TTEC Holdings, Inc. (NASDAQ:TTEC) Q1 2024 Earnings Call Transcript

Shelly Swanback: Bill tightening and budget tightening, okay. Well, so far, Jonathan, as we’ve talked about with very few exceptions, the offshore work that we’re adding is actually – it’s not a movement of onshore work offshore. So it’s actually net new volume, net new business from existing clients or the new logos that we’re adding. And don’t forget, a large percentage of our work, actually, almost 40% of our work comes from regulatory – regulated industries and pub sec where the work is required to be onshore. And so I think – and we’ve talked about that, obviously, in the past. And so, so far, what I would say is the offshore work that we’re adding is just that we’re adding work. It’s not about – it’s not about taking work from onshore to offshore.

In financial services, in particular, I’d say, it tends to be more nearshore work. We’re starting to see some interest in South Africa and healthcare, lots of interest in South Africa, as an example. So far, what we’re seeing is as additive, it’s not cannibalizing our onshore work. Keep in mind, a lot of that onshore work, as I said, it’s regulated. It’s licensed work. So the clients either can’t take it offshore or choosing not to.

Jonathan Lee: Got it. That’s helpful. And just as a follow-up, how much of your ‘24 revenue outlook is already contracted? Can you talk about any change in visibility you may have seen in the quarter?

Shelly Swanback: Well, so what we talk – so the backlog numbers that Kenny shared on the Digital side, we have 80% of revenue in backlog today, which is actually slightly higher than where we stood this time last year. Keep in mind on the Digital side, right, sort of the foundation of that revenue base is our managed services. So those are long – those are longer-term contracts, where we have a very high renewal rate and then confidence in terms of our digital plan based on the bookings momentum in professional services. On the Engage side, as Kenny shared, our backlog is 96.5% to the midpoint. And last year, we were right around 97%, so very similar to where we were this time last year.

Jonathan Lee: Got it. Thank you.

Operator: Thank you for your questions. That is all the time we have today. This concludes TTEC’s first quarter 2024 earnings conference call. You may disconnect at this time.