Optimal Transnational Operating Pattern Of Software Enterprise: Offshore Outsourcing, Onshore Outsourcing And FDI

The recent emerging transnational software outsourcing could be traced back to 1950s, and it was not until the late period of 1990s that outsourcing experienced the high rocketing development. The continued progress of the economic globalization, technical progress, the gradual refinement of social division and the macroeconomic policy were all believed to be beneficial to the flourish of outsourcing trend. Yet the research efforts towards service-outsourcing were far from satisfaction as compared to the existing discussion on production-outsourcing.According to the industry equilibrium model of Grossman and Helpman between offshore and FDI, this thesis extends the industry equilibrium model between offshore and FDI to the industry equilibrium model among offshore, domestic outsourcing and FDI through introducing the business model of the domestic outsourcing. Therefore, we can establish a theoretical model of the business model about the choice of transnational software enterprise. According to the analysis of the theoretical model of the transnational business model, the software enterprise will choose a business model among offshore, domestic outsourcing and FDI, which makes the enterprise obtain the maximized profit, through the choice of the variable of the technology gap of the software's characteristic space.