China inches up on India for outsourcing

John Cestar thought he had found a big opportunity four years ago, when he opened a business in China and hired local programmers to write software for Western companies
But the initial response was less than enthusiastic, said the Harvard Business School graduate whose company, Freeborders, is in China's southern city of Shenzhen. Western companies seeking to outsource work were focused on India at that time, he said.

"The rest of the world was very skeptical," Cestar said. "India was very successful, and people were satisfied that India was perfect, and there was no need to go anywhere else."
But as the number of U.S. companies with operations in India increased, so did India's wages, personnel turnover and delivery problems, prompting clients to seek alternatives.
China, the Philippines, Russia, Poland, and Israel now are seen as growing alternatives for outsourcing.

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