Economic Research On Service Outsourcing For Enterprises

Service outsourcing is a significant way for enterprises to make use of productive service, and to realize resource disposition optimization. It is also an important decision in the development strategy, as well as a promoting factor for industrial structure optimization.One of the significant characteristics of service outsourcing different from generic outsourcing is the changes for producing costs and transaction costs caused by the heterogeneity of service. However, the existing studies on service outsourcing ignore the impacts of service heterogeneity on production costs and transaction costs when enterprises make service outsourcing decision.This thesis analyzes the impacts of Service heterogeneity on production costs and transaction costs specifically based on the concept of Service heterogeneity, combining the prior scholars'study framework about outsourcing decision. Production costs are analyzed from two aspects as economy of scale and economy of scope, while transaction costs are analyzed from three aspects as market structure, uncertainty, as well as asset specialization.On the aspect of economy of scale, the higher are the service product heterogeneity, the lower is the productive standardization extent, and the more inferior is the economy of scale for self-production, then the higher are the production costs. What's more, the demand scale for certain service of an enterprise is so small that it cannot reduce the average costs through production scale expansion, therefore, it inclines to service outsourcing. On the aspect of economy of scope, the higher are the service product heterogeneity, the stronger is the relevance of service process with other productive processes,the higher are the production costs.On the aspect of market structure, service product heterogeneity improve the monopoly level of market the upper enterprises locate in, thus increase the transaction costs of outsourcing enterprises, which will weaken the tendencies of outsourcing. One the aspect of uncertainty, service product heterogeneity make it uncertain for the upper enterprises to provide service, thus make the profitability greatly uncertain and improve the transaction costs. On the aspect of asset specialization, the investments of labor capital for the heterogeneity-service improve the asset specialization, thus make the enterprises oppressed in the final product market and make the transaction costs improved.In short, the heterogeneity of service outsourcing affects enterprises production costs and transaction costs. Business services outsourcing decision-making should take into account the heterogeneity of services.