Sudheer Guntupalli: Yes. Got it, Thierry. Just an extension of that, is the panic around the banking crisis completely behind us and going forward, do you foresee that there can only be an improvement in the demand situation from where we are assuming macro variables remain reasonably stable?
Thierry Delaporte: I mean there will be – again, predicting the future. We’ve been, over the last 2 years, a bit shaken up by some macro elements that we could not necessarily predict. And that has had a massive impact on a lot of what has happened after. So I’m – by definition, I’ll be cautious on that. But I think that a lot of banks still have reasonably good fundamentals. And they are very aware of the importance of technology for their own transformation. And so yes, it will resume at some point in time. It will restart with a lot of, in particular, a lot of the consulting activities that have been reduced and where they will need to launch those large program aiming at improving the efficiency of the organization and their KPIs and ratios.
Sudheer Guntupalli: Got it, Thierry. Just one quick one. The $1 billion investment commitment in AI over 3 years, is it fair to assume it will be largely in the M&A route?
Thierry Delaporte: No. It’s not fair. Sudheer, actually, it is – the majority of it will be organic. So this is organic. It is investment that we are already engaging now, and we will accelerate it steadily over the next 3 years – not 3 quarters, 3 years. Yes, there is in there a bit of [ph] budget for M&A, but we do not spend, if you like, the progression that we want to drive over the next 3 years to acquisition. It will come as a complement or as an acceleration, but we’re already in action now.
Sudheer Guntupalli: Thanks, Thierry. That’s it from my side. All the very best.
Thierry Delaporte: Okay. Thank you, Sudheer.
Operator: Thank you. We have our next question from the line of Nitin Padmanabhan from Investec. Please go ahead.
Nitin Padmanabhan: Hi. Good evening. Thanks for taking my question. I had a couple. So first, Thierry, if you think about the cut in discretionary versus, let’s say, the lower ACV of deals versus what we would have seen in the prior 2 years. Which do you think is a more significant driver of the weakness? Is it equally weighted? Or is one higher than the other? So that’s the first question. The second is how are Capco and Rizing sort of faring in the current environment? And finally, Jatin, your thoughts on margins going forward and what you’re thinking about – how are you thinking about compensation increases because we hear a couple of companies actually sort of pushing it out or sort of doing away with some of it. And so I just wanted your thoughts on these three things. Thank you.
Thierry Delaporte: So, okay. So Nitin, so the first question was on – actually, I’m not sure I can easily answer your question, whether it’s discretionary or ACV. By definition, what is ACV and not showing the difference with TCV is, by definition, short-term deals, and that includes mostly discretionary spend. So I would say you can call it the way you want. Those are short-term deals, right versus large deals, basically, okay? So that’s – I don’t know, Jatin, you have a better way to answer this first question.
Jatin Dalal: No.
Thierry Delaporte: The second one is about Capco and Rizing. Same comment I would have made, I’m sure I have made a quarter ago. It’s a consulting business. There’s where – there’s a lot of discretionary spend. It’s a little harder these days that it was some quarters ago. It doesn’t change at all the strategic nature of these deals. And I think it is always been clear for us that those were investments for the future and not tactical. So you have – we know consulting our early cycle type of business. So – and that’s what we are seeing. Having said that, actually, you get [ph] one, the fundamentals are good. Second, I take the example of Rizing because that’s the last addition to our organization, when was that, a year ago. Yes, about a year ago, – so a good year to go.
