The technology spillover ef ect is defined as resources like human capital,R&D input,and managerial experiences in multinational corporations(MNCs)have been unconsciously spread out to recipientcountries throughMNCs' investment,whichwillpromotetechnicalprogress andeconomic growth.This paper focuses on the technology spillover ef ects by undertaking international software outsourcing projects in China,using cross-sectional data of fourteen service outsourcing base cities. Theresults demenstratethat: Byundertakinginternationalsoftwareoutsourcingprojects,localsoftware industry can improve it's productivity through technology spillover ef ects.And technology spillovers arelargelythroughthedemonstrationef ects ofmultinationals andcumulationef ects ofhumancapitals. The Chinese government should keep up the opening-up policy for soft ware industry,improve the cumulation of human capitals in soft ware industry.