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The Research on Development Strategies of China’s Software Outsourcing

Author: LiYang
Tutor: LuYanQiu
School: Jilin University
Course: International Economy and Trade
Keywords: SoftwareOutsourcing SWOT Analysis development strategy
CLC: F426.672
Type: Master's thesis
Year: 2010
Downloads: 482
Quote: 3
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Abstract


Under the environment of economic globalization and industrial restructuring, international labor-division system becomes more sophisticated and improved. Multinational companies send some non-core outsourcing to developing countries in order to reduce costs and better focusing on core business. Therefore, international service outsourcing market gains rapid development. The performance of software outsourcing, which has become an international industry, is very eye-catching in particular, with a very broad market and good prospects.In the software outsourcing market, India, walks in front of us. India successfully gets into the top spot of software outsourcing market with its clear development orientation, good support services, flexible professional education and natural talent, and it tops in taking up software outsourcing from Europe and the United States. Software outsourcing in China in recent years has made gratifying achievements. Whereas, compared with India which started software outsourcing at nearly the same time with us, there still exist some gaps and weaknesses in China’s software outsourcing. In practical work, we should actively adopt the successful experience of India and avoid its shortcomings to improve China’s international competitiveness in software outsourcing.The software outsourcing market will be promising as the scale of global software outsourcing market continues to expand. For China’s software outsourcing industry and enterprises, history has given us the opportunity. It is an important and urgent research project that we should take in seizing opportunities, giving full play to our advantages, along with taking effective measures to overcome difficulties, redressing the wrongs to maintain sound development of China’s software outsourcing and gain upper hand in international outsourcing market.Firstly,the software outsourcing and its related concepts are expounded in the essay;secondly the theory of transaction costs and comparative advantage, core competence theory and the theory of supply chain and value chain are introduced, while to learn and sort out the relevant research literature at home and abroad; thirdly, the paper analyzes the status of China software outsourcing’s development and takes India for example to introduce its successful experience of software outsourcing and possible causes; Finally, based on the SWOT analysis, the paper discusses software outsourcing in China and put forward description of methodology one by one, and on this basis, some countermeasures and advice for developing China’s software outsourcing industry are put forward.

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