Labor Economics Explanation of Offshore Outsourcing: An Analytical Perspective of Wage,Labor Efficiency and Labor structure

The outsourcing decision of enterprises depends on cost comparison and price game, while the implementation of a country’s offshore outsourcing is closely related to wage level, social labor efficiency and labor structure. These factors directly affect the job selection, outsourcing scale and the choice of providing countries in offshore outsourcing. The research result shows that transnational outsourcing is actually a kind of specialized division of labor resources among countries, which is essentially due to the obstacle of resources elements’ free flow among countries. It is the realistic optimal choice for a country to make up for the contradiction between supply and demand of labor in the short term. In addition, the nature of the job, the volume of business, the level of technology, and the design of the national political system will have an important impact on the implementation of offshore outsourcing.