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Influencing Factors, Economic Effects Of Offshore Outsourcing In Services And China's Choice

Posted on:2012-04-02Degree:DoctorType:Dissertation
Country:ChinaCandidate:D G LiFull Text:PDF
GTID:1119330368979801Subject:World economy
Abstract/Summary:PDF Full Text Request
1. Background and IntroductionOffshore Outsourcing in Services is one of the new business management patterns for multinational corporations, by transferring non-central business out to overseas excellent professional service providers, which allows organizations to make best of the enterprise resource advantages to focus on core business development, and ultimately to lower factor costs, increase productivity and efficiency, and enhance their core competitiveness and adaptability of the adaptation for the external environment.In the past of nearly 20 years, at the microeconomic level, a large number of technological progress and organizational innovation efforts, driven by the structure change of international division of labor which is from the traditional to the modern service industries and manufacturing sector have undergone major changes. On the one hand, accompanied by the transfer of foreign multinational manufacturing rapid expansion of the developed countries to further strengthen its advantage in the modern service sector, the market continue to refine the division of labor, and consumer services and the manufacturing sector has an important supporting role in the production of services sustained strong market demand; On the other hand, emerging market countries strong economic growth through strong manufacturing capacity and export capacity in the world economy began to occupy territory in the increasingly important position, a smooth transition through effective capital accumulation "poverty trap", within the industrial structure optimization of human capital and labor productivity increasingly strong foundation, coupled with the liberal foreign policy, the environment and further improve the supply side but also from developed countries have to undertake the objective conditions for offshore outsourcing services. It is in this context, offshore outsourcing services in ten years time, sprung up and developed rapidly.Since 2010, the global offshore outsourcing market began service out of the shadow of the global financial crisis in developed and emerging market countries present diverse economic environment, offshore outsourcing has entered a new period of development. In 2010, total global outsourcing 600 billion dollars, of which the average annual growth rate of offshore outsourcing services up to 20% by 2020 will reach 1.65-1.8 trillion-dollar scale.In the past,"Eleventh Five-Year"period, with the state ministries to promote the service outsourcing industry, the gradual implementation of the policy and the national 21 service outsourcing demonstration cities, government support policies have been proposed, jointly promote the local community into a full-service outsourcing industry new stage of development, China's offshore outsourcing services is also a leader in the market competition has been growing rapidly.?First half of 2010, the national service outsourcing enterprises to undertake offshore outsourcing execution of the contract amount $ 4.97 billion, an increase of 94.3%. The rapid development of China's offshore outsourcing services, and employment and income had a positive role in promoting, but it should be noted that China's offshore outsourcing services to undertake, there are still many problems to ignore.Faced with the further adjustment of industrial structure and economic growth mode transformation of enormous pressure, in the current economic recovery is not yet clear in the context of the situation and services of international industrial transfer important historical opportunity, through a detailed analysis of the basis for undertaking offshore outsourcing services, factors, economic effects, will contribute to national strategies and corresponding offshore outsourcing supporting policy development and implementation, thus effectively elements of China's power resources and basic industries, to enhance China's position in the international division of labor and competitiveness, this is the deepening of China's economic reform, the transformation of economic growth and scientific development to achieve a major strategic decision.2. Offshore Outsourcing Services: Concept, Characteristics and Motivation(1) Concept of offshore outsourcing servicesFrom the point of view of concept and content, originated in the outsourcing services offshore outsourcing, and accurate understanding of the concept, need to distinguish between service outsourcing and manufacturing outsourcing, offshore outsourcing and offshore outsourcing in different content. In addition, the precise combination of offshore outsourcing "Offshore" and "Outsourcing" two aspects. Offshore outsourcing services have three important properties: First, offshore outsourcing certain services in the service sector, manufacturing sector or the investment part of the production process of services, or processes, or services into their own part of the supply ; Second, offshore outsourcing services must occur outside the enterprise, but also a cross-border transactions, which are essentially within the international division of vertically non-integrated mode (this will be detailed below); Third, offshore outsourcing services is usually based on comparative advantage, the business, "Refocusing" and the purpose of economies of scale occur, which is based on the material basis of services globalization and information technology is highly developed.From the perspective of division of labor, the evolving international labor division patterns have an important basis for outsourcing, offshore outsourcing services and FDI is vertical specialization of the two basic ways. From the theory in terms of organization, service outsourcing enterprises through external service providers enter into contracts to complete the last in-house business activities, is the human capital market activities, corporate contracts and service contracts on a global scale common configuration, both the two type of contracts advantage(2) Offshore outsourcing in services and characteristicsOffshore outsourcing global services industry there are three different forms, namely, information technology outsourcing (ITO), Business Process Outsourcing (BPO) and knowledge process outsourcing (KPO), also a new rise of ITES (IT enabled services). The production of various types of offshore outsourcing and delivery took place in the cross-influence.At present, the global offshore outsourcing services market and business development are the following characteristics: First, the industries involved in offshore outsourcing continues to expand, offshore outsourcing market has been dominated by the formation of ITO and BPO, financial integrated outsourcing as the main content KPO and ITES as an important complement to the multi-level, cross-cutting pattern; Second, offshore outsourcing value chain from low to high end advanced by "the most basic technical level." upgrade to "high-level consulting and design" field ; three main body of the scope of offshore outsourcing is becoming more diversified,?The current level of offshore outsourcing in the service market, the main contracting company from the United States, Japan and Western Europe, but contracted in the secondary (subcontract) market, with the ability of contracting countries have more and more, weaving together in a huge global offshore outsourcing web services. Fourth, the global outsourcing vertical markets get more attention in recent years, for those outsourcing service providers, by mastering the necessary expertise and valuable experience to successfully enter vertical markets, provide more professional services to customers the ability to become an effective competitive strategy.(3) Global motivation of offshore outsourcing in servicesFirst is for labor arbitrage and cost incentives. Large number of empirical studies show that multinational corporations to cut labor costs offshore outsourcing services and the most important initial motivation dynamics, human capital, which is higher for the design, development, information technology services, software, service-oriented high-tech area, was especially evident.Second, is the realization for economies of scale. Economies of scale is, the process is multinational aspects of offshore outsourcing and one of the mainsprings. As service products are also often involved in different processes and aspects of supply, if the use of completely built-oriented production, and ultimately determine the overall optimal size will depend on a key part of the lowest scale, resulting in welfare losses. Outsourcing services are able to solve this problem.Third, is to enhance the core competitiveness and organizational change. Offshore outsourcing services, another important driving force is the core business of multinational convergence, and thus strengthen its resources and capabilities in areas of strength, improve core competitiveness, increase their flexibility to respond to market changes.3. Influencing Factors for Offshore Outsourcing Services - China's Outsourcing Undertaking CapabilitiesIn the Past of "Eleventh Five-Year" period, China's offshore outsourcing services is the development from scratch, has expanded rapidly during the gradual expansion. As of the end of 2010, the country has established 21 service outsourcing demonstration cities, service outsourcing business to reach 12 706, employing a total of 232.8 million people, offshore outsourcing services to undertake the total contract amount of $ 19.83 billion, an increase of 34.3%, the contract perform the amount of $ 14.45 billion, an increase of 43.1%. With the basic conditions for sustainable domestic package perfect, local outsourcing to enhance competitiveness of enterprises and the global economic recovery and improvement of the situation can be expected, "five" will undertake the outsourcing services in China accelerated development.At present, China's offshore outsourcing services market showed the following characteristics: First, the offshore outsourcing business has expanded steadily access package, and second, significantly improving the quality of outsourcing professionals, third, then package the wider regional distribution companies, four are then package the source structure is becoming more diversified. As a late start, the development of outsourcing services are also encountered some problems: First, outsourcing legal environment and market regulation needs improvement, the second is a comprehensive international offshore outsourcing business less competitive, third is involved in offshore outsourcing more limited scope.Influence the development of offshore outsourcing services, including economic liberalization, the main factors, industrial policy environment, basic services, human capital elements of the four aspects. China's offshore outsourcing services through Chengjie Li empirical study, we found that: First, the higher a country's degree of liberalization, outsourcing services to its positive incentive to undertake the greater; Second, services exports and the tertiary industry, the extent of network development, per capita GDP into positive correlation, and service labor costs, income tax is inversely proportional relationship between the variables.4. Economic Effects for Undertaking offshore outsourcing services - China's outsourcing revenue(1) Economic effects for undertaking offshore outsourcing servicesFirst is the employment expansion effect. Multiple effects of offshore outsourcing to achieve a comprehensive, positive side of its butt pack more obvious externalities, employment expansion, as a positive external effects of offshore outsourcing. Outsourcing or outsourcing to employment docking package is mainly reflected in two main aspects, first, to improve access package side of the employment, the second is to improve the access package side relative wages.Second is the output increased effect. Offshore outsourcing services to drive the linkage effects of related industries, an increase of output. Offshore outsourcing services to promote capital investment in related industries, technological progress, the objective to expand the services of market size, technological level, the number of practitioners, to promote the growth of total output and service improvement. Third is the technology spillover effect. In the process of outsourcing, contracting State or State enterprises or enterprises with access package there are technical differences in the relative, which makes the division between the two is necessary to achieve cooperation and sharing of technology and technology benefits. You can then package the country in its own labor costs and market size advantages for technical support in developed countries, developed countries introduce advanced technology and management experience to achieve the outsourcing of technology to enhance their positive externalities.Fourth is the investment result effect. Multinational corporations and developed countries to enhance their own interests, to manufacturing and services to low-cost countries or regions, and thus the emergence of offshore outsourcing services. Package for the country then, offshore outsourcing services to undertake to increase their volume of foreign investment, and thus bring about certain effects caused by investment.Fifth is export induced effects. Offshore outsourcing services to undertake the export incentive effects, is to undertake offshore outsourcing services in the country caused by the increase in their exports and their export structure of the optimal adjustment. Countries in their existing resources, to undertake on the basis of technology outsourcing business, take advantage of their comparative advantage in producing low cost products for export, to undertake the national economic benefits.(2) Economic effects of China's offshore outsourcing services: Empirical AnalysisThe use of panel data and endogenous growth model, the economic effects of China's offshore outsourcing services emerging from the study following conclusions: First, the outsourcing service then forward the expansion pack to promote China's tertiary industry employment levels, the contract amount is likely to reduce employment levels in the region; Second, services for the offshore outsourcing business services output has a more significant impact, employment in the tertiary industry output value of tertiary industry and the actual increase in the amount of negative correlation; its third, China's service outsourcing business activities involved did receive a positive technology spillover externalities brought about, which is reflected in China's outsourcing services, positive impact on the size of China's tertiary industry's total factor productivity, that outsourcing industry improve the technical efficiency; Fourth, China's service outsourcing development in the still largely dependent on China's exchange rate system, the proportion of output growth and outsourcing, outsourcing rates and services exports confirmed the positive relationship between outsourcing industrial development brought about by the export incentive effects.5. Advices to promote China's offshore outsourcing servicesOn the basis of previous research paper, on the promotion of China's offshore outsourcing in services to undertake targeted recommendations. First, the design and development offshore outsourcing services in China to undertake the overall planning, include the following aspects: First, offshore outsourcing services will undertake as a national strategy, the second is to develop a scientific and rational development of the offshore outsourcing industry goals, three from the strategic location on the level of planning and deployment, fourth is to strengthen the macro level of government services and risk prevention. Secondly, to undertake to protect China's offshore outsourcing services to support good policy, including the following aspects: First, establish and perfect the system of intellectual property protection, and second, to strengthen the existing industrial policy, implementation of the results, three industry associations and alliances are playing an active role in the four fiscal policy is to enhance the incentive effects of outsourcing. Third, to strengthen China's offshore outsourcing services to undertake infrastructure, including the following aspects: First, the industrial park to play outsourcing industry cluster effect, the second is to expand through mergers and acquisitions and financing firm size and the third is to enhance the business management outsourcing level and comprehensive strength, the four contracting companies to develop the international market diversification. Finally, the implementation of China's human resources to undertake strategic offshore outsourcing services, including the following aspects: First, the structure of the education system offshoring services, the second is the implementation of offshore outsourcing services human resource strategy.
Keywords/Search Tags:Offshoring Outsourcing, Services, Influencing Factors, Undertaking Capability, Advices, China
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