Abstract: Due to the high profit and various benefits to both in terms of the parties awarding the contract and their contractors, an increasing number of Japanese enterprises and their contractors get involved in the software contract. As the main competitive contractors of the Japanese software enterprises, the contracting enterprises between China and India have to face the increasingly cut-throat competition. This research analyzes 14 depth-development influencing factors of the selection functions of the service outsourcers, the result of which shows that under-reserve of human resource, low level of industry maturity, lack of relevant legislations and regulations, and low managerial levels are the four major influencing factors in the competition of gaining the outsourcing contract offered by Japanese enterprises. Based on the analysis, the author also puts forth several countermeasures, in hope of throwing some light on the healthy development of the said industry.