A Study On The Effect Of Reverse Service Outsourcing On Employment

Companies in developing countries have outsourced knowledge-intensive links and core links inside to developed countries,since Tholons indicated that offshore outsourcing with reverse geography appeared in India in 2008.Nowadays,reverse service outsourcing has already become pursuing innovation type strategies for developing countries to join global competition actively.It helps developing countries to get rid of low-locked passive situation in the long-term.However,to some extent,developing countries' employment will be affected due to the increasing labor supply from developed countries,no matter through employing high-skilled labor directly,establishing factories in developed countries,or merger and acquisition enterprises in developed countries.First of all,the author realizes study directions and breakthrough points by reading documents.Then,this paper analyses the effect of reverse service outsourcing on outsourcers' employment through theories of service outsourcing and employment.Last,eight developing countries are regarded as research objects after data sieving,which are Bulgaria,Brazil,China,Indonesia,India,Mexico,Russia,Turkey.Based on the data of telecommunication,computer,and information services,other business services in WIOD and IMF from 1995-2014,this paper measures reverse service outsourcing of 8 developing countries.Based on the data of GNI per capita in WB from 1994-2014,this paper measures relative income variable.Based on the data of employment rate and output average annual growth rate of three grade industries from 1995-2014,this paper empirically analyzes the impact of reverse service outsourcing on outsourcers' employment through three grade industries angle using simple and multiple linear regression methods.Conclusions are that reverse service outsourcing generally has negative impacts on service industry's employment,and positive impacts on industry and agriculture's employment.Reverse service outsourcing has positive externality on correlative industries.Compared growth rate of output value and employment rate of lag phase,the impact of reverse service outsourcing on outsourcers' employment is weaker.It is impossible for reverse service outsourcing to affect developing countries' employment by influencing outsourcers' relative income variable.