Abstract：

The objective of this paper isto analyze the importance and feasibility of service process control owing to international service outsourcing (ISO) isbooming up nowadays. This paper takes software service supply chain as an example toanalyze the service process control. Firstly, this paper presents thedifference among three concepts, i.e. IT outsourcing, software outsourcing andinternational service outsourcing. Secondly, this paper proponents the supplychain of international software outsourcing and analyzes the structure of suchsupply chain. Thirdly this paper focuses on the process control of softwareoffshore outsourcing andtries to optimize thecritical procedures of offshore software outsourcing based on some quantitativemethods. Lastly, this paper gives some suggestions to the Chinese softwarecompanies for process control when executing the outsourcing project. 

Key words: Offshoresoftware outsourcing, 

Service supply chain, Process control

1. Introduction

Service economy is playing a more important role inthe contemporary society. The amount of global service trade increased from 825bn$ in 1981 to 1570 bn$ in 2003 according to World Trade Organization (WTO). Furthermore,the second globalization process characterized software industry is acceleratingthe transfer of knowledgeable positions from developed countries to developingcountries. This is a great opportunity for those nations devoting toinformation industry. Now Indiais becoming the largest call center and back office in the international serviceoutsourcing market. And Philippine is becoming the accounting outsourcing centerin the world. Compared with such competitors, Chinaonly accounts for a littleshare in the international service outsourcing market. Consequently, it isnecessary for Chinese companies to take use of this chance to benefit from theoffshore service outsourcing and realize the optimization of software industrystructure. 

2. Relations among IT outsourcing, software outsourcing & internationalservice outsourcing

IT outsourcing, software outsourcing andinternational service outsourcing are three different concepts. IT outsourcing meanscompanies outsource their IT system operation and development to outsider ITproviders by contracts, the objective is to get IT professional service. Softwareoutsourcing means organizations outsource their software service to outsideservice providers by contracts, the objective is to outsource non-core, notadept and cheap software service to outside software professionals. Internationalservice outsourcing refers that organizations outsource their service processto offshore service providers, the objective is to get cheap service process. Table1 shows the difference among the three concepts.