neoIT top honchos resign, may launch own venture

Three senior advisors of neoIT, a Bangalore-based offshore advisory firm, have quit the company in the last one month. Senior Director Sabyasachi Satapathy, the second in command at their India centre, was one of them.

The other two senior executives who have resigned from neoIT include Shalabh Garg, who was a director with the company and Praveen Gupta, a senior advisor. Although the exact reason behind the quitting of these people is not clear, the trio is planning to launch their own venture, the details of which are expected to be announced shortly.

Satapathy, who has more than 14 years of experience in the outsourcing advisory industry, played a significant role in re-building the firm's India operations in the last two to three years, especially after co-founder Avinash Vasistha parted ways with the firm to start his own venture, Tholons. Satapathy has spent almost nine years with IDC (India) as the head of software services.

Satapathy said they (the management) have moved out of neoIT in good faith, and have no differences with the firm's management. "After a successful and exciting experience with neoIT for over five years, we decided to move on to pursue our interest in a broader market spectrum. As clients think about renegotiating long-term contracts, the focus is to develop a pre-emptive strategy for the service providers. We would focus on linking the supply-side service delivery with the demand-side strategy, which can potentially create significant value for the buyers and long-term client-provider relationship. We are in the process of finalising our firm's market approach and service focus."

The global sourcing advisory market is estimated to be about $800 million, and had been growing in double-digits for the last five years.

The industry, however, is expected to see a hit especially in a situation arisen out of the global meltdown as both the buyers and the service providers are cautious about their spending habits. Some of the firms with focus on clients' market (who advise buyers' on their outsourcing approach) include TPI, EquaTerra, McKinsey and Everest Group, whereas companies like Gartner and Meta Group focus on the supplies' market (the service providers).