[caveat] I am not a consultant [/caveat]
The company would have to be private, as if it was publically owned shareholders would ask - why have we crappy revenue? Wall Street likes profit margins and short term gain.
Your reply is probably that there would be a larger number of projects going to this company since they undercut everyone else. *Maybe* this is the case in government projects. However, do companies not also consider track record and the chance that the company will be around in 10 years time to build up a relationship?
Also - the low cost business model is centred on "no-frills". Is "adding value" not at the heart of Consultancy - and who would work for a company that did not provide the same perks as the other firms?
Finally, when Indian Consultancy firms build global brands and they offer high value for low cost - then you can't compete in that space any more.
Happy St Patrick's day, from Ireland.