A Comparative Study On The Operational Efficiency Of ITO Companies In China And India

Along with the development of the economic globalization, the social arrangements is going more deepening, a new round of industrial structural adjustment rises all over the world. This has greatly promoted the development of service outsourcing industry. With its favorable industrial policies and human capital advantages, India has already been recognized as the number one of service outsourcing in the world, especially in the field of information technology outsourcing. India has become a world-famous international information technology outsourcing base. This has greatly contributed to the India’s economic and social development. With the support of national macro policy in recent years, information technology outsourcing industry in China has maintained a rapid development momentum, the status in the international market is also rising. But there is still a certain gap when compared with India. However China and India located in close geographical proximity, and also have the same conditions-all are developing country with large populations. The comparison research of information technology outsourcing companies’operational efficiency between China and India undoubtedly have the extremely important practical significance for the development of our country’s information technology outsourcing industry.In this paper, we look from the perspective of information technology outsourcing companies, first of all, we elaborated the domestic and foreign scholars’ study method of corporate efficiency, then Summarizing the advantages and disadvantages of each method. We use the data envelopment analysis (DEA) method to study on the operational efficiency of the representatives of information technology outsourcing companies of China and India. The results showed that the domestic information technology outsourcing companies’overall efficiency is lower than India. Further, this paper analyze the efficiency difference between Indian and Chinese companies respectively from the technical efficiency, the pure technical efficiency and the scale efficiency, and found that there was significant difference in scale efficiency between the Chinese companies and India companies, This shows that our country’s companies’technical efficiency invalid is mainly due to the scale efficiency is invalid, this also pointed out the direction of the efficiency improvement for our country’s companies. Finally, In order to analyze the factors which influence the Chinese information technology outsourcing operational efficiency, this paper further uses the super efficiency DEA model to calculate Chinese information technology outsourcing companies’super efficiency value, and as the dependent variable, use the firm size, geographical location, government support, R&D intensity and market structure, staff quality as independent variables, analyzing their impact on the information technology outsourcing companies’operational efficiency by using Tobit model. Found that firm size, geographic location, government support, R&D intensity have a significant impact on the efficiency of the companies. After the analysis of the affecting factors on efficiency, some suggestions are put forward to promote the efficiency of information technology outsourcing companies of china.