Empirical Study On The Influencing Factors Of China’s Service Outsourcing Competitiveness

Since the end of the last century, the global producing and service network completedits pattern of integration. As the service industry has become to be the leading area of “global value chain”, the initial trade globalization has become the globalization of production and services.Since then, multinational companies has become the dominant force of the international trade. With its function of effectively reduction the cost and optimal allocation of resources,offshore service outsourcing has become an important form of servicetrade, and also a better strategic of the global value chain optimized restructuring and enterprise improving international competitiveness. With the rapid development of global service outsourcing industry, it has gradually formed a pattern that developed countries are the main outsourcer countries while developing countries are the main outsourcee countries, which made a valuable opportunity to improve the international competitive advantage of the services industryof China. Compared with other countries, China started its service outsourcing industry late, however, the industry has developed rapidly over the past decade, and it has the second largest scale in the world now, just behind that of India. Vast domestic market and abundant low-cost labor provided advantage condition for our country to attract foreign investment, but there is still a lot of threatens to China’sservice outsourcing industry. Especially in recent years, the slowdown economy and labor advantage losing make it necessary that upgrading China’s service outsourcing industry.Under the background of the new economicsituation,this article will sum up the latest scale and difficultiesof China’s service outsourcing industry. With the method of theoretical analysis and empirical analysis, as well as qualitative analysis and quantitative analysis, study the factors affecting the competitiveness of service outsourcing industry in China, and then have some solutions to those problems.There are six chapters in this article, the first chapter introduces the globalconditionsand research reason of this paper, literature review, research methods, etc; the second chapter is an overview of the related theories of service outsourcing; the third chapter introduces the global service outsourcing and the domestic scale, characteristic and developing trend of China’s service outsourcing, as well as some evaluation index; the forth chapter is the diamond model empirical analysis oncompetitiveness of China’s service outsourcing industry; the fifth chapter is the corresponding policy recommendations according to the problems; the last chapter are research conclusions and prospects.Based on the results of all the analysis, it has some conclusions: with the seriouspressure of the global economy, there is still a good improvement in China’s service outsourcing industry. There is still very large gap between China’s service industry and India’s service industry,we need to improve the industry scale and the international competitiveness of service trade. The industry is mainly supported by the development of the tertiary industry, while senior human resource and the scientific research have not played a significant role. The advantages of China’sservice outsourcing industry arestabledomestic economy, national policy support, huge domestic market, good infrastructure and low-cost human resource. The disadvantages are shortage of high-tech talents, increasing basic salary, shortage of international brands, lack of big enterprises, and insufficient protection on intellectual property rights. Therefore, this article gives some policy suggestions: as for the government, thereshould be more policy support, they need to complete infrastructure, and build demonstration cities; in the industry level, they should construct public service platform,cultivate outsourcing talents, and strengthen supervising intellectual property rights; in the enterprise level, they should adhere to scientific and technological innovation, expand the scale of the enterprise, make transformation and upgrading of the enterprises.