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| February 07, 2005 | COPYRIGHT 2005 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: John Sparks, Joe Cochrane, George Wehrfritz, Allan Sloan, Carla Power, Mark Hosenball, Ginanne Brownell, Andrew Romano, Jenny Barchfield, Jonathan Ansfield

CHINA

Not Ready to Be No. 1

Whoever said that small is beautiful wasn't thinking of China's technology outsourcing business. The mainland's software and IT sectors have been growing revenues at more than 40 percent per year since 1997, but according to a new study by McKinsey & Co., the jostling of too many small, marginal players is blocking China's emergence as a rival to India as a high-tech outsourcing destination. Three years ago, global technology consultants Gartner Research ...

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