Thomas Hogan: Yes. The talent we’re looking for easy is used, but we definitely have a multi-tenant approach to the way in which we bring talent to the organization. We’ve involved university hiring programs globally, great success in India and Latin America as well as the United States. We’re constantly making sure we have the right value proposition for our team. Quite honestly, great talent once you work with great talent. So our competitive advantage of environments, project work, and the way in which we direct culture here, we haven’t seen any challenges on hiring individuals. And with a multi-tenant approach and a multi-geography approach, there’s not one specific area where it’s “easier” to find talent. Across the board, we compete quite nicely against the industry peers for talent.
Operator: Thank you. Our next question comes from the line of Puneet Jain from JPMorgan.
Puneet Jain: Hi. Thanks for taking my question. I like to ask about what does like the EPS guidance imply for — assume for EBITDA margins this year? And what do you expect for utilization and pricing throughout this year?
Jeffrey Davis: So EPS, the guidance for EPS is — as it relates to margins would be potentially a modest increase to EBITDA. As we’ve discussed earlier, we’re looking to keep gross margins flat not down, but not up materially either, so that we can maintain that competitive pricing. But I do think that adjusted EBITDA as an example, we’ll have some expansion this year, although I think it will be modest as we’ve guided to a little bit lower than normal growth. So until we get back to that higher growth level, I think adjusted earnings or adjusted EBITDA will be modest in terms of expansion. But again, not negative, but expecting modest expansion. And then utilization will maintain and has consistently maintained over the average of the year at about 80%. So we’re — that’s still our goal, and we’ll be driving that this year. And again, historically, over the last at least three or four years, we’ve had really great success with that. We expect more of the same.
Paul Martin: And Puneet, with respect to bill rates, et cetera, we’re looking — obviously, there’s wage inflation as we talked about, and we’re looking to notionally offset those. Having the global delivery capability in our portfolio is allowing us to manage where the deliveries to offset wage increases with rate increases.
Puneet Jain: Right. And is there a way to estimate the benefit from higher offshore mix, like the deals or the new business that’s coming your way? Something that you wouldn’t be eligible to compete for a few years ago. So is there a way to estimate like how much that increased offshore mix is helping drive new wins for you?
Jeffrey Davis: Yes, absolutely. Including an existing accounts and existing relationships. We’ve got a number of large great long-term relationships that just a few years ago, as you point out, we’re already doing a lot of offshore work or near-shore work that we really couldn’t pursue because we didn’t have the capacity or even the capability. Now that we do, we’re actually taking quite a lot of shares. So a lot of the growth that we’re enjoying from offshore and near-shore is not only new relationships, clients, which almost always involve some level of offshore right on the gate, right at the beginning, but also actually in existing accounts, and relationships that we’ve had 10, 15 years, we’ve actually been able to take share away from some of the larger offshore competitors.
Paul Martin: And Puneet, just to give you some perspective, we’ve doubled the percentage of revenues done offshore in the last two years. And as Jeff said, we’re on a journey to 50-plus percent.
Jeffrey Davis: Operator?
Operator: All right. Our next call comes from the line of Vincent Colicchio from Barrington Research. Go ahead, Vincent.
