Research On Improving Competitiveness Of China's Service Industry By Undertaking International Service Outsourcing

With the rapid development of Globalization, Specialization and Information Technology, the environment where multinational corporations survive and compete has been dramatically changed. International service outsourcing has been the strategic option of multinational corporations to increase their core competence. International service outsourcing is a new and important form of service industry transfer and service trade. And it would bring some positive effects to the economic development of both outsourcing and undertaking countries. Particularly it can promote the development of undertaking countries' service industry, while India is a successful example. As far as China, we urgently need develop our service industry, especially modern service industry to improve the competitiveness of China's service industry, and change the way of economic development. So it is very important to do the research on international service outsourcing activities.Compared with developed countries, the overall size of China's service industry is smaller. and its levels of development is lower. Its internal structure is irrational too. For example, China's service trade is in deficit in the long-term, export structure is irrational, and the international market share, TC index and RCA index are relatively low, even compared with India. So, it is obviously that, the competitiveness of China's service industry is relatively weak. Therefor, this paper draw that we can develop China's service industry, improve the competitiveness of China's service industry and the overall economic strength by undertaking international service outsourcing actively.In the paper, both theoretical research and applied research are been adopted. Firstly, the paper expounded the connotation and theoretical foundation of outsourcing and the competitiveness of the industry. Based on this understanding, the paper thoroughly analyzed international service outsourcing's emergence, cause of development, status characters, trends and influence, especially the influence on the upgrade of the inner structure of service industry in undertaking countries.Then, there is a study on the status of competitiveness of China's service industry, and a comparative analysis with India. After that, we discuss the factors which influence the level of competitiveness of China's service industry. In the fifth Chapter, taking India as an example, we thoroughly analyse the influence on the competitiveness of India's service Industry by undertaking international service outsourcing. At last, we analyse the Strengths, Weaknesses, Opportunities, and Threats of China's undertaking international service outsourcing, and then some countermeasures about undertaking service outsourcing have been proposed for the improvement of our international competitiveness of service industries. Such as, extending the manufacturing industry chain to develop international service outsourcing, broadening the market access of foreign service outsourcing, improving the hardware and software environment to attract international investment, establishing short-term promotion and guide policies for international service outsourcing's development in China, connecting technology introduction with our independent innovation, and exploiting European and American markets steadily.In this paper, there are some innovative points as follows: 1. Researching the relationship in-depth between international service outsourcing and the development of China's modern service industry or the improvement of the international competitiveness of service industry. 2. Analyzing the international competitiveness conditions of China's service industry in the 21st century, comparing with India. 3. Using the contribution index of outsourcing service exports to observe the influence on the competitiveness of India's service industry by undertaking international service outsourcing. 4. Proving that it is possible to improve the competitiveness of China's service industry by undertaking international service outsourcing.