Technology outsourcing is the fastest growing sector in the outsourcing market and includes everything from software development outsourcing to technical support and web designing outsourcing. As far as technology outsourcing is concerned India stands out as one of the most favorite destinations for companies in developed nations.

India's closest competitor China which being seen as the outsourcing destination of the future, is not far behind too! The Chinese government has stepped up efforts in order to eliminate the factors that have lead to China not being a hot outsourcing destination as of now. One such factors being the unavailability of English speaking workforce. The Chinese government has introduced compulsory English speaking courses in all school levels and has started efforts to improve its communications and technological infrastructure. With all these efforts China sure seems to be on the right track.

Offshore outsourcing surveys clearly indicate that outsourcing is clearly benefiting only a small part of the economy. As resources start draining in countries like India it will be China and Philippines or other Easter European outsourcing destinations which will be calling the shots. The question of India outsourcing to china is also on the cards with some big Indian companies setting up branches in China.