Analysis On The Economic Effects Of Zhejiang’s Undertaking International Service Outsourcing

As a product of division of labor based on international specialization, international service outsourcing is generated in the background of global IT revolution and economic globalization. Its high margin, low energy consumption, asset-light feature triggered a large shift of global services industry. In this new round of industrial shifting,many emerging market countries and regions are hoping to seize the golden opportunity for the industry development, so that they can complete their economic transformation and upgrading through promoting the development of international service outsourcing from a strategic perspective. The government of Zhejiang Province started to pay attention to the international service outsourcing industry in 2009. It will be effectively useful to help enhance the efficiency of economic development and to transform the economic development mode, expanding social overall employment together with enhancing independent innovation capability of enterprises when combining international service outsourcing industry with the own characteristics of Zhejiang Province Economic organically. Therefore, a comprehensive analysis of the contribution of international service outsourcing industry to Zhejiang Province in economic and social level, is quite significant to establish the confidence to continue the development of international service outsourcing industry and its expansion of the government of Zhejiang Province and to enhance the earning capacity of the relevant companies together with achieving the upgrade to the Zhejiang Province whose main economic body is private economy.In this paper, international service outsourcing industry in Zhejiang Province is the research object. Through theoretical analysis and empirical analysis methods, the international service outsourcing business in Zhejiang economic effects are analyzed from a comprehensive study. Some policy recommendations are also made on this basis.This paper is divided into seven chapters altogether. The first chapter is the introduction which mainly introduces the research content and research ideas,together with research methods and innovations. The second chapter introduces the definition of international service outsourcing and sorts out the relevant theoretical research of the economic effects and the motivation of the international service outsourcing due to domestic and foreign scholars from the perspective of economics and management. The third chapter simply analyzes the current situation of China’s international service outsourcing industry first. And then the chapter is focused on analyzing the status of international service outsourcing in Zhejiang. In the end of the chapter, a comparative analysis of the current situation of the two significant service outsourcing city in Zhejiang Province, Hangzhou and Ningbo is made. The fourth chapter makes a theoretical analysis of the mechanism of the Industrial structure effect, employment effect, the effect of trade and technology spillover effect of International service outsourcing of Zhejiang province. The fifth chapter verifies the level of the four specific economic effects from the fourth chapter by way of empirical analysis and continues to establish a two-step regression model to demonstrate the impact on the total economy in Zhejiang Province which generated by international service outsourcing through this four economic effects.Based on the analysis of the fomer part, the chapter six proposes some policy recommendations from enterprise, industry and government levels. Chapter seven gives conclusions and outlook that Zhejiang should unswervingly continue to develop the international service outsourcing and complete the mission of economic transformation and upgrading.