Commercial services—including those used by Fortune 500 companies—outsourced to India typically consist of information technology outsourcing or business process outsourcing. For example, IBM likely employs the majority of its employees in India, where they process bank records, perform financial analyses, and write software. Chinese workers can no doubt handle these tasks, but given the reports of industrial espionage in the country, foreign businesses may be wary of trusting their internal workings of their computer systems, accounting, or customer relations platforms. As a corollary, companies might also be unwilling to reveal to their customers that they outsource customer personal data to China. In a time-sensitive services environment, uncertainty about whether information flow can be interrupted for political reasons is difficult to tolerate. Most people do not have the same fear of transferring information to India, which, as the world’s largest democracy, maintains a boisterous and free press.
–China may be the world’s factory but it won’t become our information hub
Of course, if you replace "China" with "NSA," things get intellectually annoying as well.