CVG
#Thanks, <UNK>.
I can.
We are seeing probably the biggest impact of that in the communications vertical.
As you know, we've got over 30 clients in that vertical, globally.
So a large exposure to it.
And we are seeing some volatility in their ability to forecast the impact of certain programs that they roll out, and in certain changes that they make at times to their care strategies.
We see it another verticals as well, but it's really situational by client.
And it's typical that we see this when we are having some bumping around in the economy.
Always tough to forecast what a marketing campaign is going to do, or new product launch of some type.
So we're finding that the lead time for changes in forecast is shortening, which just makes it a little tougher for them to forecast their volume and for us to forecast the impact of that on our business.
Not anything we're not adjusting to, and we are learning how to be very flexible with that.
But it is changing.
Yes, and we're seeing it across different clients in different ways.
But, yes.
I do.
It does, because we are growing with a number of our clients across verticals.
As you hear me talk about, I'm very pleased with what I see kind of under the hood there.
In terms of that relationship, we have a very good relationship.
What I would say is, as we enter the third and fourth quarter, I think we will see that gap begin to shrink.
And we're basing that on wins we've had ---+ new programs and new business we've won.
And then as <UNK> said, there are volume projections that we can see going into the third and fourth quarter.
So we believe that, that gap begins to narrow as we exit the year.
You know, this depends on so many factors in terms of their volume, that I just don't have the visibility yet into kind of 2017.
I can talk to you about this year because we can see what we won, but not next.
Yes.
It's fair to think that we should have a better jumping-off point, in terms of a year-over-year comparison with that client in Q4 of this year, than we did Q4 of last.
Yes, we're not going to provide any guidance into 2017, and certainly not for a specific client.
But again, I think what I said there should be somewhat helpful to you.
Again, we think the year-over-year gap declines as we go through the back half of the year, which means we would enter 2017 with a better year-over-year position with that client than we did 2016.
We have good exposure to that.
That's part of what we picked up when we did the Stream transaction, as you know.
In this particular quarter, we have a couple clients that are executing vendor-consolidation strategies, and we are picking up share in volume as they are growing and their volumes are expanding.
And this is certainly a vertical where us becoming more global, through the Stream acquisition, has been extremely helpful.
Absolutely.
So I will comment on other.
Some of that is where you would see the impact of the divested BPO businesses in those services running off.
So that's masking roughly 3.5% growth in that vertical, with that growth being driven where we've seen it being driven over the last couple years, which is strength in retail and in healthcare.
That's being masked, and that will ---+ we've explained that as being a headwind entering this year.
We think that headwind will also be somewhat lighter as we get out towards Q4, just given the timing of when those programs ended last year.
Financial services.
Yes, financial services ---+ nothing remarkable happened there in the quarter.
And that's probably our issue, right.
We've been investing in that vertical.
In fact, we've hired, recently, some new leadership with expertise from the vertical.
And it's one that's important, so we expect to get that one growing as well, over time.
Currency is kind of a bit of a mixed bag for us, as you know.
Headwind on revenue, a little bit of a help on cost.
It's a bit of it, but it is not the majority of the margin improvement.
As we've said, pricing ---+ particularly in certain geos ---+ is fairly elastic to currency movements.
And so you can't just assume that all falls right to the bottom line.
Sure.
Thank you.
All right, thank you, Kathy.
Well, with that, that's the end of the call.
And I want to thank you all for your participation today, and have a good day.
