In the last decade India has grown up as a mature out-sourcing market, but signs are beginning to show that this entrenched position is likely to change in the coming years.

With only around 215,000 computer science graduates each year, India's I.T. industry is not expanding at sufficient speed to cope with the world's growing demand for off-shore I.T. services.

In addition India is becoming a victim of its own previous successes, as a strong middle-class are enjoying and ever higher standard of living, wages are rising. These increased costs reduce the attractiveness of this region to foreign customers.

China, has enjoyed phenomenal economic growth in the last 20 years and current signs are that this rate of expansion may continue for much of the next decade.

China has invested huge resources into education, concentrating on technical specialisms. It is estimated there are between 600,000 computer science graduates in China each year.

Labour costs in China are still low, and with strong competition for jobs from and increasingly large graduate population, even skilled labour is likely to remain relatively cheap.