Studies On The Competitiveness Of Dalian For Undertaking Offshore Financial Services Outsourcing

To analyze the competitiveness of Dalian in the area of offshore financial services outsourcing, we need to consider kinds of factors. Based on the introduction of basic concepts and theories about financial services outsourcing, this paper reviews some related literature at home and abroad, then summarizes four factors---cost, industry foundation, environmental support and market opportunities--- which influence the ability of undertaking offshore financial services, thus pays the way for the whole paper-writing.Undertaking offshore outsourcing involves both foreign and domestic market: outsourcers are from foreign market, so analyzing and mastering the characteristics of this market help to target potential partners more effectively; in domestic market, the competition there is so intense, and analyzing this and the inner competitiveness of Dalian itself is helpful to foster strengths and circumvent weaknesses, to avoid homogeneous competition.To begin with, this paper introduces the global situation of offshore financial services outsourcing, and then focuses on the markets of the United States, Europe and Japan, and at the same time analyzes in detail the reversed T mode of the United States, the olive mode of the European Union and the pyramid mode of Japan; then pays attention to the outsourced locations:after simple introduction of the distribution of those outsourcing locations, this paper analyzes the development situation in China from four aspects---the industry overall size, types of enterprise, offshore markets distribution and regional features.To undertake offshore financial services outsourcing, above is the external environment of Dalian.Hereafter, this paper analyzes the inner competitiveness and existing achievements of Dalian's industry of offshore financial services outsourcing:the prosperity of Dalian's software outsourcing and favorable natural conditions are helpful for undertaking oversea orders; thanks to the drive of the vigorous development of the outsourcing business between Dalian and Japan, the emerging offshore financial services outsourcing in Dalian is booming, especially in Dalian high-tech zone, where gathers many strong foreign and local service providers and financial services outsourcing industry has formed with a certain scale.This paper launches the comparison between Dalian and other outsourcing cities of China from the four aspects bellow.Cost:both the price of water and salary of Dalian are at the medium level. However, high quality living environment leads to high house-leasing cost, and communication cost is also rising, weakening the cost advantage for undertaking offshore outsourcing.Industry foundation:the whole size of Dalian's financial services outsourcing is much smaller than Hangzhou, and most come from Japan; Dalian gathers numbers of foreign service providers and several well-established local ones, but the number of medium-sized and small enterprises which can get oversea orders independently is small, and most of the undertaken business is at the lower-end of the industrial chain; Dalian has an average number of employees in this industry, but the number of students in colleges and universities is smaller than other cities.Environmental support:as for policy and infrastructure, there is no obvious gap; but Dalian has first mover advantage and has achieved much in protection of intellectual property rights and personal information. This paper does empirical analysis and proves that financial environment has positive influence on undertaking offshore outsourcing, but the financial environment of Dalian is much weaker.Market opportunity:This paper does empirical analysis on the relation between the offshore services outsourcing amount and FDI, proving that the latter has positive influence on the former. The total amount and high growth rate of FDI of Dalian state that Dalian is faced with good opportunity to develop offshore services outsourcing.At last, this paper summarizes the above analysis results, and puts forward some development suggestions:the first is to reduce the cost of service provider, the second is to exploit the markets of the United States and European Union, the third is to foster financial service providers, the forth is to develop high-end service, the fifth is to explore more channels to supply outsourcing talents, and the last is creatively give more financial support from more aspects.The features of analytical method of this paper are as follows. The first is to innovate in succession. Former related researches focus on building an evaluation system and rating locations based on this. Taking these research results as references, this paper focuses attention on the single city---Dalian to analyze its competitiveness in undertaking offshore financial services outsourcing. The second is the combination of empirical analysis and qualitative comparison. Based on the collection of large quantities of data, this paper do empirical analysis the relations between some factors and the ability of undertaking offshore outsourcing, thus to compare Dalian with other cities from various aspects. The third is the combination of theoretical sense and practical sense. On one hand, applying the factors which influence undertaking services outsourcing to analyzing Dalian's competitiveness in undertaking offshore financial services outsourcing, this paper riches the existing researches about financial services outsourcing; on the other hand, considering the strongly support to local financial services outsourcing industry from Dalian government, the research results of this paper have some practical value.