Analysis Of The Competitive Advantage Of Nations On Service Outsourcing And Policies Implication

Based on the past wide research on service outsourcing from home and abroad, this paper systematically analyzed the fundamental qualification of China, according to the direction of theory"the competitive advantages of nations"raised by Michael E. Porter, from 6 aspects such as factors, internal demand, correlated and supported industry, enterprises strategy, company structure and competition on same industry, opportunity, and Government's role. Afterwards examined the interaction among the above-mentioned factors, upon the guide of"diamond model", finally conclude that China have possessed the national advantages for developing the service outsourcing industry.The structure of international struggle in the sector of service outsourcing industry has been formed primarily. The USA, Europe and Japan are the main buyer in the world. Facing the huge international demand market, the competition among vendors has become increasingly scorching. The service projects hold by India mainly from North America, European countries used to outsource to Ireland, the Eastern Europe counties'competitiveness advance rapidly. China usually carry out projects outsourced from Japan, although market volume is not so abundantly. China enjoys the distinct advantage of flourish home demand, but met some deficiency on fostering the native enterprises. It is very desiderate to clarify the national orientation in this international market.It is very significantly for China to develop service outsourcing industry. Some countries such as India and Ireland started earlier, and formed their own style and predominance. This paper put forward the principles for developing mode selection with reference to the successful experience of India and Ireland, after analyzing the developing course and status quo situation, and discussed the developing mode from two aspects of business selection and international market exploiting.According to SWOT mode, this dissertation anatomized the industry circumstance from 62 items upon four facets such as STRENGTH, WEAKNESS, OPPORTUITY, THREAT. Afterwards conducted classified analyses with four combination groups as SO, ST, WO, WT, and bring out the suggestions on long-term and medium- term measures, as well as measures for Government and enterprises. As policy concerned, this paper compared the policies of different countries of India Ireland and Eastern European, made it clear of deficiencies of existing policies in China, integrated the multilateral negotiations under WTO and afore-said developing mode, the dissertation brought forward the 12-piece policy suggestions.