Amit Singh: So we are definitely working a lot on outcome-based or pushing more and more outcome-based type of projects, where it’s more about helping the clients drive their top line and have their — and provide the right solutions for them to be competitive in their market rather than more focused on, call it, just a number of people and all of that. So we are seeing a lot of that change happening throughout our work. Obviously, all of this in the end, it’s still priced more on time and materials. If you look at our results, the way we operate, it just shows a higher fixed price and that actually is more some regulations related because in Latin America, a lot of our projects by regulation need to be priced as fixed price.
So even though they are structured as fixed price, they are put in sort of short time duration. So in reality, they act more like time and material, but for reporting purposes, they are more like fixed price. But beneath it all a lot more focused towards outcome-based and solution delivery. And that’s the trend we are seeing.
Joseph Vafi: Great. And then maybe I’ll just sneak one more in. I mean, the analysts here, we hear a lot about the macro, we hear a lot about the macro in the US. And I know you do have some business in Mexico and the rest of Latin America. Just wondering how clients in those geos are responding to the macro? Thank you, very much.
Amit Singh: Yes. It’s been pretty interesting. We’ve been super disciplined in Latin America to focus on the global clients. So especially Latin America, I would say, they’re real global large banks and some of the global retailers. And so we’ve seen pretty stable to growing demand in Latin America. A little bit on the FX for Mexico helps us on the revenue — and then the effects in other countries helps us on the cost of the services we export into the US. But generally, the clients — if we keep very disciplined on the right type of accounts, global accounts, we see the growth being pretty much on par of what we’re seeing elsewhere.
Joseph Vafi: Thanks, Manuel. Thanks, Amit.
Operator: We’ll go next now to Josh Siegler of Cantor Fitzgerald.
Josh Siegler: Yes, hi, good afternoon. Thanks for taking the call. So, year-to-date, has there been any shift in terms of the commentary from your clients in regards to how the macro is impacting demand for your services? And how do you expect existing client spend to change if the economy were to slow further? Thank you.
Manuel Senderos: Yes. I would say, again, from the type of industries that we participate in, we haven’t seen a shift down to spend financial services, especially the large ones and health care, which are as well pretty large. They have a big backlog of digital transformation work that they need to accomplish just to become competitive and remain relevant. So we haven’t seen that. We haven’t seen any low. We’ve seen actually very good opportunities to open up in new accounts and the new large banks, where they are pushing harder on the digital transformation. Our Latin America delivery model has become more and more interesting for a lot of accounts as well, as the geopolitical tensions in Asia and even in Europe show that there’s a lot of risk for them to have all of our things concentrated in one area.
So Latin America, all of a sudden becomes a very interesting place for them to start growing their work. So we’ve seen that openness really heavily recently. I don’t know if you guys have probably heard, but the like of Tesla, for example, is opening a new gigafactory in Mexico. So that type of mentality we are seeing elsewhere with other companies working on digital transformation, whereas before they would not think of doing things in North America that would go straight to Asia, maybe India or China. And now we see Latin America become very interesting for them. So it just makes our job a little bit easier.
Josh Siegler: Great. That’s helpful color. And then, I was wondering if you could expand upon — as you’re ramping up headcount, do you also expect to see any impact from wage inflation in the last few years has been pretty high, as everyone is aware.
Manuel Senderos: But I think we’re not really seeing that sign right now, but given how the tech industry has been evolving. Maybe we could see some tempering down or slowing down of the wage inflation. But that being said, in the past few years, when the wage inflation was high, we were also able to drive the higher pricing. So I think it goes very much hand-in-hand. But that being said, the overall demand for talent in our market, that always — that remains sort of high. So this industry will always have some sort of a stronger wage inflation compared to sort of rest of the market.
Josh Siegler: Understood. Thanks for taking my questions.
Manuel Senderos: Thank you.
Operator: And we’ll hear next now from Maggie Nolan of William Blair.
