Research On The Influencing Factors To Undertake Offshore Outsourcing

Along with the in-depth development of economic globalization and international industrial transfer, countries around the world are turning their attention to outsourcing,for the purpose of stimulating domestic economy. In order to increase profits and reduce costs, multinational corporations start to make their non-core businesses outsourced to outside borders, producing win-win through cooperation.Offshore service outsourcing becomes an important form in this industry transfer wave. Outsourcing business not only takes advantage of lower resources consumption, less environmental pollution, but also can produce high added value, promote the rapid development of domestic economy. Therefore, countries actively undertake offshore service outsourcing as a development strategy. Known as the "BRICS", Brazil, Russia, India, China, and South Africa continue to improve infrastructure, lower domestic transaction costs, trying to attract the attention of contracting States to get more access to package business.Naturally, competition among the five countries will be fierce.Developing offshore service outsourcing business on the one hand can optimize domestic industrial structure,upgrade economic model; on the other hand can promote domestic economic development, well solve the employment problem of domestic residents. So it is of great research value on how to improve the ability of undertaking such services..Although scholars and institutions at home and abroad have made in-depth study on service outsourcing, the majority of them studied it from the outsources’ angle, while few from the outsources’ angle. The studies mostly selected India as a comparison object; lack the comparison between different outsources’ levels, mostly lack of integrity.The main method they used is qualitative analysis but lack of the empirical test. This paper tries to make up this research gap. Based on these blanks, the author looks at all BRICS countries to make qualitative and quantitative analysis from six major factors that affects the offshore outsourcing buyers, which makes this paper practical and innovative.This paper is composed of five parts. The first part introduces the research background and significance, the thinking and methods as well as innovations of this paper; the second part, theory of offshore outsourcing, mainly describes and reviews theconcepts and theories of offshore outsourcing services; the third makes an analysis and comparison of the development status of offshore service outsourcing of the BRICS; the fourth part makes key contents of this paper. It makes qualitative and quantitative analysis and comparison of the influencing factors of BRICS undertaking offshore service outsourcing. Research conducted on behalf of these factors with six indicators,economic factors, social factors, technological factors, human factors, industrial and policy factors on BRICS, were compared. The results show China’s advantage in economic development level, R & D expenditure and labor costs, but disadvantage in the construction of infrastructure, openness of services and quality of services. The fifth is about research conclusions and policy recommendations. This chapter draws conclusions mainly based on the previous analysis, accordingly finds out what the problems our country face in undertaking offshore service outsourcing, and proposes policy recommendations based on these issues.This paper has three innovative points. First, breakthrough of research objects. The study in this paper breaks the perspective limitation of developed countries, extends to the BRICS countries, with greater contrast and wider viewing angle. Second,comprehensive content. Based on the previous researchers, the author collates and analyzes to identify the intrinsic link of factors, then obtains more scientific conclusions;Third, timeliness of data. This paper adopts the latest data which is from 1996 to 2014, a more realistic reflection of the current situation BRICS countries undertaking offshore service outsourcing, which is more practical and referable.