If most of your customer base are in developed economies but most of your cost base (employees) are in developing (offshore) economies, then your business is acting as a drain on developed economies and a boost to developing economies. Hence it should come as no surprise that your existing customers have less money to spend. If growth is desired, perhaps it's time to seek out new customers in developing economies?
On a side note, do photos of senior management generally look less flattering when accompanying poor financial results?
Biting the hand that feeds IT
