International Competitiveness Of China And India It Outsourcing Is A Comparative Study

As a new round of global industry shift wave arrives,the multinational investment in service speeds up,and a new industrial structural adjustment rises all over the world.Of which,service outsourcing is the important content of structure adjustment.Due to the preferential policy and human capital advantage in service outsourcing,India has both become the power of the software industry globally and formed the international software outsourcing center.In the course of development,it has gained enormous economic interests.Due to the service outsourcing follows the principle of comparative advantage,and it has this advantage in China.In the current financial crisis hit,more and more multinational companies and financial institutions give more outsourcing to low-cost countries and regions.In which,it provides a rare opportunity for China.In this article,it summarizes the related theory of IT outsourcing services at home and abroad,and compares both the present situation of the development of IT industry and the present situation of IT outsourcing services between the two countries.Then it compares IT service outsourcing competition between the two countries.It also quantitatively analysis the IT outsourcing service with applying the Industrial environmental competitiveness,the Trade Comparative Indicator(TCI),and the Revealed Comparative Advantage(RCA) in IT outsourcing.It concludes that,India, India's IT service outsourcing industry is stronger than China and Chins has also its own advantages.This article addresses these questions from these sides as follows:Outsourcing policy environment(It includes Fiscal policy,the intellectual property rights protection, software park construction and so on),the different in software enterprises between the two countries,the different in human resources,and the differences of the outsourcing model.Based on the above analysis,the following policy suggestions for China to develop its own outsourcing industry are put forward:(1) The government should formulate the preferential tax and subsidies for enterprises engaged in ITO;(2) Both governments and enterprises should strengthen the work of intellectual property protection;(3) Government should provide financing support for ITO enterprise;(4) By establishing software parks,Government should provide service outsourcing industry with preferential trade and investment environment;(5) Making ITO enterprises bigger and stronger,the economies of scale can be brought into play;(6) To establish talent cultivation system to promote the rapid development of IT services outsourcing industry;(7) To establish service outsourcing model Suitable for itself.