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Chinese Service Outsourcing Strategy Based on Global Value Chain Integration

Tian Bi-fei

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Abstract

Based on the global value chain(GVC) theory,this paper presents a three-step strategy for Chinese enterprises to use transnational corporation(TNC) service outsourcing focusing on IT industry.By embedding in the GVC dominated by the TNCs.According to the producer-driven IT outsourcing,buyer-driven IT outsourcing and business process outsourcing,China business should accept TNC service outsourcing respectively through establishing technology monitoring post and making breakthrough innovation,constructing learning alliance and merging and acquisition,and increasing business scale and deep specialization.In this way can Chinese enterprises master the core technology and accomplish original innovation.

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What this paper is about

Based on the global value chain(GVC) theory,this paper presents a three-step strategy for Chinese enterprises to use transnational corporation(TNC) service outsourcing focusing on IT industry.By embedding in the GVC dominated by the TNCs.According to the producer-driven IT outsourcing,buyer-driven IT outsourcing and business process outsourcing,China business should accept TNC service outsourcing respectively through establishing technology monitoring post and making breakthrough innovation,constructing learning alliance and merging and acquisition,and increasing business scale and deep specialization.In this way can Chinese enterprises master the core technology and accomplish original innovation.

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Available abstract

Based on the global value chain(GVC) theory,this paper presents a three-step strategy for Chinese enterprises to use transnational corporation(TNC) service outsourcing focusing on IT industry.By embedding in the GVC dominated by the TNCs.According to the producer-driven IT outsourcing,buyer-driven IT outsourcing and business process outsourcing,China business should accept TNC service outsourcing respectively through establishing technology monitoring post and making breakthrough innovation,constructing learning alliance and merging and acquisition,and increasing business scale and deep specialization.In this way can Chinese enterprises master the core technology and accomplish original innovation.

Key concepts: Outsourcing, Business, Knowledge process outsourcing, Industrial organization, Alliance, Service (business), Global value chain, Corporation

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