Shandong Province, Service Outsourcing Development Problems

In the new round of global industrial transfer, service outsourcing has become a new important motivating factor. As the biggest developing country in the world, to develop service outsourcing industry has become China's important means of changing the mode of economic growth and breaking the bottleneck of energy and resources. Shandong Province is China's most populated province and economic province. Facing the rapid development of service outsourcing industry, it is particularly important to consider how to grasp the opportunity, bring its advantages into play and overcome its own deficiencies.Service outsourcing industry in Shandong Province actually started in 2006. According to the number of service outsourcing enterprises, output value and its impact on employment in different periods, service outsourcing industry in Shandong Province has experienced three stages, that is, the embryo stage, the preparation stage and the fast developing stage. In the embryo stage, the service outsourcing enterprises was limited in number, and the government set few policies on service outsourcing; in the preparation stage, the business type of service outsourcing was gradually deepened, market was expanded, and the characteristics of service outsourcing industry in Shandong Province began to appear; in the fast developing stage, the autonomy of the service outsourcing subjects in the province significantly enhanced, the role of the government was evident, and long-term planning from 2010 to 2014 was made for the development of service outsourcing.By applying EVIEWS software, this paper presents performance analysis of service outsourcing in Shandong Province. Through the establishment of models, it also analyzes the employment effect, technology spillover effect and the effect of industrial structure that service outsourcing brings. We can learn that the coefficient of determination is 0.859314, 0.900787 and 0.965843. We can see that the overall degree of fitting of the model is good, and also the coefficient significance test, P-value test and economic significance test proves the significant impact of service outsourcing brings on employment, human capital stock and industry structure. When comparing Shandong Province with Liaoning Province in service outsourcing, as for geographical location, since Liaoning Province is much closer to Japanese and South Korean markets, so service outsourcing enterprises can more easily gain a firm foothold in the markets, and can enter the European and American markets much earlier; as for social and humanity aspects, Shandong Province has an overall advantage in education, but strong local awareness hinders service outsourcing enterprises in Shandong Province to expand their markets. Service outsourcing enterprises in Liaoning Province have more advantages in business, enterprise building, service-outsourcing-zone building, and constellation effect. In the comparison of competitiveness of service outsourcing, there is a good prospect of the demand in Shandong Province; the comparison of economic effect shows that service outsourcing has had great impact on the economy in Liaoning Province, while the impact on Shandong Province, especially on industrial structure, is not yet clear.This paper presents detailed SWOT analysis for the service outsourcing in Shandong Province. From this, we can learn the advantages of superior geographical environment and abundant stock of human capital in Shandong Province. We can also learn its deficiencies resulting from starting late, unreasonable talent structure, and imperfect systems of service outsourcing. The development of service outsourcing industry in Shandong Province must be carried out from two aspects, the optimization of macro-environment and the development of micro subject. The government needs to provide policy environment for the development of service outsourcing and communication platforms for service outsourcing enterprises. The enterprises should strengthen self-construction from expanding its scale and quality certification, etc.