China is the largest manufacturing country in the world, and the IT industry is no exception. As outsourcing to China has been in place for decades, it has helped create an ideal support system for any industry. China has now become the new headquarters for Offshore Outsourcing in the IT industry.

Its legislation has adopted new commercial and intellectual property laws in recent years to favor those working in the IT industry.
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Truth be told, researchers can use statistics to argue just about any point of view. Case in point: A recent study by McKinsey concluded that China's IT outsourcing industry, often mentioned in the same breath as India's these days, won't pose a threat to its continental rival for many years. According to the study, The Chinese must consolidate their highly fragmented industry to gain the size and expertise needed to capture large international projects.
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IT Outsourcing: China versus India
By Vanaja Sarma, Industry Analyst

Outsourcing has become one of the most preferred means of achieving operational excellence across industries and the preferred destinations for outsourcing have been China and India. While China has been conventionally considered the hub for manufacturing, India has traditionally attracted most of the services outsourcing projects. The information technology (IT) industry has been one of the foremost industries to adopt outsourcing as a means of cutting costs and optimizing resources.