Introduction: ScenarioOver the past decade there have been many countries where US businesses have offshored. However, the two that catch my attention are India and China. I believe that both countries possess qualities that allow them to provide a certain set of goods and services that are superior to other competing countries. India, on the one hand, seems to specialize in services, providing many telecommunications capabilities essential for customer service. Unfortunately, India has a disadvantage in the way it provides communications services; no one can understand their “English!” India possesses positive traits of most of Porter's five forces. They are considered the number one service provider in the world. They provide telecommunications services, software and hardware, have the largest IT sector and have management analysis capabilities. Overall, they represent enormous supply power for the company and the labor cost is relatively low. They have fast communication and can handle many types of business processes. China, on the other hand, also provides goods and services. They have made some cities major hotspots of global communications. They also produce low-cost processed goods for many companies operating there offshore. However, as the economy grows and workers' wages rise, many companies find themselves moving to other locations that can meet their budgetary needs. The Chinese government is another regulator for business entry. The government does not regulate the services they produce as it should. Due to the lack of regulation in China, many companies maintain their operations in India, where service regulations are much stricter. I think these are the two best places... middle of paper......cia.gov/library/publications/the-world-factbook/>.NASSCOM. Network. March 9, 2011. “Offshore Software Development in India and Offshore Custom Programming in India: Benefits.” Offshore outsourcing | Learn about issues related to the process of outsourcing offshore resources | Indian IT outsourcing scenario. Network. March 09, 2011. .Overby Monday, Stephanie. “Offshore Outsourcing: 24 Ways to Compare India and China CIO.com.” CIO.com. November 29, 2010. Web. March 8, 2011. .Overby, Stephanie. “Offshore IT Services Showdown: India vs. China CIO.com.” CIO.com. 07 September 2007. Web. 08 March. 2011. .