Research On Wuhan’s Undertaking Capability Of Service Outsourcing And The Influence Factors

Since2006to April2011, China has approved the Beijing, Shanghai, Dalian, Wuhan, Xiamen and other21cities as China’s service outsourcing demonstration cities, and the rapid development of service outsourcing industry is fast. In recent years, Wuhan takes action to improve the development environment of the service outsourcing and has made significant achievements. However, compared with some of service outsourcing demonstration cities, Wuhan’s competitiveness in outsourcing is still insufficient:for example, outsourcing firm size is less competitive, lack of capability of independent innovation and so on.Firstly, we build Outsourcing Competitiveness Index and then compare Wuhan’s Outsourcing Competitiveness Index with other major cities, we found:Wuhan is more competitive in service outsourcing than the western region, however, is less competitive than Beijing, Shanghai, Nanjing, Guangzhou and other eastern cities. Secondly, we analyze the factors of influencing Wuhan’s service outsourcing competitiveness. In term of qualitative analysis, we build analysis framework of service outsourcing competitiveness factors according to Porter’s theory on national competition and he vertical division of professional theory. We consider that labor costs, human resources, market openness and intellectual property protection level all have an impact on service outsourcing contract’s costs and benefits, thereby affecting the competitiveness of the service outsourcing. The term of quantitative analysis, we select data from2006-2012in Wuhan, and use the gray correlation analysis method to analyze factors affecting the effect of service outsourcing competitiveness. Then we found:for Wuhan, the service development level, human resources and the degree of intellectual property protection have greatest impact on the competitiveness of service outsourcing. Finally, according to factors that affect Wuhan’s service outsourcing competitiveness, we propose some advice to improve the Wuhan city circle competitiveness. From the government point of view, we will be working on speeding up the introduction and education of talent, increasing the level of intellectual property rights protection, strengthening the infrastructure to improve the development environment of service outsourcing in Wuhan. At the same time, the service outsourcing enterprises also should strengthen independent innovation ability and build scale to enhance the competence of undertaking service outsourcing.