The Comparative Study On Competitiveness Of Undertaking International Service Outsourcing

Service outsourcing is a kind of economic phenomenon that an organization transfers the service activities which may be performed internally to an independent organization to carry out. Undertaking international service outsourcing can not only promote the export of service industry and optimize trade structure so that economic structure should be adjusted well, but also increase employment and improve the quality of the labor force. Besides, the service outsourcing has some characteristics such as the lower consumption of resource, the less environmental pollution etc. It can promote economic construction and social development while meeting the needs of saving energy and protecting the environment.Many countries, especially the developing ones, came out various policies and formulate the developing strategy to encourage the domestic enterprises to undertake international service outsourcing. Ireland is one of the earliest countries which undertake service outsourcing and occupy a monopoly position in the European market. As the later comers, India surpassed Ireland and became the largest outsourcing-undertaking country in the world in2001.Service outsourcing started late in China. It developed rapidly after "thousand-hundred-ten projects" carried out by Commerce Department in2006. For now, China is the number two in global offshore services market, but has a long way to catch up the leaders. Take India for example, as the largest developing country, China’s GDP is about four times of India’s, but the service outsourcing industry scale is only about a third; China has2.5times service outsourcing enterprises of India while the average scale of enterprises’employees is just a third; The quantity of labor in China is equal to India, but the labor productivity is less than a third. In2010, China is40points behind India in offshore service outsourcing share of global market. The difference in competitiveness of undertaking service outsourcing is the main reason.Entering the12th Five-Year Plan period, China’s economy met some problems in the process of rapid development, such as the extensive mode of economic development, industrial structure, energy, environment, employment and so on. To address these issues, in the national economic and social development12th five-year planning China puts forward some main goals which includes the increase of employment, the raising of proportion which service industry takes in GDP, conserving resources and protecting the environment etc. It has very important practical significance to develop service outsourcing industry in view of the positive role service outsourcing plays in the economic development. As the new sign of economic globalization and the new form of international industrial transfer, service outsourcing received extensive attention of the academia. The systematic discussion of undertaking service outsourcing competitiveness, which is helpful to enrich and perfect the existing service outsourcing and industry competition theory, also has highly theoretical value.Based on the definition of the connotation of service outsourcing, this paper presents a thorough study of undertaking the international service outsourcing competitiveness of China from three perspectives:state, city and enterprise. Crosswise comparison, longitudinal comparison, theoretical analysis, empirical analysis, qualitative analysis and quantitative analysis were all applied in the study. Then suggestions were proposed to enhance the undertaking service outsourcing competitiveness according to the conclusions of the former studies and the current international situation. This paper is divided into seven chapters.Chapter Ⅰ:expounds the actuality of the development of international service outsourcing and its significance to our country economy; introduces the background and value of the study; proposes the research content and mentality; explains research method and the potential innovation and deficiency.Chapter Ⅱ:defines the concept of service outsourcing and other related terms; summarizes the related domestic and foreign research achievements; expresses the relevant theoretical basis.Chapter Ⅲ:compares China with India and Ireland whose service outsourcing industry development is relatively quickly and advanced; analyses our country’s comparative advantages and disadvantages in the international market from the state perspective.Chapter Ⅳ:compares Shanghai and Dalian of China with Mumbai and Bangalore of India, these four cities are fully comparable; analyses our country’s comparative advantages and disadvantages in the international market from the city perspective.Chapter Ⅴ:tests how the factors worked in the process of service outsourcing industry development with empirical analysis; compares Neosoft with Infosys; analysis our country’s comparative advantages and disadvantages in the international market from the enterprise perspective. Chapter VI:analyses the current international situation; puts forward some strategic suggestions and solutions.Chapter VII:sums up the text and main conclusions.There are two innovation points in this essay:First, this paper systematically analyzes competitiveness of undertaking service outsourcing form multi-perspective and multi-angle. Three methods were used to determine the factors influencing competitiveness. Three perspectives were applied to evaluate competitiveness level. This is a new thinking in the study of service outsourcing competitiveness.Second, this paper rationally improved the existing urban comprehensive competitiveness evaluation system and service outsourcing competitiveness evaluation system and constructed a new model at city level; the fundamental determinants of undertaking service outsourcing were identified as basic elements, process elements and environmental elements at enterprise level. These are new opinions in service outsourcing area.Service outsourcing is a burgeoning new area of study so that the research on it started relatively late. Due to the limitation of knowledge and research conditions, this paper did not go deep into the theoretical research and the restrictions of availability of micro data had some influence over the outcome of empirical study, which is left for further research to improve.