Analysis On The Economic Effects Of China's Undertaking Service Outsourcing

With the development of globalization and information of technology, the service outsourcing has become the strategic option of many transnational corporations to increase core competence. It also leads new shift of industries around the world. The host-countries of service outsourcing are mainly developed countries, while the undertaking economies are mainly emerging developing and developed countries. The outsourcing of service industry has far-reaching implications on the two types of economies, and ultimately achieves the rapid development of services all over the world, especially the modern service industry.Being the biggest developing country, the development of China's service industry is relatively stagnant; especially the knowledge-intensive and capital-intensive modern services which have a relatively large gap comparing with those of developed countries and become important restrict factors of the coordinated development national economy. Faced with the important opportunity of the international outsourcing of service industry, China needs to give full play to its own advantage and actively undertake the international transfer of service industry, and promote China's services to make a great-leap-forward development and achieve the upgrading of the industrial structure.With the massive services outsourcing transferring to China, the government should take advantage of the opportunities of services outsourcing to enter the international market and share the international division and competition. Forming a group of service multinational corporations full of competitive power that can help China narrow the gap with developed countries and enhance the international competitiveness of its service industry.Taking the international services outsourcing as its research objective, this dissertation uses the combination method of theoretical and empirical analyses to make a systematic research on the effects, and then it proposes the relevant policies and recommendations.This dissertation is divided into six chapters. The first chapter is the introduction which introduces the research background and research significance of the service outsourcing and shows the research contents and ideas, and then put forwards the research methods and the innovations. The second chapter recalls the classical theories of service outsourcing and reviews the relative literatures about it, which provide theoretical support for the analysis of the service outsourcing. The third chapter analyzes the current situation of the service outsourcing, also about china. Chapter four analyzes the economic effects of the service outsourcing. The service outsourcing has had an important influence on the host countries. It will mainly affect four aspects of a country: trade, employment, technology and industrial structure, also some other aspects, such as national competition and national security. Then this dissertation makes empirical analyses on the economic effect of outsourcing, using China's real data. Chapter six puts forwards the corresponding policies and proposals according to the service outsourcing and the development of China's service industry. Finally, this dissertation comes to the conclusions and gives a further prospect that China should the important opportunities of services outsourcing to achieve leapfrog development of service industry.