On the OpEx front, the focus for me internally is to keep the growth rate lower than the revenue growth rate. So you’re going to see leverage on that front. Now, there will be times when you’ll have to invest, but that is my focus right now. On the COGS side, as you can see, we’re in all these different geographies. We’re scaling in each of these geographies. And as we scale into some of these geographies, some of them identified and follow the sun strategy, you’re going to get some benefits there. But as far as the focus, again, is obviously go back to customers, but operationally also reorganize ourselves. We have T&M, we have pods, we have fixed price, we have the pyramid. There’s so many operational aspects which we can work on.
And, Leonard, do you want to talk about pricing?
Leonard Livschitz: You just covered it. I don’t want to double down. Actually, I want to walk you a little bit on a visualization of pricing to cost and back, because there are two things actually very well connected with each other. In order to us get to the higher profitability, it’s not directly margin related, but it’s a contract related, right. So pods, fixed bid delivery performance associated with a certain major milestone expending budget signing now, longer term budgets, we see that happening. It doesn’t mean that individual rates, for example, are going to be aggressively moving up. I mean, the market is still, I would say, demand driven than supply. And the value we’re bringing, while we are increasing some of the basic rate, we’re offering more and more system, which I just described with which Anil pointed out, which ultimately brings a better architecture of the team structure.
In other words, within the team, our cost benefit is evident to us, but for the customer, it’s a result driven. So they’re getting better efficiency with understanding their pocketbook spending without constantly going back and forth and looking at each individual rate. In many cases, also, we gain the trust of the customers sufficiently that they allow us to pick a proper tip formation. And it’s getting more and more on the scale. That also helps still, all the evils, right, moving from Eastern Europe to Central Europe, scaling the number of offices, opening offices in India, that’s well understood. But our model of 2020, no matter how difficult it sounds today with where we are, it’s unrelenting pursuit. And I see the trend is coming.
The numbers can’t say there yet, but judging by the contracts we’re signing, I’m quite bullish.
Zachary Ajzenman: Thanks for all the color.
Leonard Livschitz: Thank you.
Anil Doradla: Thank you.
Operator: Thank you, Zach. Next question comes from Puneet Jain from JPMorgan. Puneet, your line is open.
Puneet Jain: Thanks for taking my question. I wanted to ask about GigaCube. It looks like great progress in financial services. The vertical was up nicely. Can you also share like the contribution from other verticals such as healthcare? And do you plan to share progress like you make in India, in Europe, as well as smaller verticals on a quarterly or annual basis there?
Leonard Livschitz: Anil, why don’t you talk about…
Anil Doradla: [Indiscernible] So as you see, the other segment was about 14.5%, right? And that had a nice growth. So what you’re going to see, starting from next quarter, we’re going to break down the other segment because we’re going to have the healthcare part. So healthcare life sciences, that’s becoming an increasingly bigger part. That has actually been one of the contributors in our growth. And as we evolved in the course of the year, some of the sectors that you talked about, financial services, I mean, there’s a lot of activity going on there and we’re bullish on that.
Leonard Livschitz: So Puneet, that’s a formal way – informal way. I like to have statistical significance before I claim the flag at the top of the hill. I can tell you confidently that in the fintech world, our investment is turning to the factual material improvement. When we talk about pharma and healthcare, the number of accounts is growing. But I can say that we are a dominant player yet. We understand the capability of learning new ways of adding business value. You will see that trend. There are wealth management and insurance part of the BFSI, right, for a long time, we had one of a very large partner on the wealth management. Those segments will grow too. And why we grow is because you guys, to some extent, help us to assess four years ago that what does it mean to be a public company, right.
That you need constantly to challenge yourself, not just on the growth but on the hedge, right. How you build a business. So we were very heavy, depending on a brick and mortar store, that’s a long history we were having, depending on certain brands. Again, it’s a history. The tech is also diversified. But I would give the more specific material content when I see at least two, three quarters of consistent signing of the new clients. And I think the biggest right now division for me is B2C application and B2B application. We’ll continue to break it down, as Anil said, as we feel that they’re statistically significant.
Puneet Jain: Got it. Now that’s very helpful. And let me ask second question. So now that the macro headwind appears to be behind you and you’re seeing stabilization in some of the large customers. So some of those, like, the largest of your large customers, like, I think they peaked at somewhere around like $30 million, $35 million, maybe $40 million. How high is addressable market at those clients? Like how large those customers can get given your current service mix?
Leonard Livschitz: Yes. So you’re getting me into trouble.
Anil Doradla: All right. There is quite a bit of a ceiling on those clients. Why? Because we’re changing our attire too, right? Maybe the market cap is still not there, but we’re much more mature company, not just from performance perspective, but the stable capability perspective and resilience perspective, right. Every client, every large client, they look not just into the supplier capability, but again, hedging against certain unforeseen events, right. So I think they’re getting more comfortable without reach and without touch, right. So I would say that the ceiling is less driven by our capabilities, which are proven and more opening up when people are start become comfortable that coming back to the GigaCube strategy, one day, we are $1 billion company.
