Analysis Of The Economics Of Business Process Outsourcing

Recently a global trend of outsourcing has made a profound impact on the global production mode and the company organizations. Firstly, this paper describes the background of the trend of outsourcing. Secondly, this paper discusses the revenue and costs under the theory of intra-product specialization and the theory of the company as a strategic combination. Thirdly, the most important Determining factor for company making an outsourcing decision is considered to be Product standardization. Then this paper discusses the determining factors of product standardization. Fourthly this paper discusses how the outsourcing developed in the general conditions, and then explains how company organizations changed by the outsourcing and the evolution of the production network. Finally, this paper gets some Conclusions and gives some advices for the future development of outsourcing in China, especially on the areas of undertaking international service outsourcing and processing trade.