Research On China’s Software Service Outsourcing

The concept "outsourcing" came from the American Glossary ’outside resourcing’.Outsourcing occurs when a company purchases non-core products or services from an outside provider,rather than doing the same work within its own facilities,with the purpose to save costs and improve efficiency.The provider could be both domestic and offshore.As per David Ricardo’s “Comparative Advantage Theory”,two countries can achieve mutual benefit by exporting the commodities or services which they have comparative advantages in and importing the others.In the late 1990 s,with the expanding and deepening of international division of labor and collaboration,offshore outsourcing business in emerging economies such as India and Australia witnessed rapid growth,especially in IT industry.Since the year of 2003,with the advantage of rich well-educated human resource,sustainable capability of supply and payment,China quickly catches up and develops into the 2nd largest outsourcing service provider out of the world.Boosted by the implementation of “one belt,one road” policy and pilot projects for innovative development of service trade,Software Service Outsourcing will play a more and more significant role in international trade business of China.Under such circumstances,this paper focuses on studying Software Service Outsourcing development in China,analyzing the achievements,raising the existing problems and coming up with the suggestions for improvement.This paper applies three research methods: empirical analysis,comparative analysis,macro-analysis and micro-analysis.The possible innovation of this paper may lie on 3 aspects: 1st,new angle.In the past,most studies viewed from demanding side.Even from supplying side,they’re India.This paper focuses on China,the most promising emerging economy of the world,which has showcase meaning for the other developing countries.2nd,new evidence.Software outsourcing industry is innovative and ever-changing.Studies of years ago,can hardly reflect the actual situation of the current market and industry.This paper is based on the newest market data,policies studies and industry forecast,which is more up-to-date and referential.3rd,new solutions.For example,regarding on software outsourcing industry distribution in China,this paper suggests expanding the business from 1st tier city to the 2nd & 3rd tier cities and the Mid-west regions,via which China can realized regional development balance and overall industry upgrade.