Study On The Comparative Of Offshore Outsourcing Of Service Between China And India

With the reinforcement of the economic globalization and the strategic adjustment of the multinational companies, the international division of labor has developed from Inter-industry and intra-industry of labor to further deepen the division within the product, which greatly promoted the rise and development of offshore outsourcing. To develop offshore outsourcing is conducive to optimize the industrial structure of the host country and change the trade growth mode. It is important to establish environment-friendly and resource-intensive economy. As the largest developing country, facing with important opportunities for outsourcing services, China has to give full play to its advantages, actively undertake service outsourcing, promote China's service industry leaps and bounds, upgrade industrial structure,narrow the gap with the advanced international, and enhance China services industry internationally competitive. How to seize the present opportunity of offshore outsourcing era to promote sustainable development of China's economy has a significant practical issue. In recent years, China being undertaken offshore service outsourcing has been a dramatic development, however, compared with India, there are still relatively insufficient. Therefore, by the comparative study of Indian and China outsourcing, we try to find out the reasons for the differences, so as to provide reference for China that promotes to undertake the development of offshore outsourcing.In this paper, on the basis of the theory reviewed, China and India's offshore outsourcing services as the research object from the macro level and micro level, are summed up the impact of the development of the offshore outsourcing of factors. Then, on the analysis of China and India being undertaken the development status of offshore outsourcing, we research on the reason of China and India being undertaken offshore outsourcing. After that, the use of quantitative methods, namely China and India's outsourcing on the scale and the factors to undertake regression analysis and find that the empirical results of the comparison:at the macro level, service sector development is the most important development factors on outsourcing services of India and China, but a deeper impact on India; market size, the information infrastructure in China and India also have significant effects, but market size and the information infrastructure have a greater impact for China. At the micro level, the cost of skilled labor, skilled labor and the efficiency of scale and service enterprises have a significant impact on China and India. Among them, the technical labor costs and service companies have a greater impact on India, and China is less affected.Finally, we provide proposals that how to promote our country at this stage to undertake offshore outsourcing.