China To Undertake International Service Outsourcing Empirical Analysis

With rapid advances in ICTs(information and communication technologies) and global industrial restructuring,service outsourcing is becoming increasingly attactive to developed countries and developing countries because it helps them to save costs and to focus on their core business.Some offshoring of servics to China is already taking place,but on a relatively small scale.Nevertheless,there is a great potential for growth of services sourcing from China.This paper first gives a brief reviews of the basic theory underlying the influencing factors of offshoring service and then analyses current development in service offshoring to China and addresses its growth potential. It ananlyses indicators on the quantity and quality of available human resources,market scale,open of service trade.The paper also looks at infratructure indicators,wage indicators and American unemploymentt rate which is much more worthy to be considered in this special year.Compared with previous rankings,improved infrastructure and enhanced skills have increased the attrativeness of China as a relatively low-cost location.However,China scores relatively low in the econonic freedom indicator and business environment indicator,which could reflect some concerns about differences in corporate culture,but also about IPR(intellectual Property Rights) protection,or uncertainties about other business-related factors.The paper studies the influencing factors of offshoring services to China based on the method of theoretical and empirical analyses.It builds econometric model to give a quantitative analysis of the relevant factors, through which we found the important factors in the development of offshoring service to China.In the latter part of the paper we puts forward some suggestions and recommendations to the service outsourcing industry development in China.