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Service Outsourcing in Overseas Service Capability Development

Author: LingYanXiong
Tutor: ZhangHongPing
School: Shandong University
Course: Business Administration
Keywords: service outsourcing oversea service capability construction ofservice capability selective service outsourcing
CLC: F719
Type: Master's thesis
Year: 2012
Downloads: 17
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AB Company, as an emerging IT company in China, has been devoted to sales, services and research and development of product storage and solutions. With the expansion of oversea markets, AB Company’s oversea service capability shows obvious the disparity and the insufficiency and it gradually tends to be worse. AB has met a tough bottleneck problem, that is, how to enhance the oversea service ability so as to rapidly meet the clients’needs.The purpose of the thesis is to how to solve the oversea service scarce capability by implementing service outsourcing. First of all, the thesis gives a brief introduction to the basic concept and theories of IT service outsourcing as well as its philosophy. Then, it detailed analyses the oversea service capability that AB Company are facing, based on the clients’service needs, and the gap between the status quo of its oversea capability and its goals. Then, outsourcing of integration of the transaction costs and the core competence of the corporation and its self-built decision model and outsourcing of integration of comparative advantage theory and weakness assessment and its self-built decision model demonstrate what services are feasible to be outsourced during the construction of oversea service capability of AB Company while what else services are necessarily self-built. It also works out the selective service outsourcing proposal to enhance AB Company’s oversea service capability. Next, based on this selective service outsourcing proposal, the thesis expounds on the implementation of the proposal, that is, how to design and establish double-service platform of headquarters and oversea outsourcing centers and work out the problem-shooting process, technical support process as well as supplementary service process from the double-service platform. At last, the thesis, illustrating the results of service capability advancement, decrease in service costs and promotion of customer satisfaction, proves the effectiveness of tackling with the scarce capability issue of AB Company’s oversea service.The innovations of the thesis are as following. Firstly, most researches on service outsourcing at present are from the service suppliers’point of view and they mainly study how Chinese service outsourcing should develop and how to undertake oversea outsourcing businesses. However, there are only a few researches on the solutions to practical service problems with the use of service outsourcing. The thesis, from the practical problems that AB Company are facing as well as clients’perspective, studies the methods to work out service scarce capability issue with the use of outsourcing. Secondly, the thesis proposes the outsourcing of integration of the transaction costs and the core competence of the corporation, self-built decision-making model and the outsourcing of integration of comparative advantage theory and weakness assessment. With the help of self-built decision-making model, it decides what services should be outsourced and what should not be. Thirdly, Chinese IT corporations are currently active to expand oversea markets. As to the complexity of the construction of oversea service capability, most of them are facing how to fast cut down costs so as to enhance its competitive oversea markets. The thesis proposes that service outsourcing is a practical proposal to enhance oversea service capability.

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