George Schindler: I think it’s a combination of a few things. Yes, we definitely are starting from a different base. So we’re still building that expertise. And so, there’s some natural uptick there. I think the other is that we really are focused on the areas that clients are spending on. Now, they do need help on sustainability, they do need help on the business model transformation. Because what we see is clients aren’t just looking at the here and now. And the current economic landscape, again, depending on the economist you talk to, but they’re really focused on what’s the next business cycle. And they want to come out of this business cycle in a stronger place. And so, it’s more pointed, focused efforts, and we’ve been investing in those areas, given where our starting point was.
Jerome Dubreuil: Congrats for the great results.
Operator: Your next question comes from Thanos Moschopoulos from BMO Capital Markets.
Thanos Moschopoulos: George, I think you’ve touched on this with some of the prior questions, but maybe you can be clearer. On the macro, clearly, you’re still seeing good spending environments. But any change at all with customer behavior, the deals require greater level of scrutiny and sign of, the sales cycles longer. Are there any specific pockets where you might be seeing some of the macro weakness? Or is there nothing really to call out on that front?
George Schindler: Yeah, no. I think it’s a good question. And we’ve been anticipating a shift, we’ve been talking about a shift, and we definitely see that. We see more immediacy in the demand regarding those cost savings and sharper business case I’ve been talking about for the last couple quarters. So, there is more immediacy there. More cautionary in some of the broader digitization initiatives. We don’t see anything stopping, but we definitely see a little more caution there. In general, those cost savings, part of that is some of the managed services deals that we’re doing and some of the IP deals. That’s typically a longer sales cycle in any environment. We actually see those shortening because there’s more immediacy for that.
I can tell you, I had a discussion with a COO of a large company. And when we really talked about the managed services opportunity, he sent an email literally five minutes after the call to his team and connected, our teams have that discussion. So those tend to be moving a little bit faster. The SI&C deals, which are shorter duration, typically shorter sales cycle, that’s lengthening a little bit because of some of what I talked about, some of the caution. So, overall, we’ve anticipated this shift. Our go-to-market, our hiring, our staffing, everything is aligned to this. And you see that in the results of the bookings. But we definitely see that that shift happening. On the managed services side, it’s pretty widespread. All industries, all geographies.
On the SI&C side, it’s strongest in government and the financial services. A little bit stronger in North America, as you might expect, than Europe on the SI&C side. Weakest probably in manufacturing and retail. So, the SI&C side, you see some weakening there. But counteracting that is very strong on the managed services side, particularly in manufacturing. And then, of course, IP is strong in all markets. For us, it’s strongest in banking and government. Maybe that gives you a little bit of flavor what we’re seeing. Yeah, there is some shift. We’ve anticipated. We’ve been talking about it. And our teams are pretty aligned around that, which is why you see the growth in the booking.
Thanos Moschopoulos: Just a quick one on cash flow. Given that the mix is shifting a bit more towards managed services, should we expect room for further improvement on DSOs or not necessarily?
