Research On The Competitiveness And Influencing Factors Of China’s Offshore Service Outsourcing

Since the information technology is developing quickly, and the global industrialstructure has been changed, offshore services outsourcing is gradually becoming an importantpart of the global services trade. Although China’s offshore service outsourcing started late,but developed rapidly and with great potential. In2011, China received offshore outsourcingcontract amount reached$23.83billion, increased by65%, accounted for23%of world’soffshore outsourcing market. Although the total amount is outstanding, but there is still a gapbetween China and other service outsourcing country like India and Ireland. Besides, China’score competitiveness is relatively weak. How to keep the core competitiveness under theshadow of international financial crisis and intense competition is the main problem thatChina’s outsourcing industry faced.Based on the theory of the service outsourcing and industrial competitiveness, this articlefirstly introduced the current development of global and China’s offshore services outsourcing,select the trade competitiveness index, revealed comparative advantage index andinternational market share to evaluate and analysis the competitiveness of China’s offshoreservice outsourcing. Secondly, based on the perspective of diamond model, the articleanalysis the main factors that affect China’s offshore services outsourcing, and compared withIndia to find out the drawbacks. Thirdly, based on qualitative analysis, the influencing factorsof China’s offshore outsourcing services index system is constructed, using econometricmodel to verify the validity and importance of the indicators to make the result moreconvincing. Finally, the empirical results were analyzed and suggestions were made.Through research, we can get the following conclusions: Firstly, the competitiveadvantage of China’s offshore service outsourcing is weak, there are still large gaps betweenChina and other countries; Secondly, compared China and Indian’s service outsourcingfactors, we can find out that the salary level is not large between China and India, and China’sinfrastructure is better than India, but we are far behind India in outsourcing talents, capitalinvestment, the development level of the service sector, industry clusters and enterprise’sscale; Thirdly, empirical results show that, human resources, infrastructure, the developmentof China’s service outsourcing has a positive impact on China’s service outsourcing, theappreciation of RMB and rising domestic wage level have a negative affection of the serviceexport, lack of core competitiveness and less protection of intellectual property rights limitsthe development of offshore outsourcing. In light of these conclusions, the paper put forwardthe following suggestions: At the macro level, school-enterprise cooperation and personnel training should be made to solve the problem of the shortage of China’s service outsourcingtalents, strengthen infrastructure construction, and provide a better environment for serviceoutsourcing, complete knowledge protection of property rights and other related systems,enhance the development of the service sector. At the micro level, encouraging enterprises tobecome bigger and stronger to have their own brand, establish comprehensive industryassociations, strengthen the competitiveness of the enterprises to resist risks.