And, as we discussed in the past some companies aren’t in a position, where we could make that happen. So, that’s what we’re discerning on, but there’s no, there’s absolutely no, barrier from an internal integration or access to capital perspective or what appetite, frankly.
Rob Young: Okay. That’s great.
George D. Schindler: Yes.
Rob Young: I’m curious about the pace of hiring and the restructuring I know the emphasis has been on your global delivery. You’re growing the mix there.
George D. Schindler: Yes.
Rob Young: It is attrition slowing down, and then, I’m just trying to maybe get drive to the impact on utilization and eventually margins from the hiring and maybe a different hiring environment?
George D. Schindler: Yes, well look the turnover continues to be below the industry average, but our turnover is also well below just looked at these numbers, well below the pre-pandemic levels. And that’s important to note because if you look at where we were just right before the pandemic, of course, it dropped during the pandemic, and then rose again. But now we’re back below where we started even before the pandemic. That does have a — it’s an opportunity for us because then, it allows us to be, a little more discerning on the hiring. At the same time, of course, hiring has eased in the difficulty of getting the hires. So, we can — all this adds up to, we can be really focused on keeping the utilization high, not hiring in advance of the demand, having to hire as much for replacement. And so, that puts us in a better spot from a talent perspective.
Rob Young: Great. And then, that growth in or the emphasis on hiring in global delivery, I assume that’s mostly in India. Is that become an easier place for you to find good talent? Are you relatively given that attrition is low and it’s better hiring environment and visits are up 2x from last year. Are you able to get the people that you need, or is it easier to get the people you need relative to during the pandemic?
George D. Schindler: I hate to say easy, because it’s a talent is always is an important one. But yes, it has eased, our value proposition, particularly in India, like I said, I was just there. It’s a pretty strong value proposition. And so, we’re doing quite well. And remember though, we also look to build our own. So, we bring a lot of individuals, very talented individuals out of school, put them through various training programs. So, we can also build our own. And so, it’s a combination of those factors.
Rob Young: Okay. And last little one, and the year budget flush, given government is so strong. And, I mean, I know there’s the looming shutdown again, but is that a factor at the end of the year across your business or does the macro change any opportunity for budget flush? And I’ll pass line.
George D. Schindler: Yes. Are you asking from Q4 or are you asking for Q1?
Rob Young: Yes. So, I mean, at the end of the year, so fiscal Q1, I guess.
George D. Schindler: Yes. So, actually the government fiscal year was in the U.S. For example, was the same as CGI’s fiscal year. So, we saw a little bit of bump from that, but no, I don’t think you’re going to see a bump from that specifically here as we move through. I think it’s going to be more of the other factors that I mentioned around policy initiatives and around stimulating the economy.
Rob Young: And outside of government, is there anything budget flush wise?
George D. Schindler: Well, unfortunately, that it’s not so much budget flush, on the commercial side. Unfortunately, what we’re going to see, I think, a bit of is that, at the end of the year kind of slow down temporary shutdowns of various clients where they just slow down all the projects, until the beginning of the next year. So, I think it’s going to almost be the opposite of a flush.
Rob Young: Okay. Thanks. That’s very helpful. I’ll pass the line.
George D. Schindler: Yes.
Operator: [Operator Instructions] Your next question comes from Daniel Chan from TD Cowen. Daniel, please go ahead.
Daniel Chan: Hi, George. I just wanted to dig into a point you made earlier about the backlog. Can you give us a sense of where you are in converting that managed services backlog into revenue? And these expectations both for organic growth to accelerate from here as that backlog gets converted, or have some of those macro factors that you pointed out kind of temper that expectation?
George D. Schindler: Yes. That the — I think your last point is a true one. We’re seeing some of that managed services from the beginning of the year already come into some of the revenue, but the, it’s being counteracted by some of the macro trends we’re discussing. Having said that, we just had 60% of a very strong bookings quarter 114% come in to the backlog. And so, that will be working its way through over the next couple of quarters. So, it really is going to be, like I said, I think the tailwinds will more than overcome the headwinds as we move through the year. But point in time and when that happens that’s something we’ll have to stay close to.
Daniel Chan: Okay. That’s helpful. I also wanted to double click on a point you made earlier where your new businesses bookings were 37% this quarter, and that’s the highest mix you see in this year, which is great to see. So, anything to call out there in terms of the new business mix being so high, which seems to be counter to what we’re seeing in the macro without the uncertainty?
George D. Schindler: Yes. I think it’s really a matter of the investments we’ve been making in getting our story, our message out to the market. We’ve got targeted campaigns, to bring the value proposition we have to both new clients but also existing clients in new areas that we have not worked in. And so, I think it’s just a realization of some of the investments that we’ve made over the past a couple of years.
Daniel Chan: Okay. Thanks, George.
George D. Schindler: Yes.
Operator: There are no further questions at this time. I’ll turn it over to Kevin, for closing remarks.
Kevin Linder: Thanks everyone for participating. As a reminder a replay of the call will be available either via our website or by dialing 1877-674-7070 and using the passcode 584974. As well, a podcast of this call will be available for download within a few hours. Follow-up questions can be directed to me at 1905-973-8363. Thanks again everyone, and I look forward to speaking soon.
Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.
