Study On Dalian's Undertaking Capability Of Offshore Service Outsourcing

With the fast pace of informatization and economic globalization, service outsourcing has gradually become a universal phenomenon around the world. Facing the fierce competition, increasingly more multinational corporations choose service outsourcing as an effective strategy to enhance core competitiveness. Offshore service outsourcing is viewed as a practice of hiring an external organization to perform some business functions in a country other than the one where the services are actually developed, in which sense two organizations usually have contracts involving exchange of service and payments. Through service outsourcing, the party awarding contract can transfer its non core business to other countries, usually developing countries with low cost in human resources, make use of global resources and then enhance the corporate core competitiveness. As to developing countries, undertaking outsourcing business helps them to absorb advanced technology, accelerate the pace of local economic growth and optimize the industrial structure. Therefore, many developing countries consider undertaking outsourcing business as an effective strategy for boosting economic growth. As one of the first batch of exemplary cities in developing service outsourcing business, Dalian is characterized as "government-assist & privately run" software parks. On the base of good investment environment and well infrastructure, the scale of outsourcing business is enlarging continually while the local enterprises'undertaking capability is strengthening. Now, Dalian has already been one of the leading cities in outsourcing industry. However, compared with other cities like Bangalore in India, there are many shortcomings for Dalian to have further development in this industry. Therefore, it is of great significance to have research on service outsourcing business and Dalian's undertaking capability.Taking service outsourcing as the study object, this paper will have analysis on Dalian's current situation of undertaking capability, based on which the paper will put forward reasonable suggestions. There are six chapters in this paper. The introduction part illustrates the background, the significance and the literature review of the topic. The second chapter mainly introduces the basic concept, the types, the motivations and the principal trends of service outsourcing. Although a precise definition of service outsourcing has yet to be agreed upon,it is usually viewed ad involving the contraction out of a busioness function which is actually finished in-house to an external contractor. The party awarding contracts can make use of contractors'resources with lower cost, in which way to cut corporate cost and enhance competitiveness. The contractors can also have benefits in undertaking outsourcing business:to gain profit and to learn international advanced technology. The third chapter illustrates the situations of worldwide principal undertaking centers. This chapter firstly analyzes the universal influence factors of undertaking capability, closely after which this chapter analyzes the advantages and disadvantages for India and Ireland to develop outsourcing business. The fourth chapter mainly has researches on situations in Dalian:the current situation; the "government-assist & privately-run" model, the SWOT analysis and SWOT Matrix analysis. Based on the analysis, the fifth chapter puts forward reasonable suggestions. It needs cooperation work of the government, the enterprises and social forces. The sixth chapter is the conclusion part. There is a good platform and great space for Dalian to develop outsourcing industry. Every force including the government, undertaking enterprises and the society should make endeavors in order to have further progress in this field.