There are many understandings of the services outsourcing concept home and abroad. The most succinct expression is: the original in-house corporate services activities are transferred to external enterprises to implement a business arrangement. The development of services outsourcing is transferring the non-core businesses in the value chain, developing its own core businesses, focusing on their core competitive edges, achieving lower costs and enhancing competitiveness of a win-win situation.
According to the geographic distribution of the outsourcing vendors, the services outsourcing can be divided into service in the outsourcing and offshoring. Outsourcing usually refers to the services outsourcing of domestic manufacturing enterprises, mainly in the production of goods and other services. As the service value chain is more worth than material production itself, it is manufacturing enterprises remain competitive in the market, the key is to maintain the status of business services advantages, namely in the upstream (such as the feasibility study, venture capital, the concept of product design, market research , etc.), midstream (such as quality control, accounting, personnel management, legal, insurance, etc.) and downstream (such as advertising, logistics, marketing, staff training, etc.) activities, and maintain the service advantages of "upstream", "mid" and "downstream" phase. The domestic services outsourcing is extremely broad-ranged, IT services, human resources management, finance, insurance, accounting, logistics, research and development, product design, and many other fields, production is usually sense of an important component of the services sector.
Offshore outsourcing is conforming to the globalization economic and the rapid development of information technology. In recent years, as the global outsourcing market focused on the developed countries, such as the United States and Europe, with higher levels of education and lower wage levels of China, India, Ireland, the Philippines and Russia and other countries, the offshore outsourcing services business is booming development.
The on shore and off shore have many similar attributes, but also there is a big difference. The on shore outsourcing more emphasized the core business strategy, technology and expertise from fixed costs to variable costs of the transfer, scaled economies, and value-added-value rather than cost reduction; offshore outsourcing was mainly emphasized cost savings, market share, skilled labor availability, taking advantage of lower production costs to offset the higher transaction costs. In considering whether or not to offshore outsourcing, the cost is the deciding factor, technical capabilities, quality of service and other factors followed.
According to the Ministry of Commerce issued by the "Outsourcing of Services Statistics System," which described the concept of outsourcing services: outsourcing service providers through the service outsourcing contract to provide information technology outsourcing (ITO) and business process outsourcing (BPO ). The ITO emphasis on technical, cost and more involved in services; BPO business processes more stressed, the solution is the business results and the effectiveness of the operation.
In recent years, China's outsourcing of services from scratch, and continues to expand the scale, the area has been gradually broadened, scope of business mainly involves electronic information industry, producer services, as well as cultural and creative industries, services involving Japan, South Korea, Europe, the United States and India. In the global outsourcing of services in the distribution market, China's share of the market is still relatively small. In 2005, China's software outsourcing total exports is about 960 million US dollars, the global software outsourcing is only 2.3 per cent of the total exports, and other outsourcing services market share is even small. Shanghai, Beijing and other cities have developed a number of outsourcing industry concentration, and significant economic benefits of international service outsourcing Park; domestic outsourcing enterprises are growing rapidly, so as to gradually change its foreign-based pattern.
In order to promote the development of China's outsourcing services industry, in the "11th Five-Year" plan, the State Council has clearly outline the proposed construction of the entire service outsourcing bases, and orderly transfer to undertake international services. In 2006, the Commerce Department started the undertaking the "Qianbaishi" services outsourcing project, the first set of five service outsourcing bases cities are Dalian, Xi'an, Chengdu, Shanghai, Shenzhen; early in 2007, Tianjin, Beijing, Nanjing , Hangzhou, Wuhan and Jinan were identified as the second installment of "China Services Outsourcing Base City."
China, however, there are still some outstanding problems to undertake the international service outsourcing development, the main ones are:
first, human resource structure is not entirely reasonable. Although China has a number of colleges, universities, has rich reserves of talents, but the talent structure is not very reasonable. Take the software industry as an example, the software industry's demand for qualified personnel with pyramid-shaped structure, and software talent structure is "Ganlanxing", the top software industry architects, system designers are serious shortage, the blue-collar industries are scarce, and the middle pyramid system engineers are relatively surplus.
Second, it is difficult to form a scattered layout and combined effect. Industrial clustering can have a significant economic effect, services outsourcing also stress the scale effect, but the current layout development of China's service outsourcing is rather scattered, small-scale enterprises, lacking the leading enterprises and well-known brands. Lacking of planning guidance policy, there's no adequate capacities to follow and develop large-scaled services outsourcing projects, the combined effect is greater constrained and impacted.
Third, lacking of the necessary policy supports. The development of services outsourcing is related to wide-area, multi-sectoral, and need to improve measures to support the industry. For the outsourcing business enterprises, from the registration policy, personnel policy to tax policy, fiscal policy, and so on, it needs to have a set of preferential policies to support the outsourcing services. At present, China does not have the related support policies, although China's current policy has supported the development of services outsourcing, these policies only relate to certain areas, coupled with some of the policies (such as taxes) is unable to implement the effect of policies .
Fourth, the market is not standard. China's service outsourcing market still have many non-standard phenomena, such as monitoring the quality of outsourcing services are not yet in place, services outsourcing contract is not very normal, performance of the contract is not very strict, and the lack of industry standards, such as unfair competitions in the market are still existed.
In order to better promote the development of China's service outsourcing, from now on, we need to strengthen the abilities to promote the organization and leadership of services outsourcing industry, including manpower planning, industrial policy plays a role in promoting and increasing the intensity of investment services, strengthening the personnel training and introduction, and do the statistics and analysis.
