The Analysis On The Economic Effects Of China’s Service Outsourcing

Since the 21st century, the world has entered a new round of cross-border transfer of services. The new round of global industrial restructuring with the main characteristic of the transfer of service outsourcing, high value-added manufacturing and R&D part is taking shape. Due to facilitating enterprises to focus on limited resources to concentrate on core competitiveness, service outsourcing has been greatly appreciated by the outsourcers. The outsourcees also favor service outsourcing because of its added value, high capacity of information technology, low resource consumption, less pollution etc. Service outsourcing is rising rapidly worldwide. As an emerging service outsourcee country, the development of China’s service outsourcing has great significance for China’s whole development. It will not only help to expand trade in services and optimize trade structure, it also provides job opportunities, improve the skills of workers. Meanwhile it serves to promote labor productivity and helps industrial upgrading and enhances the value chain.So, how to rapidly and healthily develop China’s service outsourcing has become a major issue of great practical significance.Therefore, this article means to study the economic effects of service outsourcing. On the basis of a large number of literature and references on the economic effects of service outsourcing, the article clarifies the theoretical knowledge of related concepts and related economic theories. After reviewing the history of the development of China’s service outsourcing, the paper analyzes its current overall size, business structure and main overseas markets to describe the current situation of China’s service outsourcing from multiangular view. The paper uses charts, data analysis and other mathematical statistics to study the relationship between China’s service outsourcing and services exports, employment, technology spillovers and industrial structure respectively on a qualitative analysis way. On this basis, it utilizes Eviews6.0 statistical software for data processing and regression analysis, and then gets the precise economic effects as well as the degree of each effect.According to analysis above, the model is constructed to test the economic effects of China’s service outsourcing. We can get the following conclusions:China’s service outsourcing has positive effects on trade, employment and technology spillover. And the degree of various effects varies. Among these effects, the most significant effect is technology spillover, followed by the employment effect and trade effect is least obvious. Then with the current situation, the paper analyzes the reasons for the various outcomes. Finally, it has put forward relevant policy recommendations to government, industry associations and enterprises. Firstly, the government should actively create a favorable policy and legal environment for undertaking international service outsourcing, characterize the development of service outsourcing Model Cities and promote service outsourcing industry eastern, central and west gradient transfer, strengthen the cooperation with the countries who are along the’One Belt and One Road’to expand emerging offshore markets. Secondly, industry associations should establish and improve electronic information and public service platform to coordinate a balanced regional development, study and assist the government to make service outsourcing industry policies and regulations and accelerate the accumulation of human capital to meet the demand of service outsourcing enterprises. Finally, the service outsourcing enterprises should be proactive and integrate resource to expand business scale and enhance their carrying capacity, focus on accurate positioning, feature development to avoid disorderly competition. At the same time, the enterprises need to strengthen technology introduction, research and innovation to create own brands.Global service outsourcing is ascendant at present. China should make good use of the current favorable environment home and abroad; seize the rare opportunity to develop its service outsourcing, as a break point to boost the development of the whole service.