On The Development Of China’s Offshore Service Outsourcing Business

With the development of information and economic globalization, the scale and speed of the offshore service outsourcing business are improving. In order to improve the core competitiveness and reduce the cost, the developed countries and enterprises choose to make the non-core business outsourcing. While the developing countries who undertake the offshore service outsourcing business will improve their level of technology and promote employment. At present, the development of China’s offshore service outsourcing business also has problems; its rapid and sound development needs the joint efforts of government and enterprises. This paper will base on the undertaking-country angle, and try to research the main factors affecting China’s offshore service outsourcing business, then put forward some feasible measures according to the results of the study.This paper reviews the domestic and foreign research literature about factors affecting offshore service outsourcing, and uses the time series data of offshore outsourcing services from1997to2012to research the ITO and BPO respectively, in order to discuss the main factors affecting China’s offshore service outsourcing business. The empirical results show that:the labor costs(W)、the development of science and technology level(R&D)、the IT infrastructure(INT) and human resources endowment(TER) are the main factors, and the labor costs’ effect is negative. Finally combined with empirical research results, this paper puts forward the concrete policies and measures to promote the development of China offshore service outsourcing business.