TTEC Holdings, Inc. (NASDAQ:TTEC) Q4 2022 Earnings Call Transcript

Dustin Semach: It really just to be clear, really a continuation of kind of impacts that we had in 2022 because hyper growth continued to grow in 2022. If you go back to the second half, we talked about it being muted and so it came down, but still grew and then that now has created a downstream impact into ’23. And just the only other point, Vince, I’ll fall on to Shelley’s comment. To give you an idea in terms of – just to put a pin on the consolidation is that our top 10 grew roughly 4%, and that’s including the decline in pandemic related volumes in 2022, and you’re looking at a number for 2020 in the neighborhood of 14%, 15% for – excluding the pandemics. That gives you a sense in terms of how we’re consolidating at least particularly where we play with large enterprise customers, where we have significant scale.

Vincent Colicchio: Thank you.

Operator: Thank you. Next question is from the line of Joseph Vafi of Canaccord. Your line is now open.

Joseph Vafi: Hey, guys. Good morning. Just maybe a question on cross-sell in 2023. Are you looking at cross-sell between your two divisions any differently? I mean it feels like Digital has got a kind of a wider opportunity with cloud migration, emergence of AI potential to maybe move into adjacencies outside of CX and that business gets more strategic inside enterprises potentially be able to drag along more CX volumes? Just how are you looking at that overall dynamic here this year? Thanks.

Shelly Swanback: Well, I think there’s two things. The first thing I would just say just within our digital business, certainly, if you look at practices like our AWS practice to starting to see opportunities to be on just helping our clients with AWS Connect, right? The services that sort of surround that part of their platform. And so we’re starting to see – we’re starting to do some work and expand those services within that practice. I think more broadly in terms of cross-selling Digital and Engage. This is one of the reasons I’m really excited to have Dave on the team. And we’re being very thoughtful about those opportunities. And absolutely, we have enterprise clients that we serve from an Engage perspective. And as they began to modernize their technology platforms in the CX arena, those are opportunities for us.

And in fact, Dave and I are working on some of those together as we speak. And so I do think that will be an opportunity. We’re obviously very focused on the opportunities that Digital this idea of the distinct opportunities inside Digital and Engage as well.

Joseph Vafi: Thank you.

Operator: Thank you. Next question is from the line of Cassie Chan of Bank of America. Your line is now open.

Cassie Chan: Hey, guys. I just wanted to ask, what are you guys baking in for your 2023 outlook in terms of your onshore and offshore delivery mix, as well as some attrition metrics around that. And for your offshore, I know you guys talked about continuing to build out your offshore geographies. I know you added three more. I think you guys said and grew 60% in 2022. Are you expecting a similar pace in 2023? And is this like replacing some of your onshore delivery centers? Thank you.

Shelly Swanback: I’ll start. So the 60% was a reference to growing our delivery footprint inside of Digital, and we definitely will continue to scale that footprint. Certainly, on the Engage side, where we plan to add four to five new geographies this year. And those will – as we sell into that demand and open those geographies, we expect the pace of that – those offshore services to increase throughout the year. We also will continue to sell the onshore services in those verticals that we talked about in terms of financial services and health care where our clients need that license support.