Analysis On The Motives Of China's Undertaking International Service Outsourcing

With the rapid development of global economy and the continuing deepening of economic integration, service outsourcing has become an important service trade mode in the new round of global industry shift. Transnational corporations of developed countries began to reduce product costs through service outsourcing, optimize the distribution of resources in global market, in order to make enterprises focus on the development of core business, promote international competitiveness of products, enlarge market share, and thus earn higher profit. Service outsourcing plays a promotional role in a country's adjustment of industrial structure and the improvement of trade structure and workers'quality. As a developing country, China's service trade falls behind other developed countries by far. Such a huge disparity has become a vital restriction factor in the development of China's economy. Therefore, it would be necessary to research the agents of undertaking international service outsourcing if our country intend to achieve a breakthrough on service trade. Only a thorough understanding of the overall situation of China's present undertaking of service outsourcing could help formulate target-oriented development strategies, promote the development of service outsourcing, and thus promote the development of China's service trade.The thesis begins with a review of the theoretical basis of service outsourcing. Other than merely analyzing from the management viewpoint, this paper introduces the theoretical foundation of economics and reviews labor division theory, transaction cost theory, and scale economy theory. With respect to management science, the thesis introduces core competitiveness theory and value chain management theory, and theoretically analyzes different countries'main agents to be engaged in service outsourcing, which provide a solid theoretical basis for this article. In view of related theories of service outsourcing, the thesis introduces the concept and main types of service outsourcing, with emphasis on information technology outsourcing and commercial flow outsourcing. Our country is mainly engaged in technical process outsourcing; commercial flow outsourcing is just in the initial stage here.This article analyzes in detail developed countries'main agents to be engaged in service outsourcing, including four points—reducing costs, enhancing enterprises'core competitiveness, rapid development of information technology, and the rich human resources of developing countries. With respect to the agents of service outsourcing development, this paper outlines contract issuing countries'present situation of service outsourcing and our country's current situation of undertaking service outsourcing, as well as main problems in this area. At the same time, as a country with rapid economic development, China enjoys many advantages unavailable for other countries when undertaking international service outsourcing. Hence, China should make rational use of superior resources, make structural adjustment in the undertaking of service outsourcing, actively develop outsourcing with high added value product, and further expand service outsourcing's promotional superiority to China's economy. The impact of undertaking international service outsourcing on our economy is elaborated pro and con, mainly focusing on the positive influence on China's economy. The final part of this article provides some rationalized proposals to the development of China's service outsourcing. That is, we should make a service outsourcing industry with Chinese characteristic with the joint effort of the government and enterprises.It is an inevitable choice for China to develop service outsourcing industry vigorously. Hence, analysis on the agents would play a vital part in this respect. China could only develop targeted service outsourcing industry on the basis of a thorough understanding of various factors of service outsourcing. Then China could further expand the impact of our economy, and thus accelerates the development of its economy.