The Research On The Development Of Offshore Service Outsourcing Of China And Model Cities

China’s economic developed rapidly since the economic reform. With the export-oriented economy developed first, the processing trade grows quickly, making China known as "the world factory". And today, the tertiary trade plays little part in the country’s economy. Meanwhile, though the trade surplus always exists, the service trade develops slowly. The unsustainable high-energy consumption and high-pollution situation needs to be improved. Therefore, under the circumstances of transition, the traditional goods trade is transforming into service outsourcing industry. In spite of the late starting, the powerful policies and the advantages of human resource keep pushing the service outsourcing industry growing rapidly.Currently, the developing of service outsourcing industry has been transferring from the basic information technology outsourcing to business process outsourcing and knowledge process outsourcing. In the meantime, the global service outsourcing market has fierce competition, consisting of the USA, Europe and Japan as the main outsourcer while developing countries such as India, Ireland and China being the outsourcee. As for China, Japan is our major outsourcer. Ever since Commerce Department issued the policies to enhance the service outsourcing, it develops greatly, especially in the21model cities of Chinese service outsourcing, which play a leading part to other cities. The labor condition, cultural difference, economical condition, policies and accumulated effect play significant role in this developing process. The essay analyzes the general condition of each model cities and selects the influencing factors to use PCA to eliminate the multicollinearity of the factors in order to build up a new index and explain it. In the end, it offers some suggestions to help the service outsourcing industry of the cities to develop smoothly and rapidly.