How will the 2023 calendar year play out? So far, we have a mixed signal…
Earlier we said that macros have a certain level of uncertainty. I don’t think it has changed. Based on what I’ve read (on this basis) from some of the big companies in the tech sector, there is this macroeconomic backdrop that has caused a certain slowdown. I do not have any questions.
That said, we just finished a record quarter in (deal) bookings. In my view, some specific companies and industries have definitely cut or cut discretionary spending. However, the overall outlook for the technology services industry remains strong.
Can you give us some pointers on closing deals? Will there be more cost take-out based deals?
Balanced net new and renewal deals. I’m happy with the relationships we’ve built over the years that allow us to easily convert existing (deals) into larger deals.
There is a certain level of integration in the market. I think (we’re seeing more and more cost-based deals now). Quarters don’t trend, so I’m always a little cautious about that.
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There are increasing opportunities to help clients reduce operating costs.What are your client budgets for 2023?
It’s a little premature to talk about client budgets, as the next budget season starts in three months. However, some of them have already completed the budget process. I talk to CXOs at large companies every day.
What I feel is that technology is still the driver of company efficiency and performance. So companies aren’t cutting (overall) technology spending until there’s less uncertainty…but there’s more time (time) between decisions being made and being implemented in the field. You can see a little slowdown here.
I call it a slowdown in the launch of these large programs.
How should we view the 0.6% contraction indicated by the guidance range?
We’re talking about a company that has grown 45% in the last 10 quarters. We had an outstanding performance in bookings this quarter. Second, a little bit of volatility or one or two of the sectors could be exposed (to a slowdown). That gives us some unseen growth in the quarter, but no trend.
Why did you promote your record recently? What other steps are you taking to attract top leaders?
We have invested heavily in our people, whether it’s in-house talent that creates opportunities for growth, or bringing in talent from outside. The arrival of a new Chief Operating Officer is a way to look really agile or improve delivery excellence…we just keep improving the[performance impact].
What is your margin outlook? What are the levers for improvement?
We have made significant investments in several areas. We have invested in IT and automation. That drives efficiency. Whatever we recommend to our clients, we do it for ourselves. Our operating margin of 16.3% for the quarter is our new baseline and continues to improve. I’m here.
