| Since the 1990s, with the progressive development of Information Technology and global industrial diversion, the globalization of service has continued to evolve and mature. Outsourcing can provide multinational corporations substantial cost savings and the capability to focus on core-competencies, thus contracting out the non-core service business process to developing countries began to be considered as one of the most effective strategies and has been widely adopted among developed countries. Undertaking offshore service outsourcing possesses the advantage of lower resource consumption, less pollution to the environment while retaining a higher added value. In addition, it offers significant opportunities for developing countries to industry restructuring, economic growth and unemployment cut-down. Therefore, how to enhance the ability for developing countries to undertake offshore service outsourcing has great significance. Under the background of globalization, China, India, Russian Federation, Brazil and South Africa, which are known as the "BRICS". have accomplished great achievements in undertaking offshore service outsourcing and the fierce competition on seeking more market share are expected to escalate among said countries. Understanding which factors can influence the ability to undertake offshore service outsourcing and how to improve that ability now have great value to China as it is one of the most promising countries in the world. Although scholars from all over the world have conducted some profound researches on offshore service outsourcing, most of the researches are conducted from outsourcers perspective. Admittedly, even if some are conducted from the outsourcee’s perspective, these researches are mainly focusing on the eminent countries which have received good reputation on undertaking offshore service outsourcing such as India and Canada, which makes these research lack of comparison among countries from different levels.As for research method, most scholars adopted the qualitative research instead of the quantitative research. To enrich the research objects and research methods, this paper selected BRICS which come from different levels of undertaking offshore service outsourcing as the research object to discuss the factors that affect the ability to undertake offshore service outsourcing. Then an econometric model was built to further illustrate how these factors affect the ability to undertake offshore service outsourcing.Firstly, this paper introduced related theories about service outsourcing. Secondly, an overview of global service outsourcing and some plain facts about BRICS undertaking offshore service outsourcing. In the comparison among BRICS, two Index were adopted to make this comparison more valid, which are the Revealed Comparative Advantage and International Market Share. Thirdly, this paper chose 7 influencing factors based on previous theories, which are Economic Performance, Openness of Service Trade, Labor Cost, Human Capital, Infrastructure Construction, Country Risk and Intellectual Property Protection. Also, an effort was made to make the conclusion more persuasive by conducting the research from both qualitative and quantitative angles. In the end, some policy recommendations were given according to the analysis and conclusions in previous chapters.This paper has two main innovative points which are the breakthroughs in choosing research objects and research methods. Regarding the research object, as mentioned before, BRICS are from different levels of undertaking offshore service outsourcing countries and the horizontal comparison among them could make it more easily to see China’s advantage and disadvantage in undertaking offshore service outsourcing. Regarding the research methods, this paper not only conducted a qualitative research as many scholars did before, but also built a econometric model based on panel data so that we could understand how these factors affects the ability to undertake offshore service outsourcing for BRICS. |
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