcing in China, which helps to know the strengths and weaknesses on China's offshore service outsourcing, as well as its facing opportunities and challenges. At the same time, the paper performs a multiple regression to empirically study the factors which will influence the China's undertaking of offshore service outsourcing. At last, the paper makes some specific policy recommendations on how to enhance China's capacity of undertaking offshore service outsourcing, according to the previous theoretical and empirical analysis.Currently, offshore service outsourcing has a rapid development globally. It plays an important role in the formation of the new world trade and production patterns. And it helps to adjust and optimize the structure of the world economy. China should catch the opportunity of international transfer in service industries to promote the development of offshore service outsourcing.