Strategic Objectives And The Development Model Of The Development Of Service Outsourcing In China

With further development of economy globalization and wider application of information technologies, the tradability of services is improved and areas of service trade widened. After the globalization of manufacturing industry, the cross-country transfer of services and service outsourcing becomes another hot point in developed countries. Service outsourcing gained much more attention from the governments of both developed and developing countries, and more and more countries want to a member of this segment.Chinese government put great emphasis on service outsourcing, and service outsourcing has been listed in the state "11th five-year plan". With the implement of service outsourcing "Thousand-Hundred and Ten Project", currently, China has chosen 16 cities to be service outsourcing base cities and 4 role model zones. And the local government of each base city also developed some supporting policies for service outsourcing. Service outsourcing is now in full swing on the divine land of China.However, because of the lack of a clear and appropriate strategic goal and partial understanding of service outsourcing, China's main focus in this field now is offshore service outsourcing, especially software outsourcing, which leads to the situation of same-quality competition and base cities fighting for limited resources, the market chaotic and government policies becoming invalid. This may damage the long-term healthy development of China's service outsourcing segment and Chinese economy.Based on a different understanding of the contents and types of service outsourcing, this article analyzed the different economic impacts of service outsourcing on developed and developing countries by using trade theories. Currently, academic world are mainly looking at the positive impacts of service outsourcing, especially offshore service outsourcing on boosting the economic growth of developing countries, and conducted both theoretic and evidence based analysis on this. This article gave a more comprehensive analysis of the "double-edged sword" impacts of service outsourcing on developing countries, and proposed the idea that service outsourcing is not equal to offshore outsourcing and software outsourcing, and service outsourcing has both positive and negative impacts on China's long-term economic development. And the "double-edged impacts" was further verified by using India outsourcing as the study case. After careful analysis of these impacts, especially the widely-recognized "technology spillover effects", this article proposed that " technology spillover effects of service outsourcing are limited, and the value of technology itself is gradually decreasing during the transfer of services from developed countries to generally developed countries and at last to developing countries". On the basis of service outsourcing, this article also analyzed and studied China's special economic situation. Starting from the "Desirability" between service outsourcing and China's economic development, the strategic goal on service outsourcing and a goal-driven model was put forwarded in this article.Different from previous studies which mainly focus on offshore service outsourcing, this article provided a more comprehensive analysis of service outsourcing from different perspectives, analyzed the different functions and impacts of offshore outsourcing and onshore outsourcing on the development of our economy, proposed that onshore outsourcing can "neutralize" the "negative impacts" of offshore outsourcing, and should be equally emphasized and developed. China should establish a strategic goal of service outsourcing based on China's own economic needs and situations, and should not copy India's way of fast development of "offshore outsourcing".