Rearch On The Competitive Forces And Strategies In Financial Service Outsourcing Of China

Deloitte Consulting Co. showed that, there was only 10% of the financial instit-utions outsourcing their business to the other countries in 2001. While the proportion had reached 75%. India is the most successful country in running the financial service outsourcing. While the industry of Indian financial outsourcing became more mature, the global financial institution pay much attention to China. Both the increasing development of Chinese economy and the process revolution of financial industry brings on much domestic demand. But the local financial corporations have less advantages in operation and scale than India corporations.This paper will study the competition position and strategy of our country in financial service outsourcing. Firstly, it analyze the status quo and trend of international and Chinese financial service outsourcing. And we can learn the disadvantages and challenges of Chinese local financial service outsourcing. We cannot just follow Indian path to improve our global competition position, cause Chinese local financial service outsourcing business is mainly from China. We should have the overall picture of our financial outsourcing industry. So the paper analyzes the overall competition position of 16 cities in developing financial service outsourcing, and ranks them. Then it uses the RCA index and the case study of Chinese local company CDG and Tata Consulting Service(TCS) company, vividly give a overall picture about the differences and reasons of Chinese and Indian financial outsourcing companies and industries.Finally it gives the corresponding strategies from the prospective of Chinese government and companies, such as the perfect legal environment; the government should plan the building of financial service parks and cities; giving birth to more related human resources; encouraging the Chinese financial institutions outsource more business and hunting for more in international market; building a association like Indian NASSCOM. Chinese local financial service outsourcing companies should enlarge their business schedule and improve their core competition through merger or acquisition.The innovation in this paper: using the statistic method-----factor analysis; applying the RCA analysis and case study to measure the domestic and international competition position of Chinese financial service outsourcing business. And it means too much in improving our industry structure.