CM: How has your view of consulting opportunities (tied to the offshoring trend) changed over the last two years?

Vashistha: Certain things have definitely changed. For example, I wouldn’t refer to it as offshoring anymore. It’s more about globalizing services, because companies are looking at it for more than just one location and more than just one process.

Meanwhile, the depth or penetration within a client or within a company in

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terms of how much of that process is being offshored hasn’t really changed dramatically that much. Now, “yes” in some companies where there were twenty people two years ago outside U.S. boundaries, today there are six hundred people.

But if you were to look and say, “Let’s take a look at their peers and see if everybody’s doing that.” You may be surprised to see that not many of them have just yet. So, I think we’re still in the earlier stages. But I wouldn’t call it early stage anymore. Let’s say: “We’re still in the earlier stages of this.”

CM: You mentioned that more than just IT-related processes are now being globalized. Is neoIT responding to that trend and broadening its advisory offerings?

Vashistha:
Very much so. Two years ago clients were routinely asking us to help them figure out how they can lower their costs on an IT project. Now that the facts behind services globalization have become so well known – the decision making has moved up. I am giving presentations to CEOs and board of directors more than I’ve ever before. In fact, prior to 2005 we never made a presentation to board of directors.

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IBM’s Mass Media Man

It was a classic bad news, good news situation. Back in the pre-Napster days, Saul Berman told a music industry client that some customers would soon be downloading the company’s product — without paying for it. The client immediately envisioned a worst-case scenario. “They thought that it was the end of the world,” Berman recalls. “They couldn’t understand how they were going to make any money if customers were getting music for free.”

The good news, Berman explained, was that it was still possible for the client to generate plenty of revenue even if customers were treating its products as freebees.