A Study On The Influencing Factors Of Beijing 's Financial Service Outsourcing

With the economic globalization and the rapid development of science and technology, the old international trade barriers are broken, and the cost of cross-border division reduced greatly, services outsourcing came into being. Banking, Insurers, Security and other financial institutions take adequate consideration to Reduce costs, enhance core competitiveness and realign strategy while the separation of international finance and refinement of department. In nowadays world economy setting, many developing countries take service outsourcing as an important economic policy and China is no exception. As the capital of China and the service outsourcing model city, Beijing’s service outsourcing industry has been developing rapidly in recent years, especially the rapid rise of the financial services outsourcing, and has brought significant effect to regional economic growth.Scholars at home and board always studied development status, tendency, competition and risk control, and in a majority way of how the outsourcer countries choosing a host country. The paper works on offshore outsourcing in financial service, analyzes with theory and practical in the perspective host country and introduces background theory of our country and status of global outsourcing in financial. This paper starts with the overall situation of China to undertake financial services outsourcing. Then it comes to the advantages and disadvantages of service outsourcing industry of Beijing. After that, the paper elaborates on some factors and builds up a multiple regression model to empirically study these factors. Considering the results of empirical analysis, the paper proposes the main factors for financial service outsourcing of Beijing as well as certain policy suggestions.The empirical research indicates that the development of Beijing’s financial service outsourcing industry is influenced by factors including service trade openness, labor cost, human capital availability and infrastructure. The regress results show that service trade openness is the primary factor, and others play significant roles too. However, R&D is not that important.