The Empirical Research Of Location Choice For Service Outsourcing

Service outsourcing is the comprehensive resolve project of special service operation which the service provider offered to its clients. It is a service mode to help its clients to reduce their cost of that portion, so that they can focus their energy on their advantage capability. With the characters such as high added value,low resource consume,little environment pollution, the service outsourcing's increment extent is as 6-20 times as manufacturing's and cost just 20% resources of manufacturing's according to the statistics. The market of global service outsourcing increased 20% annual since 1990s till now. Developing service outsourcing has a significant meaning to improve the competitive power of service industry and accelerate the revolution of industry structure. As the dynamic economic subject in the world, China has indicates its relative superiority in the development of the service outsourcing trade which based on the steady politic environment,perfect legal system structure and basic establishment structure,vast market potential and a huge number of low paid skilled labours.This paper tried to find the location-factors which influence the service outsourcing senders' choice of its contractor. By combining the domestic and overseas research methods of the competitive power of service outsourcing, applying the system theory,economics,statistics,the classic theory of international trade and statistic software, adopting qualitative and quantificational research techniques, this paper analyses and abstracts the factors which influence the offer's location choice. Then based on these factors, take Hubei province for example, testified the theory through mathematic model. In another way, construct a service outsourcing index system through part principle of the analytic hierarchy process.Based on the theory and practical research, the author then gave a micro-analysis of Hubei province. According to the analysis, the influence of labour cost is the deepest among others. The bigger the market scale is, the more powerful service outsourcing carrying ability is, so does the opening extent of trade. However, the relationship between the market dimension and opening extent of trade is that when the market expands to a certain degree, the influence on the opening of trade is decreasing. At last, the paper gave policy advices to our country's development of service outsourcing according to the result of demonstration analysis.