For some years, the information technology industry has been flourishing in both China and Hong Kong. In view of the cost-efficiency and abundant supply of staff in China, more and more Hong Kong organizations have set up software development labs in China in the form of wholly-owned establishments or joint ventures. Due to different environmental factors, there are differences in software project management issues in China and Hong Kong. This study focuses on two variables that impact the success of a project: software development management practices and organizational factors. Through a questionnaire survey, we have identified a list of good management practices adopted in the two regions. We have also developed a list of organizational factors that affect the adoption of management practices. The adoption of management practices and differences in organizational factors in the two regions are then compared against those of European countries. In view of the growing importance and close connection of software industries in both regions, this study contributes to a better understanding of project management issues in an organizational context.