Managing Less? Progression or Regression

As you go up in any organization, it is expected that you are supposed to manage more resources. The thought process in Indian software service industries is to create hierarchy and make them accountable for getting the business or managing the business. But it is not the same way when you work with most of the IT shops of Global companies. Now we are globalised and flat hierarchies are order of the day. Even if you are managing more, question comes on how many direct reportees you handle? so it is not just the numbers under your umbrella but what extent you interact directly?