Analysis On Influencing Factors Of China Undertaking Of International Service Outsourcing

Service outsourcing has been a new form of industry producing method since1990s. Currently, a new round of industry-transfer process with the feature of modern service, high-end manufacturing as well as R&I) is proceeding all over the world, both countries and districts are involved in this trend, more than80%of the demand of service outsourcing comes from developed countries like America. Europe and Japan, at the same time, India, Philippines and Ireland have experienced a rapid development relying on service outsourcing, some developing countries like Russia and Brazil have been the emerging force of the international service outsourcing. There has formed a market structure where the developed countries are the main force of the buyer of the service and the developing countries as the providers of the service. It is significant to study the influencing factors which affect China to undertake the service outsourcing.Firstly, the article introduces the researches made the domestic and foreign scholars in the view of the motivation, effect and influencing factors. Secondly, the article introduces the related theory and constructs an analytical framework on the basis of definition, characteristics, motivation and existed researches, then makes qualitative research. Thirdly, the article analyzes the development of the service outsourcing in China and the statue of the influencing factors. Fourthly, the article quantifies the influential factors and does positive analysis. Finally, according to the result of the positive analysis and the problems existed, the article makes some suggestions.The results are as follows:The service outsourcing has a lot potential to develop, Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) would grow more quick, compared with Information Technology Outsourcing (ITO) and there would be more competition between the service suppliers. China has experienced rapid growth as well as some problems like relatively concentrated buyers, small suppliers, human resource structure and the overlap business between the model cities. After model estimation, we get that the market scale, label quality, service liberalization and exchange rate do not have significant effect on the service outsourcing undertaking scale, while the service development, the level of IT development, service demand and R&D investment have significantly positive effect and the labor cost has negative effect.