| With the development of global economy and Information technology, the field of International trade has evolved in significant ways during the last few decades. One of the most important changes is a new production mode based on vertical specialization. We called it Intra-product Specialization which is division of labor within product and professional division of work in different links on multinational productive value chain. This new phenomenon is becoming main manifestation of international division of work and it Outsourcing is becoming the most innovation pattern of production to reduce cost, optimizing arrangement of resource, smooth the industrial chain and improve the core competence. Since 1990s, with the widely application of IT technology and the rapid development of electronic business, Software service Outsourcing following the manufacturing outsourcing, as a new type of the international industry shifting is playing an important role.Software service Outsourcing is the important power of service outsourcing development. When facing the labor cost, prospects of the market and the development bottleneck of the developed country, multinational corporations have started to accelerate the international transfer of service industry. Depending on the advantage of superior resources, labor force, political policies and economic environments, some emerging economies become the international industry transfer destination. In those countries which is receiving service outsourcing in the world, multinational corporations can receive service products by two ways, the one is foreign direct investment, and the other is international outsourcing.China is no stranger to outsourcing, though absorbing a lot of international manufacturing shifting; China became "world plant". Due to the rapid development, and service industry has already been regarded as a new economic booming point in China. Thorough studies of the service outsourcing activities and decisions have important significance for China to take international opportunities and become main country receiving service outsourcing in the world.This paper products in the global division of labor within the context of economics and management science theory as the basis to study the mechanism of software services outsourcing, process, risk, decision-making strategies, and software service outsourcing industry in China to carry out the analysis and suggestions, hoping to provide theoretical guidance and direction guide.Paper is divided into seven chapters, the specific content of each chapter as follows:The first chapter is the introduction, this study outlines the background, content and methods; second chapter is the software service outsourcing research results have been reviewed; third chapter of the software the status of the development of service outsourcing; fourth chapter in the points from the first use of macro-level economic analysis of the motivation generated by the software outsourcing, and then analyzed using game theory, incomplete information dynamic game model and its equilibrium, in-depth discussion of the IT outsourcing project cooperation between the two sides of the game; Chapter agent theory to build mathematical model to analyze how software outsourcing asymmetry in the Ministry of Information under the optimal contract designed to achieve both win situation; The sixth chapter is based on improved The neural network chosen in the outsourcing business, how to be screened and assessed. Chapter VII of the outlook of China's software outsourcing industry and research summary.In this paper, the following three aspects of innovation:1.The Innovation of research perspective:In recent years, based on the context of economic globalization, industrial transfer, IT outsourcing in developing countries have sprung up everywhere, especially in China. The economic restructuring of china has inherent need to adjustment its related industries. However, many domestic enterprises in China just participate in these industries in part. Therefore, how to research on its internal mechanism and risk control is very important. In This paper, we will introduce agency theory, which can combine the macro with micro levels, then to explore the software outsourcing. This unique research perspective is still in the forefront of the current literature, and thus to form the new theoretical theory in this study. This paper argues that software outsourcing has the strong support by Chinese government, through economies of scale, external effects, agglomeration effects and the contract between the micro enterprises, the profit sharing of the mechanism, then the software outsourcing can flourish. The study is carried out under the above framework, it enrich the motivation theory of software outsourcing, and develop a new perspective about IT outsourcing research. At the same time, it reveals the unique properties and formation mechanism of IT outsourcing more objectively and comprehensively.2.The innovative of research methods:The paper puts forward some fundamental theories and assumptions based on the specification research. It uses reward and punishment mechanism, complete information dynamic game equilibrium and incomplete information dynamic game equilibrium in IT outsourcing incentives under the case of incomplete information game to establish corresponding models. Then this paper will analyze the influencing factors by using optimization, agency theory and Nash equilibrium, in addition, a new AHP-BP select model is erected. It can be used to select the undertake business. And the empirical results validate this model is effective. Generally speaking, the research methods related to motivation for outsourcing analysis, risk control methods, the strategy of partner selection should have some reference value for follow-up study in the future.3.The innovations of research contents:firstly, by reading a lot of related literatures and investigated service outsourcing based on 21 base cities, as well as visits to major IT outsourcing enterprise, we can see that the depth development of China ITO is the inevitable result by Chinese government strong promotion and enterprise itself development at some extent, which is a promote result by several groups together; Secondly, the decision-making game of software service outsourcing cooperation has cooperate features, but there are fundamental differences between decision-making game and cooperative game. Unlike the negotiations in the zero-sum game, "I win" means "you lose", which is the competition relationship. software services outsourcing decision-making process has co-operative game features, it can reflect the state of positive game; third, there are differences between complete information and incomplete information for service outsourcing equilibrium, today service outsourcing decision-making equilibrium is close to a dynamic game equilibrium within the state of incomplete information. In the case of complete information, there is only one sub-game perfect equilibrium, which means tremendous opportunities for both sides. In incomplete information, there may be two perfect Bayesian equilibrium solutions:Implications for the possibility of establishing an outsourcing depends on the outsourcer decision-making; fourth, we design an optimal contract model, it can guide the companies form outsourcing cooperation effectively, which result in win-win.China's service outsourcing development, both theory and practice are still at an early stage operation, this article from the perspective of the.software outsourcing industry, analysis of their outsourcing strategy and its development. Want to come to some of the research results to the development of software outsourcing in China to provide useful help.
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