The Analysis On How International Service Outsourcing Affects Economic Growth Of Undertaking Countries

Nowadays, international service outsourcing is emerging vigorously in the world.It has obvious industrial characteristics, so it can especially affect the economicgrowth of the undertaking countries. The development of international serviceoutsourcing industry needs a great deal of white-collar practitioners with highcapabilities, therefore it can promote the employment rate of the undertakingcountries and the investment of the essential factors of labor force. Concerning theinfluence of the material capital investment, international service outsourcing canincrease the accumulation of the social material capital of undertaking countries. Themassive investment of human capital will form the human capital accumulation of theundertaking countries. In addition, international service outsourcing has the highertechnical content and the stronger knowledge spillover effect; it will produce activeinfluence to the technology advancement of the undertaking countries. As for thenatural resource, international service outsourcing industry needs not consume anynatural resource; its output mainly comes from the labor force investment. Thesubstitution function of labor and capital investment replacing natural resource willgrow further in the process of the economic growth. Meanwhile, international serviceoutsourcing will actively and positively affect the system environment of the undertaking countries. However if the economic growth of the undertaking countriesrelies too much on service outsourcing, there can be excessive technical introductionand foreign capital introduction. The undertaking countries will neglect technologystudy and independent innovation and therefore it will lead to the risk of "industrialhollowing".Generally speaking, compared with the traditional production pattern, especiallywith the manufacturing outsourcing, international service outsourcing industry cansave the undertaking countries' natural resources, protect environment and disposeelements of production more effectively. That is the reason that it profoundly affectsthe quality and the efficiency of the economic growth of the undertaking countries.Thus China should take advantage of the opportunity, formulate correspondingpolicies and transform development mentality to realize the sustainable coordinatedeconomic development.