Research On The China Service Outsourcing Industry’s International Competitiveness

In the late1990s, the first rise of software outsourcing industry took place in India and it created a precedent for international outsourcing service, since then this emerging service industry grows in the world, and has attracted the concern of all countries. For the few years nearby, the global outsourcing market has maintained steady growth, expanded the size of the offshore market, and has tremendous room for growth. From the perspective of international division of labor, the United States, European Union, Japan and other developed countries are still the main employers, while India, China, Russia, Ireland, Brazil and other emerging economies are the main employees. Today, China only second to India, has developed into the world’s second-largest outsourcing employee and plays a big role in undertaking outsourcing service of this emerging industry. This paper, based on the research background, studies the international competitiveness of the service outsourcing industry in China.This study is broadly divided into three parts, elaborates the background and significance of the research, and analyzes the industry’s international competitiveness in international outsourcing service with horizontal and vertical perspectives. Firstly the paper measures the development level of international competitiveness of China’s outsourcing service industry, secondly analyzes the sub-sector outsourcing, ITO and BPO, then analyzes the main factors affecting the international competitiveness of the outsourcing industry between China and India, and expounded China’s advantages and disadvantages in terms of international outsourcing service. Then combine the main factors previously proposed, certifies the affecting factors of international competitiveness in ITO and BPO, respectively, then verifies the degree of influence of each factor, and analyzes the reasons. Finally, with the analysis of advantages and disadvantages of China’s competitiveness and the results of the empirical analysis, this paper proposes feasible policies to conduct the development of this industry. The innovation of this article lies in:(1) Based on the comparative of advantages and disadvantages between India and China, first proposed macro-environmental factors on outsourcing service industry internationally competitive impact, and then discuss the main factors of different sub-sectors Outsourcing ITO and BPO industry international competitiveness impacts with comparative analysis and empirical analysis. This subsection of outsourcing service industry, factors analysis and comparison method may provide a new idea for the research of competitiveness of outsourcing services industry.(2) In this paper, empirical research using new ideas, regressing three measuring indicators of the industry international competitiveness:RCA, MS and TCI factors respectively, and in the choice of variables, based on the traditional "diamond model", taking the two new variables of usage of foreign investment and degree of market opening into account, therefore, obtained different conclusions from the other scholars, which also provides a brand new ideas for the research of international competitiveness of the outsourcing service industry.