In this paper，we analysis the traditional cost infl uence on location selection.Based on the special character of service offshore outsourcing，we propose that the importance of cost has been weakened. We then empirically test our proposal by using fifty country outsourcing information.The result shows that instead of the negative ef ect of cost on service outsourcing，we fi nd the positive ef ect.It matches the service outsourcing phenomena but is against the traditional cost advantage perception.The result implies the invalidation of cost advantage in explaining service of shore outsourcing. As for China，it is proper for China to pay more attention to the infl uential factor of service outsourcing such as service facilities and the quality of service stafs.