Dose Demand From Oversea Impel The Development Of Domestic Software Outsourcing Service Industry?

Outsourcing, as a commercial strategic choice, has been accepted by most of companies in the world. The earliest user of outsourcing services are transnational corporations. Some transnational corporations choose to outsource some non-profit supportive activities in order to reduce costs and focus on core business. Especially, with the maturity of information technology, many large transnational corporations send lots of low value-added work to developing countries. This trend makes outsourcing service, just like manufacturing outsourcing, become a part of international trade and a symbol of participating in international division of labor positively for a country. In recent years, China has begun to strive for outsourcing service indents actively and outsourcing service industry also get a rapid development in China.Outsourcing service originated from the needs of transnational corporations to reduce costs. Therefore, when the researchers discuss outsourcing service motivation, they tend to analyze from the perspective of international trade. They argue that the needs of transnational companies promote the development of outsourcing service industry in China. For most of major contract countries, this view is reasonable to explain the development of outsourcing industry. Because the domestic market of general contract countries are finite. Its domestic demand is not big enough to maintain the growth of outsourcing service industry. If a country has comparative advantage on the productivity of outsourcing service industry, it should export service activity to obtain overseas income. After thirty years of reform and opening up, China of which GDP reach to 4 trillion became the second largest economy of the world there are also a large number of companies outsourcing their business needs. Therefore, a lot of domestic companies have the demand of outsourcing their low-level work. The author supposes the domestic software outsourcing industry may originate from the demand of international market. However, domestic demand may play a significant role in the course of its development and growth. How much does domestic demand impel the development of domestic software outsourcing industry? Does this demand become the leading force of development of domestic software outsourcing industry? And where is this demand from? In order to answer these questions. I collected 116 listed companies from mainland China, Hong Kong and New York stock market as the sample. Through counting their total income, domestic income and overseas income from 2003 to 2010, the author wanted to know whether the development of domestic software outsourcing service industry is promoted by domestic demand or oversea demand. Then the author researched the geographical distribution and industry distribution about these 116 companies' clients in order to realize where the needs come from.This study is divided into six chapters. The first part is introduction, starting from core question of this paper, research methods and innovative points; and designing the structure of this article. In the second chapter, I defined the concepts used in this article and reviewed research perspectives, methods, and conclusion about outsourcing motivation. In the third chapter, I set up a framework for analysis with classical theories, subdivided the study issue into 2 parts and determined the standards and scope of collecting data. In the forth chapter, I made a count about the proportion of domestic income and international income of domestic outsourcing service listed corporations in order to locate the main source of income. In the fifth chapter, though statistics of geographical distribution and industry distribution about contract awarding corporations, I gave a further clarify about the main source of income and explained the phenomenon. In the sixth chapter, I summarized conclusions and policy suggestions about this study and pointed out the inadequacies and follow research direction. In this study, I obtained this final conclusion:considering from the data of China's listed software outsourcing companies, domestic demand is the main driving force of the development of domestic software outsourcing industry. This conclusion is different from the traditional mainstream view of outsourcing driving factors and we also need to expand sample and select a new data for further confirmation. If we can do more validation, we can give enlightenment to enterprises, scholars and the government about the development of software outsourcing service industry.