An Analysis Framework of Factors Influencing China Software and Information Service Offshore Outsourcing

Offshore outsourcing has become popular because of cost or skill advantage. China is considered as one of major global software and information service offshore destinations, but it cannot compete with India right now. Based on literature review, this paper first presents an overview of the industry. Then 38 service providers in China are investigated to give a firm-level analysis of the industry. A framework of factors influencing the industry is presented. Influence factors are classified into macro factors, middle factors, and micro factors, each of which is analyzed in detail. It is concluded that China software and information service offshore outsourcing industry is of great potential, but needs marketing and advertising.