The Research On The Employment Effect Of China Undertaking The Service Outsourcing

With the deepening of economic globalization and sustaining development ofinformation technology industry, along with the international capital transfer to the field oftrade in services, the service outsourcing has become an inevitable trend of today’s newround of global industrial revolution and the transfer. With the characteristics of the highlyprocessing information technology, high added value, attracting more high-quality labor,undertaking the service outsourcing not only can optimize the trade structure, acceleratethe transformation of economic development, but also improve China’s employmentstructure, so undertaking the service outsourcing has an important significance to ease theChina’s employment pressures.This paper is divided into six chapters. The first chapter is the Introduction. At thebeginning, this part introduces the background and signification of undertaking the serviceoutsourcing to the employment; Then, we review documents and papers at home andabroad about the employment effect of undertaking the service outsourcing, from the twoaspects of the service outsourcing country and the undertaking country. And this partsets up a theoretical analysis platform for the total research; Thirdly, the research methods,innovations and inadequacies of the article are proposed in this part; At last, this part buildsa research framework.The second chapter is about the outline of the service outsourcing, divided into twoparts. The first part is mainly about the definition and classification of the serviceoutsourcing. Until now, there is no a uniform definition about the service outsourcing, butin this article, we mainly use the definition and classification of the service outsourcingmade by the China’s Service Outsourcing Development Report. The second part analyzesthe service outsourcing development of the global and China, mainly from the two aspects, one is the overview development of service outsourcing, the other is the market structure,including the service outsourcing country, the undertaking country, and the types of serviceoutsourcing.The third chapter is the theory and mechanism analysis of employment effect ofundertaking the service outsourcing. At the beginning, it is the mechanism analysis ofundertaking the service outsourcing to the employment effect. Firstly, the part analyzes thetheoretical foundation of undertaking the service outsourcing to the employment effect,then, on the base of the theoretical foundation, the article builds a mechanism to researchthe employment effect of undertaking the service outsourcing from the direct aspect andthe indirect aspect. Following, based on the Cobb-Douglas function, the article puts thedirect and the indirect employment effect into a theoretical model to analyze.Based on the above theoretical model, the article uses the China’s historical data totest the employment effect by the empirical study in the forth chapter. Firstly, from thestatistical point of view, the article makes a statistical trend analysis between the serviceoutsourcing amount and the employment population. The result shows that the growthtrend of both is consistent, that is the employment number is constantly increasing alongwith the amount of China undertaking the service outsourcing increasing. Secondly, selectthe China’s historical data to verify the employment effect of undertaking the serviceoutsourcing by the empirical analysis. The empirical results show that undertaking theservice outsourcing has a positive total effect on the China’s employment, but thecontribution of undertaking the service outsourcing to the employment is small, mainlybecause the scale of China undertaking the service outsourcing is relatively small, and thevalue chain level is low.The article makes a comparative analysis to the employment effect from theinterregional and international view in the fifth chapter. According to the location, thearticle divides the China’s21service outsourcing demonstration cities into four areas--thenorthern, the eastern, the southern, the central and western. The result of comparing thefour areas development of the service outsourcing industry shows that the development ofthe central and western area lags far behind the other three areas. Then, the second part compares the employment effect of undertaking the service outsourcing from theinterregional and international view, the results show that the ability of the central andwestern areas to absorb employment is more obvious than the other three areas because ofthe cheaper labor costs, but lower than India’s ability to absorb employment.The sixth Chapter proposes the policy recommendations to promote the employmenteffect and the development of undertaking the service outsourcing after summarizing theconclusions of above chapters. Firstly, we should increase the scale of undertaking theservice outsourcing to ease the social employment pressure; Secondly, change the serviceoutsourcing level of China undertaking, so as to develop the high-added serviceoutsourcing in order to promote the employment; At last, put more support efforts for thedevelopment of the service outsourcing industry in the central and western areas in order tonarrow the gap between them and the northern, eastern and southern areas.