China could overtake India as the top outsourcing destination. This was the result of the research study entitled Tracing China's IT Software Services Industry Evolution done by NASSCOM.

Some of the factors that were considered for that conclusion was the educated workforce in the country as well as the strong support of the Chinese government. If the Chinese government would continue their campaign in the outsourcing arena, they could have the chance of getting at the top spot in the next 3-5 years. Though that is the case, negative factors which could hinder China's growth could also be seen in the country such as the low use of the English language in the business sector and the difference in cultures.

One of the things that I could also add as a "negative factor" could be the diminishing quality of China in terms of manufacturing. Recent news reports are showing that companies that had manufacturing deals in China are pulling them out due to poor quality. If this would be the case, there is also a big chance that outsourcing could also experience a "pull-out" in their outsourcing deals.