Research On The Value Chain Upgrading Of Service Outsourcing Industry Of China

With the globally re-distribution of production system of multi-national corporations and the new round of industrial transfer, the advantage and importance of service outsourcing has become increasingly prominent, becoming one of the the most effective strategies for enterprises to increase competitiveness. As a huge developing country, China is rich in human resources, infrastructure and government encouragement, forming a great advantage in the development of service outsourcing industry. Since the status quo that China’s service outsourcing industry is trapped in the low-end of the global value chain restricts the industry’s further growth, making it difficult to meet the needs of economic development, it is of high realistic value to study the upgrading of value chain of the service outsourcing industry.This paper first reviews relevant theories and literatures of service outsourcing, and expounds the concept, present situation and future trend of the industry. Then analyzes the position of China’s service outsourcing on value chain and the obstacle of upgrading, the type of undertake supplier and the upgrading path of suppliers, combining with the concrete analysis of the typical industries such as finance, information technology and logistics outsourcing. Generally, China’s service outsourcing enterprises take the path that starts from improving the service specialization degree, cumulating skills and experiences in the field to enhance competitiveness, gradually climbing to the high-end of value chain. The specific path differs in different areas. After theoretical and case analysis, the paper carries out empirical analysis on the China’s service outsourcing industry upgrading based on the input-output sheet and SWOT analysis. And then use the data of 1996-2012 to explain the factors from the aspect of human resources, industrial development and environmental endowment. Finally, based on the theoretical and empirical analysis, concrete proposals are given for China’s service outsourcing industry upgrading.The innovation of this paper lies in studying the value chain upgrading and the upgrading of value chain of service outsourcing industry. Government should create a fine and complete policy and legal environment from outside, the service outsourcing enterprises should pay attention to brand innovation and commercial mode innovation,as well as business credit. Main deficiency is that the statistical data in empirical research is weak, and the future direction of the research is to explore a more suitable and more rigorous analysis model of service outsourcing.