Analysis Of Beijing’s Service Outsourcing Development Pattern And Policy Suggestions

With a new round of world industrial restructing and global economic integration,outsourcing of service has become an important part of the international service and adominant force in globalization. The fast development of outsourcing of service hastremendous impact on host-countries as well as undertaking economies. Outsourcingof service is becoming the focus of attention all over the world. Grasping theopportunity of the service outsourcing development will promote the development ofmodern service and manufacturing sector, optimize Beijing’s industrial structure andimprove the position of international trade of Beijing. Comparing to India and Ireland,the development of Beijing’s international service outsourcing starts late and berelatively backward. How to deploy her advantages and capture the oppotunity ofinternational service transfer is an important issue to be studied now.The thesis links the theory with practice and combines qualitative andquantitative research together. On the basis of international service oursourcingtheories, this paper starts with the overall market profile and main mode ofundertaking countries, then comes to the advantages and disadvantages of serviceoutsourcing industry of Beijing. After that, the paper elaborates on some factors andbuilds up a multiple regression model to empirically study these factors. Consideringthe results of empirical analysis, the paper proposes a developing pattern forinternational service outsourcing of Beijing as well as certain policy suggestions.The empirical research indicates that the development of Beijing’s internationalservice outsourcing industry is influenced by factors including service trade openness,labor cost, human capital availability and infrastructure. However, R&D is not thatimportant. The regress results show that service trade openness is the primary factor,and others play significant roles too. Based on empirical analysis and exemplarypatterns at home and abroad, the thesis reaches a conclusion that governmentparticipatory, low-cost, R&D, comprehensive advantage compound pattern will beBeijing’s service outsourcing development pattern.