The Impact Of Offshore Outsourcing In Services On China’s Employment

Since the21st century, Service Industry transfer and offshore outsourcing inservices has become an obvious character of new economic globalization..Implementing active strategy to use international resources, more and moremultinational corporations enhance competitiveness by introducing foreign service.Although offshore outsourcing in services promotes integration of global resources, atthe same time, reduction of jobs attracts most of developed countries’ attention.Therefore, the purpose of this paper is to study the impact of offshore outsourcing inservices on China’s employment in order to improve the theoretical exploration ofoffshore outsourcing services in our country, and to put forward reasonablesuggestions according to the results of the study.The first chapter introduces the meaning and backdrop of the task, and we find thatthere is no existing study which analyzes the impacts of offshore outsourcing inservices on China’s employment in view of three industries through panel data model.So at first, the text discusses the definition, theory foundations of offshoreoutsourcing, whose measurements also are given. Then, this article investigates thetheory and the action mechanism of offshore outsourcing in services on China’semployment, and analyzes characteristics of development of offshore outsourcing inservices and the employment. Finally, we try to analysis the impact of offshoreoutsourcing in services on China’s employment from the following of respects: totalemployment, industrial employment structure, employment skills.The results shows that offshore outsourcing in services will lead to the loss of jobs,which has a bigger influence on the tertiary industry labor employment compared tothe first and second industry. In addition, offshore outsourcing in services has anegative influence on the demand for highly skilled labor-intensive industries andpositive effects for low-skilled labor-intensive industries.