I suggested several months ago that India-based off-shoring operations might have something to worry about in new competition from China as a center for technology outsourcing, and today there is more, if anecdotal, evidence that something of that nature is beginning to occur in the marketplace.

This takes the form of an article in the most recent edition of InformationWeek by NeatReceipts CIO Jeff Burk. Burk describes both the decision making process that lead the company to selecting a China-based off-shore operation over an India-based operation, and the ensuing difficulties with the selection. Some of these are global issues with off-shoring (time differences) and some were particular to China (a lack of English speakers overseas... no longer a significant issue for most Indian firms). As I had suggested in my first post on the subject (linked above), a lack of solid native project management experience in China is a real deficiency. Overall, however, Burk and NeatReceipts managed to satisfy themselves with the arrangement and were pleased with the outcomes and the efficiencies gained.

Expect to see more of these sorts of stories as China ramps up and begins to more aggressively pursue off-shoring business.