Service Outsourcing: A Theoretical Interpretation And Empirical Research

The global economy was shrouded in the haze of a huge economic crisis for some time, and the international economic situation may be faced with a new shuffle. Service outsourcing industry is the key to this change.It is crucial because of three reasons. One is that service outsourcing mainly focused on IT industry. As the leader of science and technology revolution, IT industry developments very fast. And because of the severe competition, in order to strengthen their advantage, corporations choose to outsource business that is not the core operation. Therefore, the IT industry and service outsourcing go binate everywhere. The second reason is not only related to service outsourcing itself, but also provides services that support the manufacturing industry. And since service outsourcing creates a large number of employment, it is specially significance for China. The third reason is that the rise of service outsourcing is due to the industry's low resources consumption, which protect the ecological environment, and adapts to the needs of low-carbon economy well.But for various reasons, the domestic research for service outsourcing industry are mainly from the management point of view and relatively scarce from the economics one. Therefore, this paper starts from the enterprise, using the cost angle, researches service outsourcing from both production cost and transaction cost angles, provides an economics understanding of the service outsourcing. And then, after comparing the advantages and disadvantages of service outsourcing industry in developed countries and the developing countries, this paper focuses on the service outsourcing industry in our country.The research framework of this dissertation is arranged as follows:The first part (chapter 1-2) is the introduction of the problem of service outsourcing and its background. The paper reviewed the rise and development of service outsourcing, and then presented the current research status of service outsourcing industry. After that, the denotation and connotation of service outsourcing are analyzed and summarized from the angle of economics. We need to emphasis a point here, that is, the economics definition of service outsourcing presented in this paper showed the angle of the problem that was studied in this paper. In this paper, we understood service outsourcing as some loose enterprise alliances of the"intermediate organizations"of market through which the enterprises may efficiently avoid the market risk and therefore improve the corporate earningsThe second part (chapter 3) is a theoretical analysis of the service outsourcing. On the basis of the data of service outsourcing domestic and abroad, a framework based on the perspective of cost analysis was constructed. This framework started from the cost-benefit analysis, summarized the theory of the division of labor, the theory of comparative advantage, the H-O factor endowments theory, the transaction cost theory and so on, analyzed service outsourcing thoroughly, and drew a conclusion that the existence and development of service outsourcing depended on the comparing of the summation of production cost and transaction cost and the benefits of service outsourcing, and also the control of the cost is always the biggest motivity for the enterprises to perform the outsourcing services. The key of controlling the production cost is the economies of scale, but the scale benefits will face the problem of decreasing effect. As a result, besides the internal production and purchase the service in the market, the enterprises choose a new cooperation mode, service outsourcing. This new mode model can significantly reduce the production cost and transaction cost for enterprises.The third part (chapter 4-6) is the empirical research of service outsourcing industry. After the horizontally and vertically comparing of the development of service outsourcing domestic and abroad, we focused on the advantages and disadvantages in the developed countries and the developing countries. The outsourcing industry in China is still in the initial stage, but the development is rapid, and the "late-mover advantage" as well as the "curse to the late comer" both exist. In the end, after analysed the status of service outsourcing industry in China, this paper provided some advices of how to keep the advantages.