The document discusses challenges faced by IT services companies operating under the "Services 1.0" model and proposes a new approach called "Services 2.0" focused on engineering excellence, finding and retaining skilled talent, and taking a holistic view of business and engineering needs rather than a short-term focus on billing hours and costs. It suggests seeding teams with "uncompromising engineering brains" knowledgeable in Java and emerging technologies to systematically improve systems and processes.