Tobey Sommer: Okay. And this is something I struggled with. As you grow the interim business up to $1 billion, maybe use that as a target, what does the associated increase in your total addressable market look like? And I know we could look at F&A or IT, and kind of those numbers are established and out there. But if you’re going to continue to hold tight to the idea that you’re going to have among the highest bill rates and a focus on that part of the market, those sizes of the TAM aren’t as readily available, but you might be able to help us with that.
Gary Burnison: Well, that’s for sure. I mean, it is definitely — it’s definitely more art work for sure to try to triangulate to that. I think getting that exact percentage is very, very hard to do. But I do think we do need to stick to the upper end of that market. I think that’s where we have the most revenue synergy and the ability for cross referrals and the ability to feed into our global marquee and regional accounts. We look at the total addressable market for Korn Ferry at $250 billion, $300 billion. And the two big pieces of that would be, number one, around training, learning, development today, for Korn Ferry, that’s probably 10%, 11%, 12% of the firm. I think we’re completely undersized in what that can be.
We develop over 1 million professionals a year. I think that’s a big opportunity. The other big part of that market would be what’s generally referred to as staffing. I think, we would need to stick at the very, very high end of that. So just rough numbers, I mean, if you think that the addressable market for Korn Ferry is $250 billion, $300 billion. I mean you know the market better than I. But I think that $1 billion would still be a relatively small percentage of the high end of that market, for sure. But we — but Tobey, we have to stick at that high end. I do not see us going down. We just — we don’t get the — we don’t enjoy the revenue synergy and the revenue uplift. So, our view now is to stick with technology, finance and accounting, operations, supply chain and HR.
And when you look at that interim business today, it’s predominantly in the United States. And so, you would also have to say Korn Ferry would need to be looking at other places in the world where there’s clearly opportunity. But we’re very mindful of that question and the implication and where we should really be playing there. It’s a good insight, good question, and it’s certainly one that we consider pretty seriously, for sure.
Tobey Sommer: Thank you. If I could sneak one last one. And I’d like you to expand on your comment about an in-sourcing trend impacting RPO. How do you think that will evolve? And is there — is there evidence of recruiting, in-sourcing sort of a reaction to the high — the great resignation, and is it impacting, or do you think it may any other aspects of your business in the market?
Gary Burnison: No, I think it’s — we’re seeing it really within RPO. And when — I really do think that in this great rush, this great resignation, where there was this mad dash for talent, recruiters were the hardest people to recruit into organizations and companies. You’ve seen the stories about them, I’m sure, particularly in the technology — for technology companies. And I think that organizations really staffed up for growth and scale. And I think there is — clearly companies have pulled back. And rather than downsizing, for example, in the HR area, as an example, not to pick on that, but rather than down sourcing, they’re taking that reduced — that reduced capacity, that reduced demand and filling it internally.
