Ravi Kumar: Yes. That’s a good question, and I’m going to leave it to Jan as well to chime in. Over the years, IT Services has gone from a homogeneous landscape to a heterogeneous landscape, they’re different swim lanes. In an uncertain economic environment, if you’re going to see discrete study spend being a little softer. Large digital transformation engagements will start to become moderate in nature. But equally, you’re going to see cost takeout initiatives, vendor consolidation initiatives happening on the other hand, I would say that’s a different swim lane. But enterprises are continuing to invest because not only are they investing on the consumer side of digital. We’re also investing on the employee side of digital because employees today are interacting with their organizations on a digital platform because of the hybridness of how work and what places are.
So I would say it’s a duality of sorts. On one side, you would see softness. On the other side, you would see cost takeout and vendor consolidation kind of happening. Depending on the industry you look for, there are industries which have lesser tech and digital intensity and the industries which have higher tech and digital intensity. And some of them are using the digital platform to transform and deliver. In fact, I would say, digital technologies is almost like a deflationary force in an inflationary economy. So some of our clients are using digital technologies to do so. So it’s a mixed bag. It’s €“ because of the heterogeneity, I would say it’s a mixed bag; each swim lane has its own characteristics. Jan, do you want to chime in?
Jan Siegmund: Yes. Like I’ll give you a little bit more background maybe about our bookings performance and what €“ where we have seen the softness and geographically and by digital. We actually did have a relatively solid bookings growth in digital this last year, and I’m giving you full year numbers. It’s about I’m doing to 16%,18% or something growth in the digital bookings world. And then we saw actually the weakness by sector really concentrated, as you would expect in our Financial Services Group, where we saw the biggest decline in bookings volume for us. And as Ravi illustrated in his comments, it’s kind of almost in every industry where we’re trying to sort out, are we having some industries stronger and others, but we do have success stories by industry sector, and we have declines in industry.
So it seems to be a little bit client specific of what we need to watch out. You have talked obviously, now looking forward; we entered the year with one of our largest pipelines ever, basically. And now a lot of work, which is for Ravi and the market teams to achieve, is to convert that pipeline into qualifications and into bookings numbers. So there seems to be a lot of opportunity still out in the thing. Obviously, the mix of that business is shifting a little bit. We hope we want to drive a higher participation and higher bookings number for larger deals, which we haven’t had in the past, and that’s the true revenue €“ incremental revenue opportunity that we’re aiming to capture. And but there is still a very solid market out there. Even though the demand on a sequential basis has gotten a little bit softer, if that makes some sense.
So we’re going to be laser focused, obviously on converting this opportunity into bookings and then to revenues. But the underlying market remains attractive from my perspective.
James Faucette: That’s great. Thanks for the color of Ravi and Jan.
Operator: Our next question comes from the line of David Togut with Evercore. Please proceed with your question.
