Analysis Of Domestic Service Outsourcing Industry Development Strategy

The writer has discussed the ITO development trend and opportunity in China 2 years ago when ITO in China was at a rapid growth stage. In 2008, global economy has been suffering from the greatest crisis since the great economy recession in 1929, which has severe impact on the offshore service outsourcing business in China. As a service outsourcing professional working in ITO industry, the writer wants to analyze systematically the origin of service outsourcing and the development of service outsourcing home and abroad based on his gained knowledge and experience, and combine the characteristics of service outsourcing industry and the macro environment layout in China, along with enterprise strategic analysis method, using the previous and current enterprises the writer has worked for and is working for as research samples to find the direction for enterprises to move forward and the path for them to survive and develop.Chapter one is the introduction to the essay which outlines in brief the research background, purpose, frame and methodologies of this essay under the background of economy globalization and current financial crisis.Chapter two starts first from the origin of service outsourcing industry and different phases of its development in the wave of globalization. Through reviewing its development, the writer's attempt is to explain that the global delivery model is maturing. However, due to the impact of financial crisis in the US, trade protectionism starts to get its foothold again; meanwhile, job opportunities in some industries begin to transfer to domestic market. Will this crisis give the service outsourcing at a take-off stage in China a deadly blow or will it bring new development opportunities to service outsourcing industry like the previous 2 crises did?Chapter three analyzes the service outsourcing industry's current states and the external environment it is in, and explains the development advantages and opportunities for service outsourcing in China. Especially facing the fact that India has gained the preemptive advantage and the conditions of economy of scale, shall we either choose the approach of confronting the difficulties and fight against them in order to win, or the approach of avoiding its cutting edge in order to let the enemy surrender without fighting against them? The writer brings up his points of views through discussing the client resources, locations, personnel and equipment and other production materials that can form the operation of service outsourcing.Chapter four analyzes the guidelines that are led by the industry policy and direct the industry towards economy of scale and form industry giant; analyzes how minor enterprises can find a breakthrough with the advantage of winning by striking after the enemy had struck and developing towards the economy of scope, meanwhile, focus the strategic development direction on business transformation and the upstream of the value chain. In the industry opportunity analysis section, the writer divides opportunities into regular and innovative. Regular opportunities mainly analyze how to grab the opportunity of economy of scale, economy of scope and the transformation of the known businesses; innovative opportunities mainly analyze the methodologies and approaches to search for breakthrough above regular opportunities based on the historical and macroeconomic environment in above mentioned contents.Chapter five is guided by enterprise strategic management, structural management and operational management, and is using the enterprise the writer is working for and international benchmark enterprises as the object for comparison and analysis, discussing the issues regarding the establishing transformation and development. By comparing and analyzing the enterprise strategy with the business scale, market, products, operation, systematization and the development of value added service, the issues that Chinese service providers have and the gap between local companies and international benchmark companies are clearly seen; meanwhile, it can pertinently contribute to the strategic suggestion for the future long term development and transformation of domestic service outsourcing enterprises, especially minor enterprises.The last part of this essay is the outlook of Chinese service outsourcing industry's future development. The writer believes that integration competence is the key factor of the industry's bigger and stronger growth; the transformation upgrade and catching opportunities are the power supply source for the enterprise to gain excessive profit and realize a leaping development.