Most India based IT services companies have realized the need to spin off their staffing & consulting business separately. As most of us know that the revenue & profitability for IT services companies is through the offshore business, onsite consulting is more to manage the offshore business.
With this model they are constrained and not being able to
a) Sell high value onsite consulting services (eg. IBM or Accenture or Capgemini or E&Y)
b) Branded as offshore partner hence would get offshore business only
c) Forced to charge blended rate even for small gigs which is very low for a senior resource
d) Not able to attract senior resources due to positioning of the company in the market
Most companies have identified this pit-fall and have separated their consulting wing from the offshore projects wing. These 2 entities operate at arms length. Advantage with this model is that the consulting division can have completely different revenue & profitability targets compared to offshore division. Their hiring, pricing & placement policies are more aligned to market demands. This concept is very powerful and makes a difference if you are selling high value services like ERP, CRM, Business Process consulting.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment