Analysis On Competitiveness Of Software And Service Outsourcing Industry In Dalian

With the great development of globalization and continuous popularity of information technology, great opportunities have been provided in the transformation from manufacturing to service in the worldwide industry. Software and service outsourcing has become a new trend of international industrial upgrading. Now China is in the transformation from the center of world’s manufacturer to the center of global service. Therefore, accelerating the development of software and service outsourcing is helpful to promote the success of Chinese industries transformation.Service outsourcing is a kind of service based on cheap labor force, whose aim is to lower the cost, improve the efficiency and then enhance the competitiveness of enterprise by outsourcing non-core business. On one hand, the demand for labor by service outsourcing can alleviate employment pressure and create more posts; on the other hand, as service trade, service outsourcing can enhance export level and optimize export structure to make our service as well as merchandise trade develop coordinately. Therefore, the development of service outsourcing in China is of great significance in enhancing the competitiveness of enterprises and promoting the economic development.The latest five-year plan for2011to2015points, developing the service industry vigorously such as software and service outsourcing, finance and logistics is one way to revitalize the Northeast China and other old industrial bases. Dalian, as one of the first’China service outsourcing demonstration city’and one of the three service outsourcing cities--Dalian, Daqing and Haerbin in Northeast China, its software and service outsourcing is of vital significance in achieving the goal illustrated in Five-year plan. Therefore, in this paper, Dalian software and service outsourcing is the main study object. In addition, Dalian is called" Bangalore in China" in the best-seller book "The World is Flat", and referred in "Opinion on accelerating the software and service outsourcing industry development by the Dalian municipal party committee, Dalian municipal people’s government", the development goal of Dalian is to be global software and service outsourcing industrial cluster as Bangalore, India by2018. Therefore, compared with Bangalore-the imitation city of Dalian, this paper analyses the competitiveness of software and service outsourcing industry in both cities.This article takes Porter’s "Diamond Model" as theoretical basis. Due to the particularity of software and service outsourcing industry, we make some improvements on "Diamond Model", and then define the affecting factors to production factors, demand conditions, relative industry support, enterprise strategy, function of government and opportunity. These six influencing factors mentioned before are defined further-production factors consist of environment, human resources and infrastructure; demand conditions are divided to domestic and overseas markets; relative industry support is researched from three aspects:local service, manufacture and industry association; firm capability is analyzed from overall industry quality, industry cost and scale of enterprise; function of government embodies in launching of policy to support outsourcing industry; opportunity includes East Japan earthquake, China’s strategy of expanding domestic demand and Euro Zone’s debt crisis.Much more attention is given to the fourth and the fifth chapter. These two chapters analyze software and service outsourcing industry in Dalian and Bangalore respectively in details from six aspects mentioned before. Then a conclusion of Dalian’s and Bangalore’s advantages and disadvantages are made. Based on these, the paper concludes that Dalian software and service outsourcing industry should carve out a different way, exploiting domestic market as well as developing software offshore outsourcing as Bangalore. Finally, suggestions and counter-measures are put forward to improve Dalian’s competitiveness of software and service outsourcing industry from four aspects-talent reserve, enterprise competitiveness, governments support and marketing.