International Outsourcing Makes A World

In the development trend of economic globalization, the multinationals in the developed countries or regions continue the industrial restructuring and transfer to enhance the competitiveness of transnational corporations. The first wave of multinationals industrial restructuring and transfer is transferring part of the products manufacturing to lower-cost developing countries or regions, mainly transfer some relatively mature manufacturing projects to be produced in the developing countries or regions; the second wave is to shift other non-core businesses of the enterprise value chain to lower-cost developing countries or areas, and focus on the development of its core business.

Obviously, the first wave of the multinationals' industrial restructuring and transfer is not yet over, but the second wave comes tempestuously. In other words, there are two main ways for multinationals to continue the industrial restructuring and transfer: one is a direct international investment, and it is the traditional method of multinational corporations' industrial restructuring and transfer; the other is the international outsourcing, it is a new method of multinational corporations' industrial restructuring and transfer.

Since the late 1990s, many multinationals have adopted the second industry transfer - through outsourcing services to do the industrial restructuring and transfer. They outsource the non-core businesses, such as data analysis, background service, system software development outsourcing to the lower-cost developing countries or regions, and the company headquarters will focus on enhancing its core business competitiveness.

At present, with the background of increasingly deepened globalized economy, the services outsourcing of multinational corporations makes the global economy together, and forms a strong world industry supply chain.

However, economic globalization has brought not only the lives of the globalization of national economies, but also the deepened international economic relations in the world. This inseparable relationship is shown through the internationalization and globalization of production activities and business services. At present, the rise of international outsourcing services forms a worldwide services network, all countries are increasingly becoming part of the world production services network, which makes the "borders" of production and service increasingly blurred, the "nationality" of products and services not so obvious. Robert Laker, an American economist says in The Next National Boundary of the United States in such a way: the world is becoming a single market. Where there is the lowest cost, there will be the place for the production. The national boundaries will not be in consideration.

Looking into the future, China must adopt a more active attitude in the international and domestic economic cooperation. We can achieve common development with other countries through the establishment of outsourcing demonstration garden, the outsourcing industry bases, and other means. Only in this way can we catch up with the upgrade and development of the world economy.