An Empirical Analysis on Industrial Organization Structure of Chinese Software Service Outsourcing
ABSTRACT
The global service outsourcing industry has developed rapidly; but how about the software service outsourcing industry in China? Employing the combination research methodologies of field survey, literature research and analysis of the collected data from the survey questionnaire using the SPSS statistic software and its relativity tests, this empirical study analyzed the market structure and performance of Beijing software service outsourcing industry. Based on the SCP paradigm of the industrial organization theory, the conclusion revealed that the market concentration of Beijing software service outsourcing industry was on the low level. The industry possesses the characteristics of low risk, low profit and low product differentiation. There is an apparent trend that increasing profit occurs to the large scale service organizations. Low level price competition dominates the industry at present. The market performance of the industry is therefore low, resulting in the low average profit to most service companies; but the average ratal of these firms is on an upward trend year after year.
The global service outsourcing industry has developed rapidly; but how about the software service outsourcing industry in China? Employing the combination research methodologies of field survey, literature research and analysis of the collected data from the survey questionnaire using the SPSS statistic software and its relativity tests, this empirical study analyzed the market structure and performance of Beijing software service outsourcing industry. Based on the SCP paradigm of the industrial organization theory, the conclusion revealed that the market concentration of Beijing software service outsourcing industry was on the low level. The industry possesses the characteristics of low risk, low profit and low product differentiation. There is an apparent trend that increasing profit occurs to the large scale service organizations. Low level price competition dominates the industry at present. The market performance of the industry is therefore low, resulting in the low average profit to most service companies; but the average ratal of these firms is on an upward trend year after year.
KEYWORDS
Industrial Organization, SCP Paradigm, Software, Service Outsourcing, Industrial Structure, Empirical Analysis
Industrial Organization, SCP Paradigm, Software, Service Outsourcing, Industrial Structure, Empirical Analysis
Cite this paper
nullJ. Shen and H. Li, "An Empirical Analysis on Industrial Organization Structure of Chinese Software Service Outsourcing," Journal of Service Science and Management, Vol. 3 No. 2, 2010, pp. 218-226. doi: 10.4236/jssm.2010.32027.
nullJ. Shen and H. Li, "An Empirical Analysis on Industrial Organization Structure of Chinese Software Service Outsourcing," Journal of Service Science and Management, Vol. 3 No. 2, 2010, pp. 218-226. doi: 10.4236/jssm.2010.32027.
References
[1] China Software Association, etc., “The Research Report of China Software Industry Development in 2008,” China, 2008. [2] X. F. Niu, “The Evolvement and Development of West- ern Industrial Theory,” Economy Research, Vol. 3, 2004, pp. 116-123. [3] Beijing Statistics Bureau, “Statistical Bulletin National Economic and Social Development of Beijing in 2007,” Beijing Statistics Bureau, Beijing, 2008. [4] Beijing Software and Information Services Promotion Centre, etc., “The Blue Book of Beijing Software Industry Development in 2008,” China, 2008. [5] E. Fukuura, “The International Outsourcing of Japan Companies,” Journal of Industry Economy, Vol. 3, 2008.
[1] China Software Association, etc., “The Research Report of China Software Industry Development in 2008,” China, 2008. [2] X. F. Niu, “The Evolvement and Development of West- ern Industrial Theory,” Economy Research, Vol. 3, 2004, pp. 116-123. [3] Beijing Statistics Bureau, “Statistical Bulletin National Economic and Social Development of Beijing in 2007,” Beijing Statistics Bureau, Beijing, 2008. [4] Beijing Software and Information Services Promotion Centre, etc., “The Blue Book of Beijing Software Industry Development in 2008,” China, 2008. [5] E. Fukuura, “The International Outsourcing of Japan Companies,” Journal of Industry Economy, Vol. 3, 2008.