CTSH
#I think ---+ <UNK>, it's Frank.
I think it really depends on what service line and what geographies you're talking about.
As you know, our industry tends to be quite highly fragmented.
And particularly in the digital world, there are smaller boutiques that we sometimes compete with on the front end.
I'll make general broad, broad statements.
I think given our end-to-end value proposition, the run-better, run-different value proposition, we think that's really driving our growth.
We tend to compete most frequently with the large global end-to-end providers that have both digital capabilities and the outsourcing capabilities.
We tend to compete now much less with the traditional offshore or India-based pure play, what I think of as run-better firms.
Although, certainly, they are still an important factor in the marketplace and so on.
But we're increasingly competing more with the global multi-nationals who are ---+ who can ---+ who have both the run-better and the run-different value proposition.
It's Frank.
Let me try and address that, and <UNK>, jump in as well.
We have a good pipeline of those types of deals at the moment.
Now, let me also caveat that by saying that our pipeline of deals tend to be ---+ are smaller than the Health Net deals.
The Health Net was a very, very large deal.
But we have a good set of clients that we're talking to around the similar model as Health Net, and the pipeline I think of those deals is good.
I would remind you that in our mind, really any client that is running the TriZetto platform is a potential candidate for this kind of model.
So we think that when you look at the value proposition from a client standpoint and you say, what's the value proposition.
We think that our ability to run the software, host the software, run the business process, given our deep-domain expertise in healthcare plus the knowledge of the TriZetto platform, really is very, very compelling to clients.
So I would ---+ I don't want to really venture a guess as to when we will be able to talk to you about another similar deal.
But my hope would be that, let's say in the next four quarters, we would be able to come and talk to you about a similar deal structure with a client similar to Health Net.
But I want to be clear: I don't think we have anything of the size and scale of Health Net right now that we're discussing.
Sure.
So as we've said for the last six months, and as we've practiced in prior years, we peg our wage increases right in line with the industry.
And this year, that translates into high single-digits offshore, low single-digits onsite.
The attrition doesn't necessarily change the magnitude of the wage increases.
Because, remember, people stay for obviously compensation's important, but it's also career development.
It's the opportunities to move up on the Organization, to be powered to take opportunities, the excitement and how dynamic is the Organization.
So it's a combination of compensation, but also a broad range of employee engagement programs and very importantly, the career-architectural work that I mentioned earlier.
So people understand our growth rate provides unparalleled opportunities for their long-term career growth.
So the big thing obviously we did is we took utilization up.
We slowed down hiring.
I view that as that's good operational discipline, and what we want to make sure is that we have the dollars available to make the long-term investments rather than not having operational excellence.
So clearly, we slowed down hiring.
That's good for employees because our bench was getting a little big.
I think some employees were saying, hey, where's the learning if I'm sitting on the bench.
So we've taken our bench down substantially, which I think is very good for our employees.
The other things, such as travel, we need to walk the talk.
We talk to our clients about being digital, being virtual, our use of whether it's video conferencing or other collaboration tools create great opportunities for people not to be on airplanes all the time.
It's interesting; as we slowed down travel, our video usage went up 40%.
That's great.
We're interacting with clients on that.
Part of that is not ---+ yes, it's great to save the money so we can invest it in the future, but it's also important that we're walking the talk on what the future of work looks like.
I think ---+ honestly, it's hard to make a forward projection on this one.
I think outsourcing will continue to be healthy.
If you look at the dynamics of outsourcing, you have a few things going on.
You have parts of the world, like I said earlier, like continental Europe, that are still first-time outsourcers.
That's one ---+ I would say on the positive side.
The second-positive driver is that you've got parts of outsourcing, like business-process services and infrastructure services, where penetration rates are still relatively low.
So that's another positive driver of demand.
So those are the positives.
Then you look at what's offsetting that and you say clearly clients are shifting budgets from lights-on maintenance over to digital.
And so that pulls demand down on the outsourcing side.
But as long as you're well positioned to pick it up on the digital side, which we feel like we're very strongly positioned, you pick up those dollars and potentially you pick up more, because it's not always a dollar-for-dollar swap that happens there.
So net-net, how does that all net out in terms of the trend line over the next few quarters.
It's very hard to make a prediction.
I think the message you should take away is that the outsourcing service line is still fundamentally solid.
There's still a very strong value proposition there.
There are segments of that space that are still underpenetrated, and that will continue to drive demand.
And then, we'll just see how ---+ where it nets out in terms of the trend line over the coming quarters.
All right.
Thank you very much.
And with that, I want to thank everybody for joining us today and thank you for your questions.
And we look forward to speaking with you again next quarter.
