International Service Outsourcing: Operation Mechanism And Effect Study

Since 1990s, the continuous decline in cross border trade barriers and the development of advanced information and communication technologies have made international service outsourcing increasingly feasible and financially viable to a greater number of firms. The international services outsourcing has grown rapidly in recent years to become one of the fastest growing international businesses in the world.As the new form of service manufacturing and labor division, the international services outsourcing is a business model that enterprise (especially multinational corporations) outsource its services that were previously provided internally, such as IT support services, human resources management or business processes, to other enterprises in different country, in order to focus on their core business and achieve the business objectives better. The international service outsourcing has deep influence on service trade, industrial structure and salary income. It also provides new opportunity for developing country to melting into world economy and get new developing engine.In recently years, research on the international services outsourcing has gradually become a hot issue in economics studies, and made a series of research achievements. But there are still some deficiencies. One reason is the development of this phenomenon needed to be further deepened lack of a unified theoretical system; second is the impact of this phenomenon need to be summarized.In previous literature, few were discussed on mechanism of the international services outsourcing's operation mechanism. The thesis tries to integrate the study of the international service outsourcing running system with its economic effects and make systemic and comprehensive researches on international service outsourcing with Economics and the Econometrics as the primary tools; To study its operating mechanism with the global value chain running system as the key thread; to put forward some suggestions for developing our status in the international service outsourcing based on the above results together with its current situation of China. The thesis is divided into eight sections as follows:Chapterâ… :Introduction. It introduces its research background and significance, the domestic and foreign research actuality, its methods and structure, the main innovations and the insufficiencies in the thesis. Chapterâ…¡:Summary of the international service outsourcing. This chapter is the foundation for other ones. First, it gives a detailed statement and makes the distinctions for some basic definitions in the international service outsourcing. Secondly, it reviews the traditional theories for the international specialization and the international trade in the point of the theory evolution. Finally, it analyzes and summarizes its main statistical methods and the principal measure approach used.Chapterâ…¢:Analysis on the global trend of the international service outsourcing. First, it describes the development status of the international service outsourcing; Secondly, it lists the major countries transferring and taking in service outsourcing; thirdly, it analyzes main factors affecting the international service outsourcing; finally, it points out the trend of the international transfer of service industry.Chapterâ…£:Analysis of the operating mechanism of the international service outsourcing, including incentive mechanisms, decision-making and governance mechanisms. In incentive mechanism part, this article analyzes the cause and the development status of the international service outsourcing in three areas comparative advantage, transaction costs and economies of scale; In decision-making mechanisms part, the decision-making of the companies in international service outsourcing activities is analyzed by setting up an international service outsourcing decision-making model; In governance mechanisms part, researching the meaning and the type of international service outsourcing governance, and base on it analyzing the relationship between performance and governance mechanisms, demonstrate the significance of governance mechanisms to the international service outsourcing.Chapterâ…¤:Analysis on the Effects of the international service outsourcing. It demonstrates the impact from three aspects of host country, home country and the whole world. First of all, it demonstrates the effects of the international service outsourcing to the host country, including the effects of technology spillovers, industrial upgrading and improving employment. Secondly, it demonstrates the spillover effects of the international service outsourcing to the home country, including the effects of promoting economic growth and trade and improving employment. Finally, it demonstrates the effects of the international transfer of service industry to the whole world.Chapterâ…¥:Empirical analysis of the effects of China taking in the international service outsourcing. It examines empirically the effects of the international service outsourcing to the host country using the tools of causality test and regression analysis, combined with the data of Chinese.Chapterâ…¦:Analysis on experience of developing international service outsourcing, taking India as an example. Indian's experience on development on international service outsourcing provides China with a useful insight to develop the international service outsourcing.Chapterâ…§:The situation and countermeasures of China's developing of the international service outsourcing. In this part, it describes the situation of China's developing of the international service outsourcing and puts forward some countermeasures and proposals of China's development of the international service outsourcing combined with the analysis above.Conclusion and Prospect. Depending on the analysis in the above ones, it makes some primary conclusions and points out the future research orientation in this chapter.