This paper mainly makes an empirical research on the influencing factors of competitiveness of China's undertaking information technology outsourcing and the relationship between them. Based on Porter's competitiveness diamond model and relative domestic and foreign researches, this paper selects seventeen indicators as influencing factors and classifies them into six groups. Then through factor analysis, the principal component factors of each group are extracted. Through granger causality test and co-integration test the influencing factors which meet the measurement requirement are obtained. Finally the relationship between competitiveness of China's undertaking IT outsourcing and several indicators is obtained by regression analysis. Research concludes that rising input of capital and labor, rising cost of labor can undermine the competitiveness of China's undertaking information technology outsourcing; government support can elevate the competitiveness; other factors have no influence on the competitiveness.
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