Thierry Delaporte: Well, so first of all, Kumar Rakesh, our strategy that we elaborated back in 2020 was to clearly develop large accounts. We had, at that time, 11 accounts over $100 million, which was clearly lower than most in the industries, companies of similar size. And so we felt that — you cannot invest unilaterally across the board. You have to make choices. And that makes a lot more sense to invest into partnership, relationship with clients, that will allow you to drive significant growth, there’s a potential of significant growth. And that’s what we’ve done. It means that instead of — the cost of sale for very small account is higher. It is proven. We know that until a certain point in time, you are spending an abnormal amount of time to close very small deals, and not so much more time to close bigger deals.
So that’s a conscious decision to focus on less number of talent but be meaningful as a partner in these accounts, be their partner in the transformation. And that’s what we’ve done. So I give you two data points, Kumar Rakesh. One, if you look at the top — the accounts of over $100 million, we’ve doubled the number of these accounts in two years, right, from 11 to 22, as simple as that. Second thing, if you look at what we call our metal account, which are our top 80 accounts, they’ve actually resisted a lot better than the smaller ones. So I think it’s just a confirmation that this is the right strategy. We need to continue to focus our attention on those accounts where there will be growth over the next quarters. But also accounts that are shaping our industry and reduce the wasted investments in accounts where we will never go beyond the certain point in terms of size.
Kumar Rakesh: So the rationale behind the strategy is very well appreciated. My question was more around the timing of that strategy to bring into effect and full effect. Can that also be contributed by pulling down our revenue?
Thierry Delaporte: So let me address this point also. What have we done in terms of growth strategy over the last three years? The first two years has been a period of significant growth. There was significant growth in this market. We’ve grown all in, okay? And we have really got a good share of the growth. If you look at the growth during that time, company has changing scale, right, over 40% increase in size in 10 quarters. Market has changed, I think the cautiousness that we’re seeing. So this is not a growth market right now, let’s face it, right? And so I think we recognize that this is not necessarily a market where anybody will shine in terms of growth. For us, what it is to continue our focus on our transformation, continue to be more relevant, continue to drive our investment priorities around AI, around cloud, around security, continue to upgrade our talent, continue to be more nimble, more efficient, and that’s how you will recognize that’s how we continue to maintain and actually deliver the level of margins we are at in Q2.
And so that’s — we are ready for when the market will bounce back to go back into growth mode.
Operator: We have a next question from the line of Gaurav Rateria from Morgan Stanley.
Gaurav Rateria: So my first question is regarding initiatives taken by us to broaden our funnel to include mega deals which are like $500 million plus kind of a TCV in pipeline and pursue the same. And related question is also around nature of bookings that we have had. Are they more on the cost side or more on transformation side, have we made any tweaks in strategy to pivot to the changed market conditions when deals are coming more towards the cost optimization side?
