Research On The Innovation Oriented Industry Selection Of Service Outsourcing Industry Of Shanghai

In the latest few years, in order to lower the cost and enhance the competitive force, many international companies and fanicial institutions in the Western developed countries have been transferring their un-core business in the value chain including client service functions mostly to the countries and districts with lower cost, which is regarded a new wave of international service industry transfer in the beginning phase.A lot of practices showed that the development of service outsourcing has its important significance to the capability of independent innovation. This paper discussed the contribution to independent innovation (including technology innovation, service innovation and management innovation) by outsourcing from the view of theory, then it adopted questionnaire survey with correspondence analysis to study the contribution degree of service outsourcing industry on the capability of independent innovation. Through the empirical study it showed that outsourcing improved independent innovation and different outsourcing industry had its impact on different innovation meaning (i.e. technology innovation, service innovation and management innovation). Hence, facing this new trend popular in China, Shanghai, as one of the key hosting places, should take it as a historical opportunity, recognize the relationship between outsourcing and innovation, integrate the current service outsourcing resources, select industry in new standard, and guide them in an innovation oriented way.As a strong relationship was proved between outsourcing and innovation by many countries'development history, such as India and Ireland, this paper was drived by this situation. In the first and second chapters, this paper will begin in the relationship between outsourcing and innovation from theory and practial examples perspective firstly. Secondly, after the research on several countries and districts, a conclusion was brought that the condition of one country or district will impact its outsourcing hosting industries'selection. Thirdly, the domestic competitive analysis. The main conclusion is that there are not too many kinds of industries and not too much development experience. So Shanghai should consider the outsourcing strategy from both condition and future development objective.In the third chapter, this paper will build up the innovation oriented evaluation index system which is consisted by attraction index and feasibility index. Through the cross industry selection, the'two-high'industries will be selected.In the fourth chapter, this paper will give some suggestion on the development strategies and policies. The first step focuses on the three main strategies on the purpose of innovation. The second step is proposing relative policy suggestions according to Shanghai's situation.