A Study On The Competitiveness And Influencing Factors Of Undertaking Offshore Service Outsourcing Of China And India

With the joint promotion by a burgeoning revolution in information technology and globalization,service outsourcing presents a vigorous development trend.It is becoming an emerging way of international industrial shift.It's also regarded as an important business model by multinational companies to achieve global allocation of resources.More and more developing countries involved in this wave of undertaking service outsourcing.Offshore service outsourcing can provide a competitive advantage for the multinational corporations.In this way,multinational companies can focus on developing core business,outsource the non-core business to the other firms,and establish a long-term partnership with the package enterprises.For those countries who undertake service outsourcing,outsourcing can provide more jobs,rise the ratio of career.It also can reduce the pollution and realize a friendly way to environment.Therefore,the author thinks that the present research on offshore service outsourcing has certain theoretical and practical significance.In China,outsourcing started very late,but its speed grew very quickly.Our country becomes a competitor in the global outsourcing market.In recent years,with the emerging of other countries——the Philippines,Malaysia,Indonesia and other countries in Southeast Asia,the competition between these offshore service outsourcing countries is intensely.There also exit some new problems in our current economy,such as lacking of motivation to support the foreign trade and updating the industries' structure.Undertaking offshore service outsourcing can take the advantage of technology spillover effect to cultivate talents,accumulate knowledge.Continued to promote the competitiveness of the service outsourcing has become the demand for our countries'economy sustainable.China and India are important neighbors to each other and major emerging developing countries,and also known as the "BRICS".There exist plenty of similarities and many differences between their developments.In India,the government makes many preferential policies in supporting the outsourcing.English as the mother language,provides an advantage in communication.There is an adequate work force in India,so its human capital also has advantages.Therefore,India becomes the core of service sourcing.China as the world's second economy,has more perfect infrastructure and a huge domestic market,but its service outsourcing development lags behind the India.In recent years,with the labor's cost arising,the attraction to the developed countries is reducing.In the meantime,service outsourcing meant some posts in the developed countries shifted to other countries,triggering a new contradictions and conflicts in international economic relationships.In the United States and other countries,more and more local governments appeal to restricting the service outsourcing so as to guarantee the local jobs.In those backgrounds,it is particularly important to study how to improve China's service outsourcing competitiveness.Although many scholars study the outsourcing deeply,but they mostly focused on the developed countries' perspective,few of scholars from the development countries,view.Even if there are some scholars study the service outsourcing countries,they focused on the motivation and effect to analyze it.Most papers are theoretical contents,a few of scholars use the empirical method to study the problems.This paper focuses on the factors of outsourcing competitiveness in China and India.The first chapter is introduction part,it mainly pointed out the research background and significance,the research contents and methods,and the innovation and deficiency of this thesis.It also summarizes the theoretical achievements.The second chapter is the literature review part,it defines the research priorities——offshore service outsourcing,The third chapter analyzes the current development situation at the beginning,and then compares from the index of RCA and MS.The fourth chapter is the empirical study of this thesis,research results shows that India has a comparative advantage than China.The fifth chapter concentrates on some measurements we should take to promote the level of service outsourcing.