China's Service Outsourcing Industry Competitiveness Study

With rapid globalization and industrial restructuring, trade in service experienced a rapid development trade in services. Communication, computer and information service, accounting, consulting and other emerging service industries grew rapidly. At the same time, along with strategic adjustment of transnational corporations as well as the rapid development of information technology, business process outsourcing (BPO) and information technology outsourcing (ITO) are becoming more and more important on trade in services. In the current financial crisis, plenty of multinational companies will outsource non-core business to reduce costs and enhance competitiveness, which will bring more development opportunities to Chinese companies of undertaking service outsourcing business. China has many advantages in the development of service outsourcing. Recently, the State Council approved 20 cities including Beijing and Shanghai for the China service outsourcing demonstration cities, and implements a series measures to encourage and support China's service outsourcing industry.Undertaking outsourcing services can increase the proportion in GDP of service industry, promote the industrial structure, save energy consumption, reduce environmental pollution, expand service exports and increase export earnings of trade in service, generate numerous employment opportunities, improve wage income and skills of employees, which can bring us enormous economic and social development interests. At present, the government's priority is to improve the investment environment in undertaking outsourcing service, improve its quality of public services, and speed up the development of outsourcing services industry. Based on the investigation and research on each model city's competitiveness of service outsourcing industry, I find the advantages and disadvantages of service outsourcing industry development in different cities. I also sort out these advantages and disadvantages, and then explore a reasonable path which is conducive to the development of service outsourcing industry. At the same time, I also try to make the negative factors improved or corrected. Through the study of services outsourcing industry competitiveness, we try to help guide and encourage the model cities, and make the outsourcing service promote a greater scope in China.