Undertaking Service Outsourcing

Under the background of economic globalization, Multinational Corporations'refocusing strategy and their global value chain deepened global specialization and created a new model of specialization, giving birth to intra-product specialization. With global industry upgrade to service, international outsourcing, as an important way for service offshoring now is representing a new trend for modernization and globalization of service industry. According to the forecast of the world's high tech forecasting company Gartner Inc., in the following decades, the world's service outsourcing market will sharply grow with annual 8.2% growth rate. Facing the global industry shifting to service, China should draw on its own strength and accept more service outsourcing transaction for changing"made in China"to"serve in China".From the perspective of intra-product specialization, this paper explained the appearance of outsourcing and the shifting to service from manufacture and continues an all-around analysis for service outsourcing transactions in China based on analysis for service outsourcing's current situation and future trend of both home and abroad. The necessity for service outsourcing transaction in China has been first discussed as China is facing new economic situation.Then the specialty as well as the strength and weakness of China for service outsourcing transactions are discussed through the realistic analysis and econometric model analysis. After getting clear view on Chinese service outsourcing, the paper gave some proposals for Chinese service outsourcing development based on China own situation.