Abstract:The service outsourcing embodied by producer service is the trend of the second round of international industrial transfer, and free service trade can greatly deepen this kind of international industrial transfer trend, although service outsourcing has significant positive externality and negative externality, service outsourcing, in general, is helpful for developing countries to accept global industrial transfer and to boost local industrial valuechain upgrading and modern service industry development. China, as an important developing country, should get rid of all kinds of systematic barriers, actively develop service outsourcing, promote free service trade, accept new global industrial transfer and boost industrial value chain upgrading.