On the basis of a brief introduction the status quo of development of service outsourcing industry in Hubei Province,according to the service outsourcing to undertake the competitiveness factors evaluation criteria,this paper analyzes constraints factors of Hubei Province to undertake international service outsourcing from the fundamentals,corporate and market factors. The research found that there are more constraints in international service outsourcing in Hubei Province,such as lack of government support,intellectual property protection imperfect,labor costs the increase,outsourcing enterprises small scale,lack of innovative capacity of outsourcing enterprises,the service outsourcing intermediary organizations system imperfect,a serious brain drain,low level of English communication. Finally,the paper puts forward policy recommendations of Hubei Province to undertake international service outsourcing from the two levels of government and enterprises,including to increase policy support to strengthen IPR protection by the government,improve intermediary service system,improve the employment mechanism,pay attention to English education,continue to expand the enterprises scale,enhance the capability of independent innovation and improve service quality.

In this paper,the C-D production function extended to build a model of the foreign direct investment to the technology spillover effect,the use of input-output table in 2007 and 30 different sectors of the manufacturing industry in Hubei Province in 2006-2010,the panel data on foreign direct investment backward technology spillover empirical test.The results show that the manufacturing sector FDI existence of Hubei significantly positive after the technology spillovers and significant positive industry technology spillovers.