Insight Enterprises, Inc. (NASDAQ:NSIT) Q3 2023 Earnings Call Transcript

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Operator: Thank you. The next question comes from the line of Vincent Colicchio with Barrington Research. Your line is now open.

Vincent Colicchio: Yes, Joyce, it was mentioned that offshore was leveraged to boost margins. Will that become an increasing focus for the company going forward?

Joyce Mullen: Yes. For specific services, Glynis mentioned the work that we’re doing to improve the structural profitability of our services business. We’re pretty pleased with the work we’ve done so far there. And as you might remember, we bought Hanu about a year ago, a year and a half ago, and we have been working to figure out how to leverage those global capabilities in all three regions. So, for specific offers and specific capabilities, we expect to continue to leverage India. And we have been doing that for quite some time, by the way, for our own internal back office primarily in Manila, and now we’re doing that both in Manila and in India.

Vincent Colicchio: And I came out of the call a little late, you may have mentioned, but the use of AI to improve productivity and programming, how far off is that in the future? Is there a line of sight to that?

Joyce Mullen: The future is now, Vince. It’s happening now. We’ve been really, really excited about the work that we’ve done. We launched Insight GPT about, I want to say, about six weeks after Microsoft did the open AI announcement in February. We’ve been using internal use cases to help educate our clients on what the opportunities and possibilities are in their environments. And that’s driven a lot of interest and a lot of client meetings and a lot of assessments. And that’s also driven some very significant opportunities to improve quality of data and data space for our clients, so they can leverage these analytics capabilities and also certainly some use case development and application development. This is absolutely an accelerant, we think, over the long-term or medium term, and we’re seeing it start now.

Vincent Colicchio: Yes, I’m curious about its ability to improve programming productivity. Any thoughts on that?

Joyce Mullen: Yes, well, we have – so the leader of Amdaris gave a number that is very exciting in terms of software developer productivity improvements. But, I mean, we’re hearing this over and over again from our partners as well, but somewhere in the 100 to 100 plus X improvements in terms of productivity is something that we’re aiming for. I wouldn’t say we’re there yet, but we have seen already significant improvements in productivity in the 20%, 30%, 40% range, primarily around quality checks, quality auditing, and just development time.

Vincent Colicchio: Thank you.

Operator: Thank you. There are no additional questions registered at this time. [Operator Instructions] There are no further questions at this time. We will now conclude the call if the team has any further remarks. That concludes today’s conference call. Thank you all for your participation. You may now disconnect your lines.

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