Operator: Next question is from the line of Bryan Bergin from TD Cowen. Please go ahead.
Bryan Bergin: Hi. Good evening. Thank you. First question I have is demand by geography. Can you talk about pipeline and client spending plans across the U.S. versus Europe, maybe also based on what you have in backlog. I’m curious if you think the recent trend of North America weakness being offset by solid Europe performance is likely to continue, or whether that may change as you go through fiscal ’25?
Salil Parekh: Thanks. This is Salil. On the geography, as you point out, we had good growth in Europe in Q3, weaker in North America outcome. In terms of pipeline, we don’t share the pipeline split by geography. We do see a large deals that Nilanjan shared by geography, in good momentum, at least on the large deals on both U.S. and European side, but we don’t sort of specifically call out pipeline or outlook by geography within our business.
Bryan Bergin: Okay. Any reason that the current growth trajectory should change near term? Or should it remain somewhat consistent?
Salil Parekh: So there — if you look at our guidance for the remaining — for the full year, which is for the remaining quarter, it’s for the entire business. And we don’t have like a specific view that we share externally on the U.S. or Europe there.
Bryan Bergin: Okay. Follow-up on the third-party items. So another uptick here, just I think, over 8% of revenue now. Can you talk about what you expect third-party items to continue to rise as mix revenue or may this start to come down as you go forward and deal composition potential change? I’m just trying to think about sustainable level here as this has moved up meaningfully over the last couple of years.
Nilanjan Roy: Yeah. So as we’ve talked about this before, as we are involved in larger transformation deal, the longer-term transformation deals across the entire IT stack, infra, cyber, application development, data. I think many of these are bundled deals, which have software, hardware elements in it. And in a way, that’s also giving us the benefit of taking these larger deals off the table. And at the same time, we are able to manage our margins as well. So we are able to navigate both the impact of this. So we have no number in mind to say that this is where we target or this optimal level. As long as we are able to get incremental market share and get margins in line, which is what the program of Maximus is also about, I think we are comfortable with that.
Bryan Bergin: Okay. And just last one for you, just on the resourcing plans. Can you just give us a sense how you’re thinking about resourcing plans near term? I know it was down again sequentially about 2%. I’m just curious if you’ve kind of reached a stabilization point?
Nilanjan Roy: Yeah. So we still have a lot of headroom, and we’ve talked about it in the last two quarters that our utilizations are still quite low. We’ve operated at much higher utilization, 84, 85 and enough cost in the COVID years, maybe 87, 88. So that’s one, and we are still below 84 as we speak. We also have on-tap demand fulfillment from our fresher model so we can absorb freshers in very fast because we don’t have to now just go for colleges and wait for the annual cycle. Now we have a source of supply from off campus as well. And with attrition slowing down, there is a lot of talent even from a natural basis available across the country as well. So I don’t think that’s a big concern for us.
Bryan Bergin: Good luck to you, Nilanjan. Thank you.
Nilanjan Roy: Thank you.
Operator: Thank you. Next question is from the line of Keith Bachman from BMO. Please go ahead.
Keith Bachman: Hi. Thank you. I wanted to ask a couple of questions, if I could. First, on pricing, you mentioned specific segment of pricing. But I wanted to ask about, a, pricing on renewals. Are you seeing pricing pressure that’s different from past cycles at the time of renewals? And then also, you have good deal signings for large deals. I wanted to talk, if you could address pricing for those large deals and how that might be impacting your margins? And then I have a follow-up, please.
Nilanjan Roy: Yeah. So I think — in fact, we’ve seen much better pricing stability over the last few years. And in fact, we are also very conscious with our entire value-based selling program that we are not leaving any pennies on the table when we are going after deals because in the hubris, we want to make sure that we are not leaving a lot of dollars on the table. So I think there’s a lot of work happening there. But overall, from a competitive positioning, pricing really has been stable across. And I think that’s reflective of the cost pressure that people are also conscious of their margins and where they are. So in that sense, there’s no more concern. We, of course, have the one-offs, etc., of specific clients, specific segments where they are in trouble. And of course, they may want to rebate some of that. But overall, it’s not been something which is really concerning us in that sense today.
Keith Bachman: Okay. Then my follow-up relates to duration. This was asked a little bit differently earlier in the call, but as you’re getting good signings of large deals, is the duration of those large deals extending so that investors should be thinking about the book-to-bill being a bit longer?
Nilanjan Roy: So we don’t give out the duration of the deal wins. So we have, of course, deals which come with longer-term periods, and some of our — you could see some of the announcements we have made, but nothing specifically whether they are going up across. So we don’t comment on that.
Keith Bachman: Okay. Then maybe I could sneak in one more. If you just look out over the next couple of quarters, if you could just help us, I’m not asking for guidance, but just the puts and takes on margins that we should be thinking about. You’ve already said that utilization perhaps is a source of at least I heard it is potential margin upside as utilization goes up. I would think that wage pressures would be less going forward, but not sure how mix fits into that. But anything you just want to highlight beyond the March quarter, but just the puts and takes that we should at least be considering as we’re creating our margin profile over the next, call it, four or five quarters?
