Study On The International Competitiveness Of Absorbing Outsourcing In China

Recently, with the further development of international division and economic globalization, a company cannot and is not necessary to finish all the steps of the products or service all by itself. It only needs to keep its core business while outsourcing the non-core business to others. Thus, outsourcing becomes an international trend. International outsourcing begins with the manufacturing outsourcing and mainly refers to the processing trade. Developed countries focus on core business while developing countries do the non-core business. However, with the development of globalization and change of international division, manufacturing outsourcing can never meet the requirement of the world economy. Thus, service outsourcing emerges. Compare with manufacturing outsourcing, service outsourcing has its own characters and advantages and is becoming a new trend of international economy.China is a large outsourcing country. Manufacturing outsourcing develops well while service outsourcing is only on the horizon. Outsourcing is with great importance to China. Compared to some countries and areas in Asia, manufacturing outsourcing of China has its own advantages and disadvantages. Compared to such countries and areas as India, software and service outsourcing of China has its own advantages and disadvantages. This paper uses a series of competitiveness indexes to observe both manufacturing and service outsourcing of China. Then, it analyzes comparative advantages of China comparing with relevant countries and areas. In addition, it uses SWOT model to analyze both manufacturing and service outsourcing of China and gives out relevant measures and suggestions.The result shows a certain competitiveness of the manufacturing outsourcing in China. However, the manufacturing outsourcing in China is mainly processing trade feathering low added value. The service outsourcing begins late but highly valued by the government. Due to its own advantages, service outsourcing shows great potential. Nowadays, the following measures should be followed: continue to make use of the advantages of labor-intensive industries in China to accelerate the development of capital-intensive industries, develop service outsourcing based on the manufacturing industries, make use of its own advantages to explore European and American markets, etc.