Ravi Kumar: Moshe, I have to say this, the healthcare ecosystem for Cognizant is the strongest in the market. It’s an industry which will go through a significant transformation. So we are on a pole position in healthcare — in the healthcare economy, all the way from payer, provider, pharma benefits management to Life Sciences. We have an extraordinary strength of platforms plus services. Just look at the order of magnitude of what we do on TriZetto. 250 million plus claims on an annual basis approximately, 100 million plus enrollments on an annual basis. We do 3 billion electronic data interchange transactions. So we have an extraordinary story of TriZetto, 60-plus percent of the U.S. insured population goes through our platforms.
It’s the fulcrum and the nucleus of healthcare ecosystem. So we’re going to invest and double down on it, and seize the opportunities which come on this transformational journey for our clients. This is going to be a sector which will significantly transform and we have an exciting clientele base across the spectrum. We’ve invested on generative AI. We have done multiple announcements last year of embedding generative AI, including our partnership with Microsoft on the OpenAI piece, which we have embedded into the entire stack. So we are very excited about TriZetto. I am actually doubly sure that, that is going to be an integral part of our healthcare strategy for the future.
Moshe Katri: Thanks a lot.
Operator: Our next question comes from the line of Surinder Thind with Jefferies. Please proceed.
Surinder Thind: Thank you. Just on the AI component and the potential acceleration that you may see as the year progresses. When you roll out these new products and services, is there a pricing conversation that you have with clients? Is there a way to price this differently? Can you command more? Or is it just that the expectation is you’ll get a lot more in consulting services down the road? Can you maybe provide some color on that?
Ravi Kumar: Surinder, that’s a great question. Thank you for that. I would say three swim lanes Surinder. The first is the last — the last mile holding. The ability to take foundational models, which are available in the market and create a funnel to make them enterprise-grade which is the work you have to do on the last mile, all the way from managing, governing and orchestrating large language models or foundational models. And that’s a variety of things. It starts from accuracy of the models to reducing hallucinations, to doing performance cost optimization, to reinforced learning unlike software. Generative AI goes through reinforced learning, even after you implement it because it learns through the process. So there is a lot of heavy lift needed to take the foundation models and make it production-grade, enterprise grade.
And I think we have a unique opportunity, and I’m excited about what I have actually seen with the platforms we have built, the platforms we announced to the market, and how we are helping our clients to get there. We have 250-plus prototypes running, we have 350-plus in the pipeline. Whenever those CapEx cycles trigger off, I think we are in a good position to monetize on that. That’s the first swim lane. So it’s — you could call it consulting in your language the way you put it, but it is actually a bunch of things we want to work on. There is a second swim lane, I would say, which is about how do you apply it to your productivity. And that kind of switches on to two things. How — what does it do to developer productivity? What does it do to technology life cycles, all the way from design to testing to writing code to all of it.
And I call them to subsegments because one is to cannibalize the business you do and share the benefits with your clients. The second is to go and cannibalize or rather go and propose something provocative on the work. We don’t do as an incumbent, but we could actually create better productivity to our clients. And one of the reasons why we are winning those large deals is that’s a pivot on our large deal story. We actually go and disrupt client landscapes with — which is where we are not incumbent with not just labor arbitrage, but arbitrage powered by AI. So I would say there are opportunities all through, all the way from applying it to the landscapes to — applying productivity to the technology life cycles, be it our business, we do or be it where we are not an incumbent.
And I would say this is a pervasive opportunity. It will be a short — it will be a slow takeoff, but it will be a short cycle of a slow takeoff, and it will then get into a sharp S-curve, as I mentioned on my preliminary comments. So it’s a very pervasive technology. It diffuses very fast, and it has a very good distribution network. So I’m excited about the prospects, excited about the investments we’re making, excited about how we’re staying relevant with our clients. We’ve also embedded it into our platforms like TriZetto. So we are equipped to seize these opportunities as the CapEx cycles of generative AI trigger to enterprise grade work.
Surinder Thind: That’s helpful. And then as a follow-up, just to kind of tease out what you’re seeing in the discretionary spend environment. I guess the question I would ask is how much more can clients really pull back on that spectrum of spend? And then I guess the counterquestion here would be, given the relative economic resiliency, why aren’t clients spending more at this point? Like what’s holding them back? Like what do they need to see? Or what are they signaling to you of when they’re willing to perhaps take some risk?
