Industry Upgrade Effect Of Service Outsourcing

In the 1990s,along with IT(information technology)breakthrough,services unsuitable for outsourcing become more and more commercialized and standardized,which break down the "service is not transferable" hypothesis of classical trade theory.Service outsourcings based on global value chain,especially international ones,are springing up rapidly all over the world,and service internationalization has been becoming the center of economic globalization in the twenty-first century.Just like manufacture outsourcing,international service outsourcing is also under the risk of being trapped in the low value-added part of the global value chain.So how can we reduce negative impacts of international service outsourcing on industry upgrade?In fact,service outsourcing is not necessarily to undertake international service outsourcing from abroad.It also includes domestic service outsourcing outsourced to domestic enterprises.Compared with international service outsourcing,domestic service outsourcing has less adverse impacts and more significant industry upgrade effects.As international service outsourcing is rooted in global value chain and domestic service outsourcing is rooted in national value chain,so the substitution,complementation and strengthen relationships between the two kinds of value chains can bring alternative and competitive effects to international service outsourcing.Therefore,industry upgrade needs to foster domestic service outsourcing so as to construct national value chain,substitute international service outsourcing,and attract higher level international ones.Based on the above ideas,the present dissertation analyzed the industry upgrade effects of service outsourcing in the perspective of value chain through the following four sections.The first section,using statistical data,studied the present situation of China's 24 manufactures' service outsourcing and industry upgrade through constructing calculation formula.Empirical analysis shows that integral service undertaking input enjoys a slower upward trend considering substance input.The overall level of China,s international service outsourcing is low,and it varies with different element-intensive manufactures.Domestic service outsourcing level is lower than international service outsourcing level.Besides,although most industries' value chain shows an upward trend,the rising speed of the three industries' value chain is at a relatively low level.In the second part,theoretical propositions were derived from mathematical model,and it was verified with econometric model that domestic and international service outsourcing has an industry upgrade effect.The results show that undertaking domestic service outsourcing can bring significant industry upgrade effect,and no technical inhibition.Undertaking international service outsourcing can also bring industry upgrade effect.However,the greater the gap between contractor and world's cutting-edge technology,the larger the upgrade effect.So when technology gap is large,we can give priority to international service outsourcing.As technology spillover and independent innovation promote technology level,the technology gap becomes constantly narrowed,and domestic service outsourcing becomes more beneficial for industry upgrade.Therefore,the industry upgrade effect of international service outsourcing relies on independent innovation when the technology gap is small and on technology spillover when the gap is large.However,both technology spillover and independent innovation effects help domestic service outsourcing to realize industry upgrade,regardless of the technology gap.The third section analyzed the relationship between international and domestic service outsourcings with theoretical model.Through equilibrium analysis of three game processes,it was found that international and domestic service outsourcings are alternative,and they are both influenced by relevant exogenous factors.After the theoretical theorem was achieved,the thesis constructed a structural equation model,and empirically analyzed the substitution relation between the two kinds of service outsourcings as well as their influential factors.The empirical analysis shows that they do be alternative to each other.In the last section,the thesis proposed two policy recommendations from the perspective of value chain to develop service outsourcing.First,the development of international service outsourcing should also be laid emphasis on,such as to selectively undertake international service outsourcing,gradually improve the level and ability of developed regions to undertake high-end international service outsourcing,and thus construct internal value chain.Second,domestic service outsourcing should be promoted from the perspective of domestic value chain,such as to perfect market mechanism,improve cooperation mechanism,regionalize industrial policy related to domestic service outsourcing,industrialize regional policy,give tax preference to domestic service outsourcing,construct domestic service outsourcing base,take local government supportive measures,give play to central regions' bridge role,and increase support to central and Western regions.