The Study Of China’s Service Outsourcing Undertaking Based On The International Value Chain

In2006, China’s Ministry of Commerce launched the " Qian-bai-shi" project to stimulate the development of outsourcing industry; in2009, the State Council approved to establish20cities (such as Beijing Tianjing Shanghai and so on) as the demonstration city of China service outsourcing; July28,2010, the Ministry of Finance, the State Administration of Taxation, the Ministry of Commerce jointly issued the provision "The Notice of Offshore Service Outsourcing Exempting from Business Tax in the Demonstration Cities", based on this provision, from July1,2010to December31,2013, the enterprises engaged in offshore service outsourcing business in the service outsourcing demonstration cities would be exempted from business tax. All of these measures had effectively stimulated China’s outsourcing industry developping rapidly,which not only reflected the strength of China’s economic, but also promoted the transformation of China’s economic development mode.However, with the further developpment of China’s service outsourcing industry, many problems exposed gradually. A prominent problem need to be solved was "The Comparative AdvantageTrap" which the China’s service outsourcing industry faces.Compared with India, Israel and Ireland’s service outsourcing industry system, enterprises in our country were mostly on the low-end of the global value chain, the added value of products was much lower and the labor cost was relatively higher. At present, the primarily form of service outsourcing in the world was the Information Technology Outsourcing (ITO), therefore China’s service outsourcing enterprises mostly undertaked the ITO, the Business Process Outsourcing (BPO) and the Knowledge Process Outsourcing (KPO) which having highly added value were rarely involved, but, after a long-time development, India,Israel and Ireland’service outsourcing industry was too much to undertake much Business In a Large-scale, so in the BPO and KPO business undertaking, they had an eye-catching performance. From the view of value chain, the paper describs this fact that China’s service outsourcing industry is at the lower end in the global value chain, at the same time,it summarizes the reasons and possible harm,which we might face in someday.There are five chapters in this paperThe first chapter makes clear the object, the background and significance of study.The second chapter mainly introduces the value chain, the theory of International Division of Labor and the "Comparative Advantage Trap" and other related concepts, at the end, it Summaries and Comments to the theory of China’s service outsourcing industry in the global value chain.The third chapter focses on the present situation of China’s service outsourcing industry, it explains that China service outsourcing industry faces a major dilemma through the method of quantitative analysis.The fourth chapter explains China’s service outsourcing industry is facing " Comparative Advantage Trap "from the two sides of internal factors and external factors.In the world, we have to face the intense international competition, while we are dealing with all kinds of trade barriers between to the developed countries. At home, there are a series of defects and shortcomings in the industry of service outsourcing which aggravated " Comparative Advantage Trap"The fifth chapter puts forward on relevant countermeasures for the " comparative advantage trap" and Problems metioned in the above chapters.