A Research On The Influential Factors Of Undertaking Service Outsourcing From Europe And America

Along with the acceleration of economic globalization process, the competition among enterprises is becoming increasingly intense. In order to reduce the cost of production and running, gradually, enterprises hand over non-core service activities outside, which is the formation of international service outsourcing. International service outsourcing means that enterprises, especially multinational enterprises, conclude contracts with special enterprises in the world wide to hand over non-core activities so as to pay attention to core activities, reduce cost and enhance efficiency. In2010, the market size of international service outsourcing reached＄600billion. However, China has only undertaken a small proportion of international service outsourcing. As for the reasons, the main one lies in that the scale of undertaking European and American service outsourcing is too small. Enlarging the scale of undertaking European and American service outsourcing actively could promote the optimization of our industrial structure and enhance the development of service industry as well as the whole economy.This research firstly reviews other scholars’research achievement of service outsourcing drivers and influences. Secondly it seeks for the formation and development necessity of international service outsourcing in the perspective of theory. The theories used include International Division of Labor Theory, Transaction Cost Theory, Value Chain Theory and Core Competence Theory. Thirdly, this dissertation analyzes the states quo and growing trend of undertaking European and American service outsourcing. It accounts for about eighty percent of undertaking ITO, which possesses fast growth speed, in undertaking European and American service outsourcing. At the same time, the proportion of BPO undertaken by our country is relatively small which owns huge potentials. The growing trend of undertaking European and American service outsourcing manifests the following characteristics. Undertaking fields are more widely. Ladder shape distribution among cities that undertake European and American service outsourcing is more obvious and undertaking-cities are becoming much stronger. Fourthly, this dissertation put into use of Pearson Correlation and Regression Model to test influential factors. And then it makes detailed analysis of influential factors in our countries. According to empirical analysis, the influential factors includes labor cost, labor quality, number of software enterprises, quantity of employment in line of IT, infrastructure level of IT, economic performance and development level of service industry, among which only labor cost is negatively correlated with undertaking European and American service outsourcing and the other six factors positively correlated with the latter. In the end, this dissertation puts forward development strategies from the perspectives of government, industry and enterprises directing at existing problems in China undertaking European and American service outsourcing.The author insists that there exists a big significant space in optimizing Chinese industrial structure, transforming economic structure. Therefore, government, industry and enterprises should make joint effect so as to build favorable environment for undertaking European and American service outsourcing. Aiming at unreasonable human resource structure, breezing functions of undertaking areas, distempered-ness of related statistics system and insufficient intellectual property protection, the government should develop programs to cultivate professionals, optimize the overall arrangement of undertaking areas and perfect the related statistics system and enhance intellectual property protection. From the point of industry, the development level of information industry directly relates to undertaking European and American service outsourcing. The development of information industry should be hastened so as to build healthy industry environment for undertaking European and American service outsourcing. There are few industry association organizations. What is more, their functions are very limited. The usefulness of industry association organizations should be expressed to a full extent. The cooperation between the related industry and outsourcing industry is imperfect. Some related industry could not develop a good role in supporting outsourcing industry. We should establish and maintain the cooperation and supporting system between the related industry and outsourcing industry. The undertaking enterprises should fully aware that their scale is small; their independent innovation capability is weak; they lack strategic cooperation planning with outsourcing enterprises and there exist great differences in language, culture and mode of thinking between domestic enterprises and outsourcing enterprises from Europe and America. Therefore, firstly, enterprises should enlarge scales by various means, such as merging with related domestic enterprises or with European and American enterprises in the same industry for the sake of striving for undertaking opportunities. Secondly, enterprises should strengthen independent innovation capability to reinforce service quality and added value. Thirdly, enterprises should highlight the strategic cooperation relationship with clients and formulate the detailed strategic cooperation project. Last but not the least, enterprises should pay great attention to employees’English level and mode of thinking and enhance communication ability with clients.