Question-and-Answer Session
Operator
Thank you, sir. We will now begin the Q&A session. (Operator Instructions) Our first question comes from Julio Quinteros with Goldman Sachs. Your line is open.
Julio Quinteros - Goldman Sachs
Hi, can you hear me?
Lynn Blodgett
Yes.
Kevin Kyser
Hi, Julio.
Julio Quinteros - Goldman Sachs
I'll start on the offshore question and what I'm trying to understand is, as you think about the impact more from a revenue and a gross margin perspective as opposed to the benefits down the road, how do we think about that relative to the trend in organic growth? Obviously this headcount that you are going to put on is coming in. Mostly it comes in at a lower bill rating. Correct me if I'm wrong and it is something different.
Typically, on top of the expenses that you have to incur due to the transition, is some revenue deflation and drag also introduced into the model.
I’m trying to understand that and relate that back to the comments for fiscal year ?09 lower-end organic revenue growth. Is that a part of that view or is this something more macro, and if you could parse what the drag is of the demand environment versus what might be the drag that's sort of self-inflicted as you move more people offshore?
Lynn Blodgett
Okay. Thanks, Julio. I'll start on this and then, Kevin, you can finish. The issue with the revenue growth in terms of us saying that we think it might be towards the lower end of range, that is only related to the fact that we're seeing pressure on the transportation-related volume and the issue of revenue cannibalization that you raise in terms of moving work offshore. Most of work that we're moving we have already moved the lower level jobs for that work offshore. So we don't expect a significant decline in revenue. There may be a little, but that's not what's creating that issue because we're moving work that's already -- the base work has already been moved. We're now just moving some of the expenses that we incur in servicing network. Kevin, if you'd like to add?
Kevin Kyser
I think that's right. Obviously we don't think this will cannibalize the revenue in any way. We get paid based upon the amount of work we output and produce and these folks are not -- these aren't really billable type folks. We're getting paid based upon the amount of work that we output.
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