Study Of The Economic Welfare Effects Of Outsourcing

As the development of globalization and adjustment of industrial structure,China is playing an increasingly important role in international trade and international production division. Service outsourcing can be a breaking point in China's industrial structure optimization and economic expansion.Service outsourcing can be dated long time ago. As a country with labor abundance and huge domestic market, China is famous for taking manufacturing outsourcing."Made in China"is echoing in almost every corner of the world. To search for new economic development, structure adjustment and optimization in China is necessary. We are trying to promote"Service in China"instead of"Made in China".This paper explains the definition of service outsourcing and its theoretical foundation from various angles. Benefit is increased according to the model, and the extra benefit is divided based on the bargaining ability of each part. The paper tries to analyze China's strengths, weakness, opportunities and threats by using SWOT mode. Last but not least, the paper raised some suggestions to promote service outsourcing industry in aspects of macro and micro.