Genpact Limited (G) Earnings Call Transcript & Summary

So good morning, and welcome. I'm Roger Sachs, Head of Investor Relations here at Genpact. On behalf of our 110,000 global team members, I'd like to welcome everybody to our 2022 Investor and Analyst Day. For those who are in attendance with us today, it's great to see you in person that we can have this conversation face-to-face as opposed to seeing you on a little box on screens. And for those who are joining on our webcast, thank you so much for joining us and [indiscernible] a little of your time with us today. I think we have a very interesting and useful day for you today. Thank you. I think we have a very interesting and useful day for you today, be a little different than some of our prior Investor Days as the presentations and sessions are much more about our future, how we -- where are we going to invest? How are we going to drive revenue? How are we going to drive profitability? And then we're going to tie all this together into what our new longer-term financial algorithm is. Now before we begin, just a quick housekeeping item. Because these sessions flow into one another, we're going to have our Q&A session after the last formal presentation. So if I can ask you to please hold your questions until that time. And for those who are listening on the webcast or watching on the webcast, you should see a box on your screen where you can type in a question or questions during any part of the presentation, and then myself and my colleague, Tiffany Horvath, will be curating those, and we will ask senior leadership during that Q&A period. So with that, let me turn the day over to Tiger Tyagarajan, our CEO, to start the event.

Thank you, Roger. Is'nt it ausome to be here on a day like this. We have a thought we'd come back, I didn't. Hang on 1 second, I need to unmute. No, I'm just kidding. 3 years back for the last time, many of you met with a number of us here. I'm here today with my entire leadership team to take you through our view on the market, and in that market, our perspective on our strategy to take the company forward into the next 5 years. And once I finish my opening, I'll talk about how we're going to spend the first 90 minutes. Once I finish, I'll have Katie Stein, our Chief Strategy Officer, who also runs all of our enterprise services, so think about finance and accounting, supply chain, sales and commercial risk, and many other such services. Along with data and analytics as well as our experience services. So all of that Katie runs. So, obviously, a front-row seat in terms of understanding strategy in a market that is changing so much. Following Katie, we'll have BK Kalra talk about our growth drivers. What are the growth drivers that give us the confidence in our topline growth over the next 5 years. And there's no better person than BK to actually talk about that. BK runs our consumer and health business along with our financial services business. You put those 2 together, that's 2/3 of the industry vertical businesses in the company. After BK, we'll have Darren Saumur, our Global Operating Officer, who'll talk about our margin drivers, and we believe that we're going to be driving expanding margins going into the next 5 years. And he'll take us through the execution game plan for that. And then finally, we'll have Mike Weiner, our Chief Financial Officer, come in and talk about how it all fits together? What is our financial outlook for this 2026 horizon? And how does that all tie back into capital allocation framework that we're using as we go into the next 5 years. I'll wrap it up and then we'll have probably an hour available for Q&A. We'll break for lunch, I hope all of you can stay back for lunch, and then we'll continue the dialogue through lunch. So with that, once again, thank you very much for taking the time to be here with us today. And this is a good place to start. Think about this as, the headline. It's what I think you can take and keep it in your pocket as you walk out of this meeting. We're a global $4.5 billion revenue company, expected to grow at a compounded growth rate of 10% plus per year with a significant portion of that revenue being recurring with expanding margins and strong cashflows through to 2026. So just keep that in mind as the background to what we're going to talk about over the next 90 minutes. And we are a global professional services firm to have the proud history, the proud history of delivering tangible outcomes for our clients in helping them change, transform and do businesses [indiscernible] in a world that's rapidly changing. With an ability to do this systematically across the globe, I just want to dwell for a minute on that. The ability to do some of these changes for these large global enterprises systematically across the globe, it's not easily matched by more than a handful of people in the competitive landscape. And that's true for us, for every one of our services where we bring our industry depth, our domain depth along with our process expertise across the globe to be able to solve the problems and the challenges and capture the opportunities for our clients in every service that we do across the globe. [indiscernible] is the fact that we have not only capabilities around domain and process that you already know us for and data and analytics and technology, but now think about a 100,000-plus organization that in the last 18 months has tested and trained 58,000 of them as we speak on data and analytics and are getting deployed in new data and analytics kind of engagement as well as using data and analytics in the way we run, and they run the operations. All of that allows us to basically serve our clients and 1/4 of the global Fortune 500 are the ones that we serve with that recurring systematic revenue. And we provide a range of services. So the way to think about this is start with the capabilities at the bottom. We've always been known for process and domain and industry expertise, but over the last many years, we've built strength in data analytics, technology, including Cloud and Experience and AI. And when you bring that along with the standing of the industry that we serve, and these are very sharply chosen industries. It's not all industries. And then we combine that with all of the process expertise and Lean Six Sigma expertise that we've always been known for, that's how we drive value for our clients. And that value drives topline improvement for our clients. It drives cost and bottom line and margin improvement for our clients. It drives cash flow improvement for our clients and risk mitigation. Every one of those, we have services that are aligned to every [indiscernible]. You'll hear example after example where it's one of these that get attacked, and it's the diversity that really makes us very interesting in these times, and you'll hear about that a lot more. That engagement with the client often starts with advising them. Now what are you advising them on? We advise them on the choices they have to make. Every one of our clients in every one of these situations is presented with a range of choices. What technologies do I choose? What are the phasing of those technology choices? What's the data models do I choose? How do I orchestrate them? What is the way I retire old technologies? How do I then drive change and transform? Driving that change and transformation and working with our clients. First in making the choices, then helping orchestrate and then driving the change and transformation. And in many of those cases, it then ends up with running the operations for those clients, driving that value and outcomes, which further leads to more opportunities [indiscernible] and technology and data back into the client. When you put all this together, we're talking about a very large addressable market that is still under penetrated even more on [indiscernible] because of the last couple of years and the way that's opened up, where we have real opportunity using data [indiscernible] unlock that opportunity, and that's what we are seeing in the marketplace. Let's be very clear. But in that [indiscernible] that strength really starts with the way we make choices in the industry verticals that we serve, in the services that we do. That has allowed us [indiscernible]. That depth is what makes a difference when combined with our process depth. Then the other competitive advantage we believe is really strong is the frameworks, the models, the data models, the IP, the library of IP, the benchmarks that we have created, curated, pull together that are available for our teams to use these services in each of these industries to drive value for our clients. [indiscernible] technology platforms on the cloud, mostly curated platform partnerships that we have that then drives an operationalization of the insights that we create. That insight leads to action that we drive the then [indiscernible] outcome that we need to deliver. So that's what creates that competitive moat. And then at the center of that is an ability to at scale [indiscernible] deploy, it's about continuous skilling [indiscernible] 58,000 example of that. It will create value for them. It creates value for us when we bring that to the table. Everything that I described allows us to build that client intimacy. We think we have a unique client and [indiscernible]. The breadth of [indiscernible] that goes into different centers more and more connected. We've used a build, buy, partner strategy to access all of these growth opportunities and growth priorities. And if you look at the set there, those are some of the core technologies that we've built. We've taken our curated intelligence, our orchestration and our transformation IP and embedded them into Cora. You've heard about Genpact Cora for many years now. Enterprise 360. You'll hear more about this from Darren is the intelligence layer that sits on top of all of our operations. [indiscernible] operating teams to use that intelligence to build insights, to drive operations, to drive change and identify opportunities for change that drives value for our clients. And then what we've done is taken our technologies and connected them up to a range of technology [indiscernible] very careful of who to partner with. And an example would be connecting Genpact Cora to ServiceNow in the financial services space, and most recently [indiscernible] financial services partner for the year just gone by. Another example where we use our partner technologies and co-innovate with them. An example would be the co-innovation that we've driven in KYC and AML, AWS. Now have a built-for-purpose [indiscernible] KYC, AML for large financial institutions across the globe. And finally, acquisition [indiscernible] capabilities around supply chain. The Barkawi acquisition has been at the forefront of being able to use and leverage those capabilities that includes data and technology that is relevant in supply chain that we then bring to clients. If you switch to Hoodoo and Something Digital, that allows us to be a relevant player in the whole Adobe ecosystem of experience transformation, all [indiscernible] important in today's world. However, it's pretty well known, starts with process expertise. Then over the last 10 years, we've added industry depth and domain depth expertise, domain, meaning, for example, finance and accounting depth or supply chain depth those areas. And when you combine those two is where we see real value of leveraging today's data and analytics, technology, including Cloud and Experience and AI to then bring value to our clients by building insights that drive [indiscernible] is when we drive true value to our clients. So our core services we've always been known for. Think about finance and accounting. Those core services continue to deliver steady growth over the last few years. They continue to get reasonable investments from us as a franchise, but the [indiscernible] would be risk. Supply chain and sales [indiscernible] examples. And those services that we picked, we invested in, have responded to that investment. 26% of our revenue in 2021 came from these emerging services growing faster than the company average, growing faster than the market in those services. That's the exciting thing about this shot. I think this is a thing a slew of challenges that is macro. And I want to talk about 3 that are relevant for our relationship and our partnership with them in that chain. The first would be, they've all [indiscernible] technology, everyone. But experimentation is done, maybe not. We've got to keep experimenting. But it's time to take those experiments and get a return, and the only way you get a return is by driving industrialization and scale. The second is volatility. ESG, supply chain, geopolitical tension, inflation, [indiscernible] every one of those is a volatility in the environment that our clients have to deal with. It doesn't matter which industry. And the third is pretty clear that in anything and everything we do and our clients do and the businesses do, it's all about can you create a human center design? In the world of digital, experience better be delightful. It's got to be delightful and great, not just for my customers, but to my employees as well because that's when all of these great things that we are building and using and trying to drive change in will actually get used. So those are the 3 trends that we see. [indiscernible] to deal with them. And you would think that they would all rally forces around and address these challenges, right, and try and do it themselves. But can [indiscernible] you really need expertise and scale to be able to leverage everything we talked about in order to address the challenges that the market is throwing at them. That expertise and scale comes [indiscernible] so what you're seeing in the industry is a tailwind of a desire and almost a run to the finish line desire to leverage expertise and scale that require [indiscernible] closed with this all to life. Think about our global technology platform company, where our [indiscernible] in the region we focused on and drove global growth in that [indiscernible]. Another example for a large banking [indiscernible] our client have growth, but it's third reduction in total cost and then you [indiscernible] all 3 at the same time. And then the third one [indiscernible] company. Think about [indiscernible] connect information flow. Supply chain, no surprise. Easy to think about challenges in supply chain. Needs to connect with [indiscernible] each to connect with the whole capital with the customer. That is information connection that needs to be done, and our solution allows that connection to be done seamlessly on top of ERP technologies that allows data to be leveraged for decision-making that drives working capital, significant improvement in working capital and a significant improvement in top line by just preventing revenue [indiscernible]. And to close this portion, one of the things that makes our leadership team very proud is the focus and the commitment we have to ESG. It's all aspects of ESG. I mean if you think about just [indiscernible] as one key aspects of that, [ 50% ] board diversity at the Board level, [indiscernible] recognized across the globe for all of our practices there to scope reduction that we've driven over the last 4, 5 years. We think we are leading and at the forefront of embracing what we think is not just a [indiscernible], but imperative for the business, for our teams, for our communities and for our clients. [indiscernible].

All right. So doing scenario planning and strategy in a volatile and uncertain world is certainly hard enough. We're going to see how the volatile and uncertain mic works for me today. This is a whole new challenge I haven't encountered. I'm really pleased to be here, and what I want to talk to you about is our market. Look, Tiger started by saying we're a $4.5 billion firm-ish, and we're looking out at a $1 trillion market. That's extremely exciting. And a lot of things between now and 2026 will continue to shift and evolve. Over the last few years, none of us would have anticipated a pandemic and the lockdowns that we saw, but what I can tell you with clarity is that Genpact's investments position us very well in this market. And why do I say that? I say that simply because the market has 2 sets of services: one in data, tech and AI that we see as high growth, and we've acquired, built and partnered for tremendous capability there; and the second is digital operations. And there's oftentimes ways that we can help clients whether in a growth environment where they're looking to capture more market share or an environment where they're managing margin. And our ability with our service lines and these 2 sets of services we bring to the market to pivot with our clients' needs is an advantage to us and one that allows us to be durable in the face of any scenario that presents itself. The second thing that makes me really bullish is how the market is recognizing us for the capabilities that we've built and invested in. So let me just give you a few examples. First of all, automation and digital workflows. The likes of IDC, Gartner and Everest rank us in the top quadrant. End-to-end digital transformation, HFS, we're top 10. Gartner, data and analytics, we're a Magic Quadrant top player. And finally, I was really proud to see our experience capability last week recognized by HFS as top 5, but maybe I'll end the slide by saying #1 in voice of the customer. And I think that's really important because what we're here to do is serve our customers' largest problems. I think this slide requires a little explanation because we're partitioning today our services into 2 catalogs or portfolios. One, we're going to keep referring to as data, tech and AI and one is digital operations. So let me start with the data, tech and AI in the definition, which is to say, what do we do in data, tech, AI. We solve clients' problems. We build solutions. What does that mean? It means that we design, we build solutions that drive transformation or change aligned to our clients' strategies. On the other side, which is digital operations, we also transform and change our clients' operations, and then we run them to deliver higher levels of performance. So on the one side, we design and build solutions to drive change, and on the other side, we transform and change operations, and we then run those for higher performance levels. I think sometimes it's easiest through client examples. So I'm going to try and give you a few and there are a couple that are really near and dear to my heart. So the first example I wanted to give is, it's summertime. I went to the supermarket the other day, I bought some strawberries. I got them home 3 days later, they were moldy. I'm sure this has happened to probably most people in this room at some point or other. Strawberries are very perishable. We serve one of the largest food manufacturers or distributors who happens to be probably the brand you see most often associated with berries, and their challenge is, their entire business model and how they make money hinges on velocity from farm to fork. Think about it, it's perishable. So the faster they can get those barriers out of the farm and distribute it to retailers and into your hands, the more likely you enjoy those barriers and you don't end up like meeting moldy berries throwing them out. Why did they choose us to work with them as they were trying to solve the problem of how do they move faster from farm to fork? Because we have great data, tech and AI capabilities, because it's a sales operations problem, and we've run sales operations for some of the largest consumer goods companies. And it's a supply chain problem, and that's a domain that Tiger talked about. It's something that's very near and dear to our heart. So it is the industry, the domain and the capability coming together into a multiyear transformation around this problem of farm to fork at speed. So what did we specifically do? First, we built a data platform on AWS in the cloud for them so that they could capture the data and start to use it for visibility and transparency. Second, the biggest issue is, you've got farmers in the field. They're not sitting at their computers entering data for you. So we used our experience capability and our data and mobile capability to build a mobile application that was farmer-friendly so that farmers were entering information real time in the field so that they could access them and start to think about allocation to retailers. How much to the high-end retailers, how much is the discount, how much do the juicers for those of you that juice. The third thing is, they have deductions. 3% of revenue leaks for consumer goods companies, that's 3% of revenue that just falls away in deductions. And they're huge claims in a perishable business because a store gets strawberries, and they say they were bad. So again, using our cloud-based platform to build analytics and run transparent data communication between their customers and our customer, we were able to actually eliminate 80% of those reductions. That has a massive impact to our customer. And finally, several years later, the journey doesn't end there. We're now working with their CFO to build out an integrated business planning between these 3 functions. The second example that I want to give you is probably when you've read a lot about, and you all have laptops down and you're putting things in your excel spreadsheets, but most of us are now carrying supercomputers in our hands. I mean there are computers on steroids or the cell phone. Recently, I saw a water bottle that had a semiconductor chip in it. The car can park itself. Everything is smarter. But an industry like semiconductor has been under immense pressure for years with respect to the supply and demand imbalance of chips. And I won't go into all the complexity here, although offline, I can take you all through it, and it's super interesting to me at least. But we work with one of the largest semiconductor manufacturer or one of the largest semiconductor companies in the U.S., and they had just made a commitment to their investors, standing on a stage like this, their CFO had promised a market cap acceleration. And to do that in a highly supply-constrained environment, they have to balance the demand and supply so accurately between which chips are going to auto, which chips are going to their cell phone companies, what's going to happen so they maximize profitable growth and working capital. So this is a core CFO problem, but it is a supply chain issue, and they needed supply chain transformation. So because we've invested in some of the top talent from the semiconductor industry, bringing in people who run supply chain at these companies. So they know the problems. That's the domain. They know the industry. We have 20 years of experience through Barkawi, and then we have our technology capabilities of data, tech and AI we have started on a journey with our client where over the next 1.5 years, we will modernize their planning system to the Cloud, leveraging a core partner of ours, Kinaxis, the partners of horizontal technology. So we're building out 20-plus extension models on their technology that allow it to be fit for purpose for semiconductor. And then finally, in the interim, no one can wait 1.5 years, they've made a commitment to the Street. So we're building out a data analytics COE with talented and professionalized skill sets to run those models in the background. They have the agility that they need in the near term to meet their projections. So those are 2 examples. Again, coming back to you design, build for change, aligned to make core business problem or strategy shift in our clients. See where I am. Okay. Go back one. Let me go to digital operations because that's also equally as exciting. So 4 years ago, we started on a journey again with one of the largest consumer goods companies. If you go to dinner tonight or this weekend, you're probably eating something that was delivered as produce from them. I see their trucks now everywhere. That happens when you start to work with companies. But their issue was, they had to reduce the costs and they had to simplify and standardize their finance. If you were the CFO sitting at the core of this company, your issue was transparency. Think about trying to close the books when your reality is 100 ERPs, 100 separate ERPs across 80 operating companies. I mean it's actually just like unfathomable for most of us. And so they wanted to deliver a business case of reducing the cost of operations, but candidly, there was huge risk associated because of how fragmented their technology it was. They ended up selecting us because of our deep finance and accounting, #1 in finance and accounting domain combined with our credibility and technology to be able to stitch a solution on top of their technology landscape that let them have their thousands of colleagues and our colleagues work together with the required transparency. We use Cora, our orchestration layer to do that, which includes both our IP and partner IP. So think of it as sort of -- I know this is in the technology for, but a single pane of blast, it's more than that. But think of it where both teams can now be working seamlessly without worrying about the fact that they have this very fragmented technology system. It also allowed us to access and embed automation. So when we met them, they were processing 8 million accounts payable invoices a year at 30% touchless. They're now at 80% touchless through automation. So that's a huge advantage to them both in terms of cost and speed. And then finally, we built out through receivables, all sorts of credit decisioning models for them. And why is this important? Just imagine back at the beginning of 2020 when the pandemic began, if what you're distributing to is primarily small mom-and-pop restaurants, and all of a sudden, the lockdown happens and they're closing. Who's going to default? Who can you collect from? And it's less about you in that moment. I think most of us felt like, how do we keep our customers in business because this will end and how do we make sure that our ecosystem survives. So being able to quickly configure credit decisioning models into our process to give them better insights about who to call to collect, where they needed to extend credit and how to have those conversations because they were hard. It was all some of the way that we brought data, technology and AI in our digital operations. So we've transformed the way they run their operations using our new technology stack to deliver performance that's more than just cost reduction, but actually business performance. So I think I probably talked about the 2 sets of services, and hopefully, it's been clear. One is about designing, building and driving change, and the other is about transforming and changing so that we can run -- Genpact can run operate those processes at a higher business performance level. I think that the slide here, the most important point I always take away from that is, when I'm in the market, sometimes I meet people who've known us for a very long time, and I asked them what we do. And they say, oh, you're #1 in finance and accounting BPO. You do great work offshore with finance and accounting processes. And then I stop, and I look at this slide and I say, hey, guys, 40% of our business is in data, tech and AI because of the investments that we've made. That's actually quite different from the statement that they might be making to me. And so I think one of the reasons we wanted to share this was to help the market understand how over the last few years we've continued to diversify and pivot our business so that we can meet our client along a continuum of needs. They may be run operate in a transformed environment or they may be to design and build solutions using modern technologies and tools. The last slide that I wanted to share is really to dispel any confusion, which is, these are long client journeys. We are deep in critical processes that clients use to run themselves. This client is a global CPG company, and 5 years ago, we had a less than $10 million relationship with them. We were running their finance and accounting operations, digital operations credibly because we've done that. Over the years we've expanded that base to 4 regions, including Asia and Africa, but it doesn't stop there. At the same time, as they thought about a strategy that was much more analytics led, all of their colleagues would think insights first, data first to action better and drive their business performance. They came to us through our data, technology and AI services and had us build out their data platform, and their vision was, we want it to be like Netflix. We want our colleagues to go on to an analytics hub and select their persona. And we want them to pull down the reports that makes sense for them, and we have this to be easy so that people are using these insights every day to drive action. So we leveraged our experience capability, and we built persona journeys. We leveraged our data capability to cleanse that data and make sure the use cases were there. And then our digital capability bring it to life and make it available in an analytics hub. Similarly, a few years ago, they made probably one of the largest technology investments any of our clients will make, which is the S4 journey. We're not SI, that's another provider. We're the business integrator. So what does that mean? Because we've been running their finance operations now for nearly 5 years, as they got to the CFO said, are our processes fit for the technology? What are our requirements? How do we drive change? Who's going to do the user acceptance testing? That was Genpact. That's a very important role to making sure that they can realize the business case on one of the most significant technology investments they're making. So hopefully, this slide just sums up, these are long journeys. This client now is over $100 million, and we've met them from both sides of our services, both data, tech and AI and digital operations. And with that, I want to invite BK to talk a little bit more about our growth in our clients.

Thank you, Katie. You all just tell terrific stories, thank you. Good morning, and it's great to see you all. Look, what I'll cover -- what you heard Katie say about our total addressable market, about how we are pivoting to data, tech AI along with digital operations. Over the next few minutes, what I'll talk about is how we are going to deliver sustained double-digit growth for a long period of time, and -- but before I go there, I first want to talk about market segments. What market segment are we truly addressing. One of the key areas where we work is with Fortune 500 clients with what -- we already have established relationship with a number of them in our chosen industries. And Katie just spoke about journey of one such client [indiscernible]. As we think of these large global companies, they are the ones who actually set the agenda, set the stage, set new expectations, demand new services, and these are the clients where we are believing our long-term value is best fulfilled. And we are pivoting on making sure that these prioritized clients is where our focus is. If you see over the last 3 years, we have -- about 50% of our revenue is already -- over 50% of our revenue is already sitting with these clients. And if I reflect over the last 3 years, these clients have grown at almost double the compounded annual growth rate of the entire franchise of Genpact. And as we put added focus on this, we do believe -- we do expect this cohort to grow at faster pace than the company and deliver close to about 70%, 75% of our revenues from this franchise. With these accounts in focus, I'll talk about 3 key drivers, which will impact, which will deliver significant or enhanced revenue growth over our foreseeable future that we are talking about: one, accelerate investments in emerging services that Tiger spoke about; two, gross cell; three, increased non-FTE commercial models. I'll take each one of them. Let me go to accelerate investments in high-growth services first. Look, in 2019 Investor Day, I stood in front of many of you and spoke about potential of supply chain services, potential of risk. At that point in time, we had prioritized these 2 service lines. In 2020, we picked up sales and commercial service line as well that Katie spoke about. These 3 service lines, as was enunciated by Tiger earlier, have grown at 50% compounded annual growth rate over the last 3 years and already represent as 25% of our revenue. We have invested ahead of the curve in these services, built and established our IP, built many of data-led assets, many accelerators, and it truly represents a very strong positioning that we have in these service lines. Maybe I'll take a couple of examples, a couple of stories to enunciate the point and go a little bit deeper for yourselves. So I'll pick the risk service line first. As I think of risk, one of the key areas is financial clients, and we have deployed financial client capability in many large, several multinational banks. But we fundamentally gotten an opportunity to work in a high-tech client who's been a long-standing client for us. They were going to enter into a payment industry about a few years back. They had 2 challenges. One, they faced rigorous regulatory requirements at global scale. So you think of anti-money laundering laws, you think of counterterrorism laws at a global scale. And in a payment business, that is obligatory to address all of those issues. The second challenge that they had was, owing to COVID -- this is a large technology platform company and owing to COVID, their payment volume went through roof, 500% increase. High volume, high risk. So what they really looking for was a partner with a deep expertise in financial crime. Genpact got engaged in the process. Through our established IP, we deployed our regulatory framework for them first. Then we shaped the operating model and delivered a multicity, multi-country operating model to them, and later on, aided them with a team of seasoned ex-Federal investigators who are -- who do complex investigations into anti-money laundering or KYC issues in the entire value chain. In a sense, what we delivered for them was, in a short period of time, a scaled solution on back of our financial client IP that we have developed. And given how the collaboration worked during the COVID time, the relationship became far more cemented, and it's a cherished relationship between both the firms. If I take a second story on that leaves both supply chain as well as sales and commercial, it is, again, a story that I'm equally proud of. It is a consumer products company that has a fairly iconic one. They have 2 billion consumers world over, operate in 150-plus countries. So they are very astute buyers of these services. They know this space really well, been around for a long, long period of time. So a ton of things were working well for them, but the customers were demanding more agility, more speed. So they have 3 issues. The customers were dissatisfied with the service levels and the volatility in the service level, especially during what happened in pandemic. Two, a number of their own business people were not as happy with the unoptimized inventory levels and investor community was also expecting more from bottom line results. They felt a little stuck, and they got engaged with Genpact. And what we again brought was our strong IP in plan to cash process. In this particular case, we engaged with their various teams, about 5 functional teams, studied about 180 subprocesses, optimized close to about 32 subprocesses, eliminated 9 subprocesses, looked at about 18 subprocesses that needed more technology enhancement, including what the stack that they have, but in a more effective manner. There was a lot of friction that was sitting in their silos. A lot of untapped value that was sitting in their silos is what our teams smell very quickly on the back of frameworks that we had built. So in a sense, what we did was, this is a plan to cash smart enterprise process that we have invested over years and that caught leverage to deliver this new operating model that was delivered at scale. And I bet in case anyone asked this particular client, they would say that Genpact was able to unlock a lot of value in a short period of time in a far more -- in their entire business operation process. Fundamentally, through these 2 examples, what I want to enunciate is, these 3 service lines and a few other service lines that we have called as emerging services. We have invested ahead of the curve. These are scalable services. We have our own IP, which is domain rich and talks to specific industries that we work in. In our prioritized accounts and our prioritized clients, we see a lot of demand for these services, and we expect these services to grow at a faster clip. Let me shift gears and talk about the second key lever of growth cross-sell. We all know that Genpact has always been known for Net Promoter Score. We have been in top decile of Net Promoter Score for many, many years. That has been one of our key differentiation. And I would say, Genpact is fortunate that our clients also are equally passionate about us as much as we are, and I would say, they like working with us. To harness that goodwill, we are putting strategies in place to increase our share of wallet. And so think of the acquisitions that Tiger spoke about, that Katie spoke about or all of the bills through our R&D that we are doing in this IP. How do we harness all of these for our prioritized accounts and bring the entire Genpact service to 4 for a number of these clients? And we are fundamentally selling these additional services in newer buying centers. We are bringing more sole-source conversations in an innovative way, including for data, tech AI as well as pushing the agenda of renewing proactively so that we stay for a longer period of time, and a number of these are decade-long or multiyear journeys as we talk about. And we are already implementing these strategies. One of the again story that jumps at me is a medical device major that we have. We are with this particular client already for 6 years. We've been delivering to them finance and procurement services. As we acquired the experience services and capabilities and integrated with the business, we looked at this particular client proactively, asked our promoters and that particular client to give us an introduction to a different buying center at the front end. And we quickly identified an opportunity in field service complaints for their lab equipment. Through services like these, this client has been $15 million for us for a number of years with high NPS with high voice of customer. Over the last couple of years, it is now doubled into revenue through services like this, and it's become far more vibrant client for us and a far more enriching relationship on either side of the house. Fundamentally, we are putting routines and rituals in place in a disciplined fashion to expand on cross-sell. And if I quickly go to the third key lever is, how do we have more of non-FTE-based commercial models, more linking to outcomes, partnering for outcome. And in this particular instance, again, outcome has always been one of the focus on outcomes being Genpact [indiscernible]. It's been one of Genpact's differentiation. And if you think of the story that I spoke about from a consumer products company, in that particular instance, we had value share arrangement in the contracts where a lot of our professional fees is linked to delivering outcomes, unlocking value, as an example, reduction in inventory. That is also sharpening our value proposition, and in that particular instance, helped us win a $100 million-plus account on a sole-source basis. How we are -- now we are sharpening our focus on all of these commercial models because these are opening new doors for us. These are far more stickier, and it is becoming a more meaningful size of our business. And over the next few years, we are wanting to double the franchise on non-FTE-based commercial model. In a sense, what we are wanting to deliver in our prioritized account mission-critical services, where we in a routine and ritualistic way, bring cross-sell, and we have already put with our sales team, our structure in place and more oriented to outcomes. With that, I'll invite Darren, who will also talk about outcomes in a different way.

Okay. Hopefully, the mic is on. Are we good? All right. So thank you, BK. Exciting to be here. Good to see everyone in person, too. I was going to do the unmute thing Tiger as well. So over the last several years, you've seen us increase our margin 70 basis points to 16.5% by the end of 2021. And I think you heard Tiger talk a little bit. It's now the time to accelerate our margin expansion, and I think there's 4 key levers here today somewhere that -- all right, I won't talk about that. I will get to them. There's 4 key levers today that I want to talk about that we think have a lot of opportunity for us over the next 4 years. So let me jump into the first one. BK just teed it up and that is really around non-FTE commercial models. So this is billing for clients for anything other than paying by the person. And for us, we've seen in the models that we're already running for clients, and it's not enough, but it will grow. We're doing about 500 basis points higher in those kinds of models than our traditional FTE-based models. And there's really 2 kinds. One is outcome-based models. So this is where we would bill our clients based on the value we generate for them. So Katie talked about deductions. If we can save a client, something they otherwise would have written off, we would take -- we get paid only based on that or if we help a client drive sales, pay us based on the sales we generate for you. So that's model #1. Model #2 is what we call transaction-based pricing models. So this is where we bill our clients based on the number of transactions. So it could be paid by invoices, paid by manual journal entries that we generate or pay by bank loans or pay by insurance claims, et cetera, et cetera. You get the picture. The goal with these models is to really decouple labor from the actual outcomes that we're responsible for. That way there, when we make investments in technology, investing in technology assets instead of labor, we can actually benefit from it from a margin expansion perspective. And as BK said, it is a lot stickier. These applications -- I mean these services are generally delivered at scale. It's a scale that a client wouldn't be able to achieve on their own. So by leveraging our scale, they get benefits that's a lot harder to walk away from. And for us, obviously, it's less reliance on people. And in these days and ages, where wage inflation is so incredibly painful as well as attrition, it's definitely the right way to go. The other thing I'd say -- well, maybe I'll give you an example of an outcome model. So we work with a major technology company and we run their contact center for them. And this client said, why don't we work together to take the contact center from a cost center, i.e., answering calls for customers into a profit center, which means uptaking our agents and get them to upsell their customers and drive sales. So we switched the model, and we said, pay us based on the sales we generate instead of how many people we have sitting in the call center. And we were able to drive a 22% increase in their sales. We also drove up their Customer Sat by 12%, which is now best-in-class, and we did that by bringing analytics into the equation. So we're using analytics to help our agents segment the customers. So when the calls come in, they know what segments they are, number one; and number two, we used AI to build a recommendation engine. So we know what products actually sell to customer. So you instantly get it. These models create a win-win. We're so well aligned with the customer. We only win if they win. If we don't drive sales, we don't get paid. And the better performance we have, the more money we make. And by the way, the clients are happy with that, too, by the way. And also, we are -- it makes us sharply think about the investments we make. If we're going to make an investment in technology, we want to see a return. We want to see the performance out of it. So that's one big one. You might wonder what's the risk profile look like on these kind of opportunities, and as BK said, we've been running these -- I'm going to say, we've been doing FTE-based models, but we've been measuring business impact since the inception of Genpact. So we know what's possible. We know the kind of savings are actually available to these kinds of -- in these kinds of business processes. And if you look at our traditional FTE model, we used to underwrite the savings anyways through productivity. So this, in essence, is not any riskier than those models. The second is transaction-based pricing models, I mentioned. So again, the intent is to reduce our reliance on people, put more into automation and build a client on a price per transaction basis. So I'll give you an example. On the renewal of a long-term F&A client, finance and accounting client, we were able to convert the entire contract from an FTE-based model over to a transaction-based model. So all of the various transactions, whether it was processing invoices or running their financial statement close process. So what we did, we basically -- the first thing is, I'm going to say, good old-fashioned Genpact, which is, we standardize their end-to-end business processes because only when you have a standardized business process, can you more efficiently convert these models. And then we build bots workflow and an extremely targeted digital technology. So for example, to help improve the financial close and automate that, we leverage a platform called BlackLine. To improve their cash collections, we leverage a platform called HighRadius, and we did that across the entire portfolio. The benefit is, there's less humans touching the systems and our people only deal with exceptions. We don't deal with the one-offs. And actually, the win for our people, quite honestly, is they get to do more exciting work. They get to do more higher-end work. The big win for this client, by the way, and what they wanted was, they wanted the ability to variabilize their cost structure. So as their transaction volumes go up, they pay more. As the transaction volumes go down, they pay less. And because we have enough scale, we're able to spread that risk over multiple clients. The other thing on transaction-based pricing models and risk to our business, we've been measuring this forever. For as long as Genpact has been in business, we know the cost per transaction. It's something we reported on with their customers forever. So when we've got to enter into these contracts, we know what's achievable. And I'd say, the other benefit is, we're leveraging these investments. We make them once with one customer. We're ever to leverage them with multiple clients across the service lines. And a great example of that is, I think, of the AI algorithms that we're building. They get smarter and smarter the more clients we deploy them on, and it really does give a big advantage. So let me flip here. I want to talk to you about the second lever, which is modernization. Now we've been modernizing Genpact from the inception, and so we believe it's a journey, not a destination. We will always be modernizing our operation. So I want to talk you about 3 ones today that we're really excited about from a margin perspective. One we call -- the first one we call the 3 As, which is automation, analytics and AI. And obviously, if you're automating lower-end transactions, you're moving higher up the stack with our clients and offering higher-end service offerings. We also believe, though, that machines will not displace people. So -- and we have not seen that in our operations. It's just changing the kind of work our people do. So our people won't do routine boring transactions, our people going to do the more exciting, higher-end transactions, which is better for career growth for our people. And by the way, I always say this, it doesn't matter if someone lives in India, Philippines or China, they do not want to do low-end routine transactions. They want the machine to do that. Our people are focusing more on areas where it involves critical thinking, judgment and/or innovation. And we're able to rescale our workforce, and I'll talk about that in a little bit. An example of where we deployed the 2 As at a large pharmaceutical client where we automated 75% of the transactions in the account, and again, with bots workflow, digital -- other digital intervention tools. And the benefit of the client was well beyond just a cost savings advantage. For them, it was about accuracy, getting their financial close done faster, more accurate reconciliations and better working capital, quite frankly. We also built for the same client an analytics center of excellence that we run every day for them for their sales and marketing team. Sales and market team always want to know who should we target? What customer should we segment? So we're helping them with that on a daily basis. We also help them with price optimization, which should -- how much should you price their services and products in their markets. And then lastly is on AI. We help this client build an AI platform that allows them to more safely deal with patient health as well as regulatory compliance. The second that I want to talk about here is a platform Tiger touched on quickly, which we call Enterprise360. So this is -- we run our entire operations on a digital platform that we call Enterprise360. We worked with our partners and our ecosystem partners, leveraging their technologies, and then we added into a Genpact's digital solutions as well as our assets, our industry domain and process practices and benchmarks into the platform. We then put all of our clients and all 100,000 people onto this platform, and quite frankly, the timing was perfect because it -- actually, we rolled this platform out literally 3 months before the pandemic hit us. So it was actually a godsend during the whole pandemic. What we're seeing in this platform is incredible amounts of data, the volume of data that we have across multiple dimensions. So we can look at financial performance data on every single account. We can look at human performance metrics for every individual, how they're actually performing. We can look at operational data, compliance and risk data, et cetera, et cetera. You get the picture. So there's -- it's bringing incredible insights for us in terms of how to more productively and efficiently run the operation, but more importantly, we have this incredible wealth of detailed process benchmarks now in our clients' operations. And we're able to go back to them and say, I think there's an opportunity here and bring in our consulting and our technology teams to offer services to help fix those things and as well as human performance. We're using the platform to orchestrate the work that we do across all of our business so we can more efficiently deploy work globally, which, by the way, we used extensively over the pandemic when an entire region went down, and we're able to move work to other parts of the world. And the other beautiful thing is, it really does offer us a real-time window into how the clients' operations are actually performing. And so we know right away, and we can be more proactive about solving issues before they become too painful. The benefits for us standardizing our delivery. If you standardize your delivery, as you probably all know, you have much, much more efficient operations, which is super important. And then the productivity, which we've seen -- we're starting to see now even more so is, when I can actually look at the entire team that are doing the exact same thing and go, why is this person driving 20% more productivity than this person. And we go find out and then we're able to take that knowledge and uplift the whole team, you can drive significant productivity. And as I mentioned, the benefits to the clients, obviously, consistent delivery, better, more proactive delivery, but also having us come to them proactively with transformation opportunities, areas for them to improve their business. I would say, though, we are literally at the start, what I see is a much, much bigger opportunity with this platform to more significantly improve our services and our margin profile. All right. Let me talk about the third one here, which is insights. So every day, we have 100,000 people. They're touching millions of data points per day. Every agent touching something within a client. So we had a theory. So what if we could train this team on data, analytics and AI. I mean they already know the clients' business. They know the clients' domain, but they have their own domain knowledge. So if someone who really understands the domain can start to look at the data, they might see it a lot differently than just a traditional consultant would see it. So I'll give you an example of -- well, first off, we trained 58,000 people, as Tiger mentioned, and those people are generating incredible insights, but I'll give you the example of one, which was for a large banking client. So we noticed that their sales conversion ratio for customers applying for loans was 30%. So think about that, 10 customers come in to apply for a loan and 3 get the loan. Not great if you're in the business of selling loans. So we noticed there's 2 big issues in their business process and their systems. One was, they manage it on a first in first out basis. First customer comes in, we evaluate that customer, then we get to the second customer. And as you know, time kills in these kinds of business processes because if a customer needs a loan, if you can't get me a loan quickly, I'm going to go another bank. And the second one, another time killer for them was the timeliness it takes to give customers -- look at the customers' creditworthy history. So we use analytics, AI and workflow to basically preapprove these customers, and we resequence the customers that we're taking their best customers, the customer who has the most attractive and highest margin products and put them at the front of the queue instead of using first in first out. And the main benefit to this client is, they were able to drive their sales conversion ratio to 50%. The benefit to us is, we tied our fees to the success of that program. We're still doing this to this day. And so we're able to generate -- in this case, it was actually bonus payments for Genpact based on the performance. Another major lever that too here on this page is really around portfolio mix as well as leverage. So first on the portfolio. Every sales and delivery professional -- delivery leader at Genpact has their compensation tied to margin. So we don't generate the margin, they don't benefit. Now you don't get margin unless you add value for customers. So the best way to do that is to bring ideas to customers. So the teams are doing -- like the low-hanging fruit that we see right now is go into the operations, automate the lowest -- the transaction work you possibly can and use that to propel up to higher-value service offerings. The second is leverage the relationships we have in these accounts, mean we know the C-suite. So use the C-suite to get into -- speak to the leader who runs supply chain and sell the higher-margin supply chain services or use it to talk to the head of sales so we can help them drive sales. So that's the second way we're improving the portfolio mix in these accounts. The third -- sorry, the second one I want to talk to you about right now is around leverage, and the one I want to focus on is really the future of work. We have completely rethought our model when it comes to the future of work. I know everyone talks about this. I've actually avoided talking about it but because it's -- everyone changes their mind every 6 months. But here's where I think we're at right now, and we've experimented this model now for about 6 or 7 months, and I love it. So here's what it looks like. It's a labor and location strategy. So we're building something we called the hub and spoke model. So we're eliminating a lot of our sites. We've gotten rid of lots of real estates, more we'll get rid of as we get through some of these leases. And the model we're building is, in these sites in large, let's say, Tier 1, Tier 2 cities, we have top talent. So I think we have our data architects. We have our cloud architects. We have our management teams and then, of course, all of our supporting functions, whether it's finance, HR, IT, et cetera. And those hubs will stay, but what that's allowing us to do is now build spokes, and these spokes are in Tier 3 cities. Cities we never recruited from ever before. In those Tier 3 cities, the only thing we're putting there is billable staff. We're not putting management. We're not putting overhead -- we're not putting finance or HR. It's just these staff, and it's allowed us to get to a market and people that we literally have struggled to find in the marketplace, as you guys know, the way things are -- especially in technology. So tech resources in markets -- and they want to stay there. They want to live in those towns. They don't want to move to some of the big cities. So there's a big win for the people. The biggest benefit, although we've lowered our facility costs, we're lowering our support costs, but the much, much bigger opportunity for us is the cost of labor in those Tier 3 cities is significantly lower. And because we're the dominant player, we are the dominant customer -- employer in those towns, the attrition rate is also substantially lower, which is a big benefit for us. Okay. Let me shift. So anyway, that model, we've rolled it out in 3 or 4 locations. It's now rolling out globally. So we should see some significant lift over the next little while. Let me talk to you about attracting and retaining talent. This -- I mean the world is today and has always been a war for talent. And I'd say, it's more of a war for talent now than I think I can remember. And obviously, retention is absolutely critical. With retention, you get higher gross margins. Attrition is painful. It's painful for our clients. It means we have to invest in upskilling people again, and so the goal for us is to manage that attrition. And I think the next few years are going to be about talent supply, not that demand is going to be easy, but talent supply is going to be the absolute focus. So we believe that those companies that can scale, manage and retain talent are going to be the successful winners in the end. Now I don't want to say that all attrition is bad because some attrition is actually okay. If you look at some of our lower-end transactional work, we only have a certain price point, and we need a certain skilled resource to do that kind of work. Our focus is on regrettable attrition so people we really do not want to leave the company. So we've analyzed -- been analyzing our data, and we've noticed some pretty interesting things. And by the way, attrition at the top level and some of it's attrition to your company, it's completely irrelevant. You have to break it down into the right cohorts to really understand what's going on. So for us, when we analyze our data, one thing we noticed is that people who invest in skills development or retraining programs -- and we have an amazing platform so we know exactly who's dialing in and what they're doing in those platforms, those people have tried at 50% less. So our goal is to push as many people onto the platforms to get them developing their skill sets. And by the way, we did 10 million hours last year on our training platform. If you think of LinkedIn, that's more than LinkedIn has -- was able to achieve last year as well. So this platform, this training platform, we've curated all of our training at talent. So think about you go into the platform, whether it's you could do it on any device anywhere in the world, you do your training, you do your certification, you do your testing there and we track all the training for every single person. And by the way, it doesn't matter if you want to learn Python or Java, if you want to become a cloud architecture, you want to learn Lean Six Sigma, you want to learn about the banking industry, you do it on this platform at scale. The second thing is, we noticed that people that are in the 24 to 36 months in the exact same job have a 60% higher chance of a trading. So we've been pushing that cohort of people to get them into new opportunities. And because we're always growing as a company, we always have new opportunities to push people into. And we have a newest -- I guess our newest program that's been incredibly successful over the last 1.5 years is something called Talent Match, which is -- the goal is how do we get the right person with the right skills into the right geography into the right job. And so we were able to match people's career aspirations with the opportunities we have as they come up in new accounts. And so last year, 14,000 people were redeployed onto new opportunities. And when we look at that crew, that 14,000 cohort that -- their attrition rate is 1/3 that of the company average. So it's been really successful. And then lastly, we have a platform, a real-time AI chatbot reaches out to all employees in the company. It doesn't matter what level you're at, some more frequently than others. And it checks in with you to assess what's your mood? What's your engagement? How are you feeling? What's -- and then it looks at you and tries to figure out what's the probability that you might quit. And then it does proactive reach outs to your manager and gives your manager basically an action plan. It say, please talk to your employee. Here's what you should talk to them about. So that we're seeing benefits of that platform. I'll just finish with this. We believe that we can scale, that we can attract, retain, hire, reskill our teams at scale, and we think that's absolutely crucial for our success. So with that, let me turn it over to Mike Weiner, our CFO.

Thanks. Mike Weiner, the proverbial CFO. So I'll try to move on a little quicker and get through this. We got plenty of time for some Q&A. Okay. So how do we kind of think about where we are, right? We have a few -- there we go. Sorry, one more slide. Get the right one. So kind of thinking about from -- in the highest level of Genpact from a financial perspective. We are an incredibly profitable, growing free cash flow generating machine, and I mean that. I'll give you some slides in a little while and some numbers that really highlights that. When you kind of decompose it a little bit more, we're the #1 and 2 player, right, in any chosen market that we're in. We have long-term annuity-like revenue streams with sticky client relationships. So our predictability into our revenue is very good, right, versus I can't think of another industry we have such great predictability into our revenue. We have operating leverage. That's really able to drive our business. We're low capital-intensive business to generate strong cash flow and an incredibly healthy balance sheet. Moving on. We have historically driven solid performance that consists of low double-digit topline growth, steady expansion of adjusted operating income margin with strong cash flow. During the past 3 years, we've had about 10% revenue growth. We've expanded our margin about 70 basis points, right? And we have had free cash flow on average of 1.3x our net income. Again, that is all history. Talk about the future in a minute. Well, let's think about this. Sorry, we're on the right slide here. Yes. Well, we have delivered consistently strong fundamental performance. Our TSR has fallen a bit short of what we believe it should be, right? We believe we can improve our TSR by the following. Continuing to deliver double-digit topline growth year in and year out on a compounded basis. Expand our adjusted operating margin in a more meaningful way than we have in the past, right? And implement a more consistent approach to share repurchases, right, with a deep focus on return on invested capital, particularly related to our acquisitions. Okay. So what does this mean for us for the next couple of years, right? I think that's really the focal point of what we're trying to articulate today, right? We're laying out our 2026 goals to include 10%-plus organic revenue growth, margin expansion and an accelerated pace compared to a more measured approach we've had in the preceding years. Combining strong topline growth, margin expansion, a more steady cadence of share buybacks, we expect our adjusted EPS to grow ahead of our top line. Despite near-term volatility in the macroeconomic environment, we believe we are well set up to achieve these goals throughout today, through 2026 as we've planned out for the future. Okay. So let's talk a little bit about reporting, right? In terms of how we communicate to everybody in this room, and we can communicate to our constituents as we go forward. Over the past few years, the world we have continues to change, right? And we have reassessed our reporting and our disclosure to be more in line to what our clients' needs are and how we think about our business internally, right? Today, we have our Global Client and GE bifurcation of revenue. Today, GE revenue is less than 9% of our revenue, and we're going to retire that revenue split. We also provide verbal insights into our business from a bifurcated revenue perspective of Transformation Services and Intelligent Operations. Going forward, we're going to do the following, right? As Katie articulated earlier, we're going to bifurcate our revenue. We're going to report revenue on a consistent quarterly basis starting in the second quarter between 2 categories, data, tech and AI and digital operations. Katie provided some figures earlier that shows what those numbers are. We'll talk a little bit about their growth trajectories. We're also going to clean up some of the internal acronyms that we think about from our reported segmentation perspective. So today, we have BCMI. We have CGRLH. We have whole bunch of acronyms. We're going to try to simplify that from our reporting segment basis. Okay. So let's talk a little bit more about how we think about growth in the trajectory of our data, tech and AI and our digital operations business, particularly for 2022 and as we kind of move forward. Our faster-growing data, tech and AI portfolio is expected to grow in the high teens rate, while our digital operations should continue to grow in the mid-single-digit rate. I'll have an illustration of this shortly. Directionally, this is how you should think about our business on a go-forward basis. Over time, as we talked about earlier, our data, tech and AI business will organically expand to about half of our revenue. There's no change right now to our 2022 outlook that we articulated during our last quarter earnings of 9% to 11% constant currency growth for the year. But again, the focus is much more on a long-term perspective. Okay. Kind of love this chart to spend a minute with everyone today on thinking about our business and how we'd like you to kind of think about our business. Again, nothing is really drawn to scale or exactly so you can kind of try to figure out where we are. It's kind of more illustrative than anything else, but let me -- let's start. Let's think about our larger digital operation services that have all the properties of a stable revenue growth and steady adjusted operating income margin. That's kind of the blue line. You see it's -- see where we are. On the flip side, you have our data, tech and AI business that we've invested in substantially over the past couple of years, right, that has all the properties of a high-growth business with lower margin profile at the beginning and is quickly scaling up. This business, you can see, we think we're at the forefront of intersecting with us in totality, which will help us expand our margin, right? We think that's not too far off in the distant future. Okay. Now let's talk about some of the hallmarks of our business. Cash flow, cash flow, cash flow, right? We've historically had a low capital-intensive business, as I mentioned earlier. We've had a couple of years of lower than normal CapEx, but really on a go-forward basis, you should think about our business of CapEx percentage of revenue, about 2-or-so percent, and that's going to ebb and flow. What are our priorities for all this cash that we're generating and for the future years of generating the cash? Number one, as I've talked about many times, we want to reinvest in our business through strategic tuck-in acquisitions. I'll talk a little bit more about acquisitions in a slide or 2. We also want to return the shareholders -- return capital to shareholders through dividends and a more regular cadence of share buybacks. We're committed to using at least 30% per year of our operating cash flow to repurchase shares. We have a strong, high-quality balance sheet that you could see here. Our leverage ratio is at the lower end of our 1 to 2x range, but more importantly about this, this debt allows us -- and our capacity to do this allows us to continue to fund acquisitions in the future, which I think are important for developing our business. Okay. So M&A, we get this question quite often right? What is your focus on M&A. First and foremost, we are not in the M&A business of buying revenue or income growth. What we are looking to do is continuing to enhance our strategic capabilities in our -- through leadership domain and our technology experience to continue to move the business forward. Our data, tech and AI business was built through acquisitions as well as organic growth, right? The way I like everyone will also think about our M&A is this is interchangeable with R&D for our business. We're continuously to invest in our businesses through that. We are mindful that we need to do an increased job of enhancing our ROIC and the focus on that in our TSR related to these new acquisitions. And that will be a focus for us going forward. Okay. So where are we? How do we think about our capital deployment. Disciplined M&A could add about 1% to 2% of growth on top of the minimum 10% plus organic growth on a compounded basis as we move forward. We continue to expect a return of capital in the 40% to 50% of our operating cash flow through a combination of share buybacks and ordinary dividends. We will continue to focus the business on making strategic decisions that fundamentally drive revenue growth, expand margin measurably and increased our ROIC over the next couple of years. So when you wrap it up, we go back to this fundamental statement that with -- that Tiger kicked it off with. We're a global company with arguably $4.5 billion revenue, growing at 10% plus CAGR, with significant recurring revenue with deep insight into that revenue as we move forward with long-term engagements, expanding margins and strong cash flows through 2026. So with that, let me call Tiger back up to wrap it up.

So I'll keep that quick because that was a great wrap in the way to think about the business. What we will commit to doing is provide ongoing visibility and some of the revenue cuts and the segments that Mike took you through and some of the supporting data we will define those, and we will give consistent recurring metrics that show progress against that 5-year outlook and plan that we just took you through. There's deep confidence in the leadership team that we can deliver on this. We know that we are in a macro world that has a lot of uncertainty, volatility of all kinds. We know that. We believe that the range of services we now have, those services that allow our clients to access capabilities that help them drive growth, that help them deal with supply chain challenges, that help them deal with regulations. That clearly help them deal with cost challenges, and we know that's coming. We know we can see it. Working capital challenges. Just this morning, mortgage rates have inched up to 6%. That's a new world. We know that. But here's the benefit of what we've been doing over the last 5-plus years, the investments we've done, the capabilities we've built, the solution sets we've created, the benchmarks and the insights and the data that we have and every one of the examples that you heard, doesn't matter whether it was strawberries or it was financial crimes. I don't think those 2 intersect, but strawberries and financial crimes. In all examples, the core theme is those examples are for today's world and for the next foreseeable future of what our clients are going through, we see it. But we believe that we fundamentally have strength to actually help them navigate through what is obviously turbulent times. And that's why we believe in the 5-year trajectory that we've laid out. Our leadership team, broad leadership team and everyone in my team in the room here, in their long-term incentive compensation will be tied to that long-term trajectory that we laid out. So in summary, double-digit revenue growth, gross and AOI margin expansion, strong cash flows built on the back of a market that is huge and still underpenetrated that is getting unlocked by Data-Tech-AI. With significant recurring revenue that is still part of our business with deep intimate client relationships with an operating leverage, a strong cash flow and a strong balance sheet that gives us the flexibility to move when opportunities arise. On the back of a competitive moat that is sustainable and durable that has taken time for us to build, and we truly believe that the combination of that deep industry and process expertise combined with reusable standardized assets now available with multiple partner technologies on the cloud that allows us to operationalize and industrialize insights at a time when our clients want scalability and return on the investments of all the experiments they've done. Our ability to scale talent that every client of ours is struggling through and our ability to hire and reskill that talent as new technologies and new opportunities arise, and back to that deep client intimacy that we are so proud of, that's what gives us the confidence. You've -- for those of you who attended our prior Investor Day meetings, probably the last two, you've seen this chart before. And I think it's still valid. We -- and I've been in this company for -- from the beginning. I believe we are a very different company. I believe we are a very different company from 2019, which is the last time we stood up and talked. But we are still the same company in terms of certain aspects that are core, that many of you who've known us for many years still recognize. It's that combination that allows us to have the confidence that we have in our long-term plan that we laid out. Thank you, and Roger, if you can take it from here.

Thank you, Tiger, and thanks to all the presenters for informative session today. Again, apologies for those on the webcast. We did have some audio difficulties. I think they're corrected, so we apologize for that. We are going to have our Q&A session. So those in attendance, just please raise your hand and let the microphone bought to -- brought to your tables. And for those who are listening to the webcast, there is a button that says Q&A that will bring back the box and please keep forwarding us your questions. So with that, I'd like to invite back up Tiger, Katie, BK, Darren and Mike for the Q&A session. Thanks so much.

It's Bryan Keane, Deutsche Bank. Let me ask the obvious one. The world we're in now, there's a lot of concern about a recession or an economic slowdown. And now the move towards more data, analytics, AI, how do you think that's going to hold up with likely cuts in spend? As you guys said, Genpact was more thought of a BPO consistent platform operations business. Now it's moved a little bit the mix of business and that's where you guys are going for that growth, but does that hold up the same in a slowdown economic environment?

Yes. No, Bryan, it's a great question, and obviously, it's a topic that we think very deeply about also because when we talk to a client, they're dealing with this every day. So -- and it doesn't matter which industry, which part of the globe. So it's a very natural question as to how are they dealing with the current economic environment. So there are 3 parts to the answer. Number one is the Data-Tech-AI that we all talked about is not new. We're talking about a set of services that have been curated, and we've been delivering over actually many years now. Obviously, bolstered by all the acquisitions and the build and the partner capabilities that we've built, so it's not new. What's interesting is that the way that's being used in a number of our solutions and services is to solve problems that if anything, in the current environment, is getting exacerbated. And then when you combine that with we need faster payback, okay, no surprise. We want to scale the few that are working. Again, no surprise. And that scale means we want to talk to you because you're going to scale, you have a solution that's worked for 10 people, bring that to me. I'm not ready to do this thing myself. So back to your question one, cognizant of the environment. Our services and the ones that we have been developing seem to have weathered multiple storms if you go back to the global financial crisis and the pandemic. In both situations, our growth rates were actually in the top decile of the industry, and there's a reason for that. It's the nondiscretionary nature of a number of the services that we have. Our Data-Tech-AI is not independent. It's in the same service arena. So it has as much nondiscretionary component to it as digital operations. So I don't know, Katie, maybe if you wanted to add anything to everything I said.

I would agree with everything that Tiger said. I also think -- because I think I mentioned this during my presentation, our ability to pivot on a cost and growth agenda, I think, allows us to weather many different environments that we face. So right now, how are conversations changing? Candidly, anything that feels truly discretionary is something that clients are looking at as their budgets tighten. That's a fact. The types of data, tech and AI solutions that I talked about are actually fundamentally core to those clients of ours delivering their financial performance to their investors, private or public. I talked about working capital. I mean already, there's a lot of conversations around working capital in this very uncertain environment. I talked about profitable growth. We're going to see more and more emphasis on that. Any of us reading about just what companies are facing with respect to their pricing strategies, how do they pass on the fact that their direct inputs are going up and inflation is driving them to have to think about how to then manage their inventory and their price, that's core to everything I talked about. And so while I think we all have to be very aware and cognizant of how challenging this environment is going to be for many of us, especially our clients, what we're doing is leaning heavier into those core services that will help our own clients whether the next 18, 24 months or longer.

It's Ashwin Shirvaikar here from Citigroup. As we sort of think of the next 5-year journey, right? And you look at Data-Tech-AI versus digital ops, it would seem to me that there is a possibility to accelerate growth as the Data-Tech-AI part gets bigger just mathematically. Is that how you're thinking of it? Can you give some thoughts around sort of the amplitude of that breakout in a downturn scenario. And lastly, for Mike, any reason why you were not more granular about the level of margin improvement bottom line outcome?

I'll kick off the latter question with margin improvement. I'll turn over my colleagues to talk about the revenue trajectory of the Data-Tech-AI. So listen, there's a lot of different variables in terms of our margin, right? And we're talking about this when we peeled back the onion, we developed their 2026 strategy is to really look forward and see where the puts and takes are. What we feel comfortable with in terms of everything that's being thrown at us some recessionary -- potential of recessionary environment, stagflation, all of these interesting things that are going to happen to us. When we kind of look back and we look at all the puts and takes, we've looked at the historical trajectory of our margin expansion, 10, 20 basis points a year, we think we're going to do a little bit better than that, a lot better than that. It's kind of hard for us to put a pin in that exactly. But what I think you can look for over that period of time, and I tried to articulate probably not as good as I could and the wells, I could have -- I should say on that graph of that margin is going to expand at a higher trajectory than it has in the past in addition to the 10%-plus organic growth.

Actually, what I would do is combine, Ashwin, your question with Bryan's question. And if you combine the two, I think we have to be -- we have clear views about the next 5 years. That's not going to be a straight-line trajectory. We know that. That's a recognition of the reality that Bryan, you pointed out. So both on the margin side and the growth side, we believe we have the 10% compound annual growth rate on the margin expansion clarity over the next 5 years. How that's exactly going to play out, and that's why you won't find the granularity and the specificity because you really don't want to stand up and be a crystal-ball gazer about what's going to happen with recession and so on.

And I'll just add one thing. In addition to -- I talked a little bit about how we view R&D and M&A., but there is an inherent R&D budget within our outside of M&A that we're going to continue to invest in for our franchise for the multiple years to come after 2026. So we have to look through the lens of all that when looking at solution sets for the future.

Dave Koning at Baird. And I guess, on inflation, a couple of things and margin expansion. Kind of you're talking about accelerating margin expansion at the time of the biggest cost inflation period in about 30 years or whatever. What are you seeing on the cost inflation side? And then secondly, is there demand -- outsized demand right now from clients saying, we need a lot of help on cost, we need to use you more? So both of those questions.

Maybe BK, you want to start with the demand from clients?

Yes . And David, we were talking earlier on as well, we clearly are seeing a lot of demand signals on the cost side of the house. And fortunately, we have solutions on the sales side of the house, supply chain side of the house, cost side of the house, and all of these are interconnected. A number of these are also driven by talent shortages that they are seeing in their economies, and clearly, we being an expertise-led talent engine is another conversation that is happening. Fundamentally, if we look at our demand pipeline, that is at a very encouraging space, and we continue to see, and that's why a little bit of a certainty that we are talking about of 10% plus organic growth for a sustained period of time.

And then I guess the other part of my question was just on the cost side. Like what are you seeing inflate right now, and probably, everything has been inflating somewhat, but how is that impacting margins, I guess, a little more real time?

Yes. Maybe I'll kick it off and back to you. So if you think about it, we're probably earlier than most in calling this out, right, in terms of what we've seen. If you look at attrition, but ultimately wage inflation really is kind of run away from itself and in the industry. I think it's actually a 40-year high in inflation, at least what we're seeing here in the U.S. So it's unbelievable. Some of the down -- some of the negatives of having such a long predictable revenue in these long-term contracts, are you -- we have a timing gap between we're able to get price that insulates us from some of these increased costs. We've been spending the last couple of quarters working through that and our performance reflects that and our guidance reflects it. What we hope to do is be in a situation where we're able to get better pricing or real-time pricing on a larger piece of the portfolio as it continues to stabilize. I think we're moving through this year as expected, and we're getting things, including off-cycle rate increases or normal [indiscernible] adjustments. And for some of the newer work that we're getting, we're getting current rates for that business. That I don't think is going to stop for the foreseeable future, I think what we've seen is not really the 40-year increase in inflation. I think the steep of how quickly that's come up, it was much more gradual, it wouldn't have been such a -- and it hasn't been that great a shock when you think about the totality of multiple industries in this industry as a whole. But I think that's really what we're dealing with. Do you want to add...

And I'll just finish by saying, David, the connection between what our clients are facing and what we are facing, the overlap on that is 100%, right? That's one of the unique things about what's been happening in the world. What that does is, it allows both of us to sit at the table and actually allows us to sit down and say, how can we help you, which includes them understanding that we are also facing the same inflation. That then adds fuel to 2 engines. Engine number one is what Darren talked about, which is digitizing operations. There is a lot of momentum that we are driving and our clients are excited about the fact that we are driving in digitizing operations, both for the operations that we run today as well as when you have a new conversation on taking over and running operations for our clients. So that's one. And second is, again, back to Bryan's first question on Data-Tech-AI. It adds fuel to the engine of as long as there is conviction that the Data-Tech-AI service that you've come and spoken to me about is going to solve my problem today. I need it because that's the environment I'm facing. So this is not discretionary. My supply chain problem is today. Otherwise, I can't deal with it. My inflation is today. So if you're going to help me with inflation, oh my God, you're in. And of course, working capital, I mean it's very interesting. The speed at which working capital is going to come back, we've been in those environments before. Global financial crisis was a time when working capital went through the roof in terms of demand. We see working capital demand coming to us and all our solutions around it coming to us in a rapid hurry.

This is Zack Ajzenman under Bryan Bergin at Cowen. A question on the margin targets through '26. What may be the more important initiative for upside? Is it the mix in services? Or is it the transition of FTE to non-FTE or the contract structure?

Darren, do you want to go?

Yes. I mean I'll start that. So I would say, the margin -- when I look at the margin and the acceleration of margin, I think the automation will drive it significantly. But if we -- we won't benefit as much if we don't couple it with the alternative commercial models. Otherwise, if we're building on commercial models and we're limiting labor, we'll -- we wouldn't make as well as we would the other way. So our goal is to push extensively into the commercial models, which, by the way, means we can actually underwrite a lot of the digital investments instead of our clients making those investments. And it also means we can reuse those investments and build a platform that more clients can scale in that platform. So that's what I see a major opportunity for accelerating margin.

Mike, anything to add?

Yes. I would just say also, on the data, tech and AI, as we articulated earlier, scale is here, right? We have a very profitable business, right? We've invested for scale over the last couple of years. I think, BK, we went back and we said, what did we say in 2019? What were the spots that we picked and have that work. Well, those were the investments and the calls we made there, and now they're paying dividends. And I think you're going to see that trajectory increase in addition to, as Darren talked about, in terms of our digital operation margin, which is already a healthy margin continues to grow, but that inflection point is going to help expand the margin above that historical average that we've had in the last couple of years.

And is the right way to think about it? Gross margin expansion opportunity is more so than the SG&A leverage? Or is it going to be through both?

Well, there's obviously going to be SG&A margin leverage in totality. But again, this mix that we're talking about and what Darren was talking about in terms of digital operation is going to hit gross margin, which is a more powerful measure of really the business performance of us. We have levers in the business to do various different things, but again, what we're focused on is gross margin expansion over that period of time.

Got it. And then just one on for near term [indiscernible]. Any update on the pricing discussions or the off-cycle increments in the context of the macro just getting a bit more difficult over the past few months.

I can start. Yes. So -- and I've been involved in all those conversations are not fun conversations. And they usually start, by the way, with attrition. Your attrition is really high Genpact. How do we deal with it? And I keep saying the clients, you got to help me. You got to help me because if I can't retain my people, and I can't pay them, I'll going to have a problem. So that's usually where it starts, and the clients get that. They have the same pain points, and they're feeling it from -- and the conversations they're having with their suppliers. So we've been successful in achieving the targets we set for off-cycle price increases. In fact, we don't see that slowing down yet. So -- and we have had many clients come to us and say, come back to us in Q3, if you need to come back for -- they don't like it, obviously, but if there's another price increase required as long as we're not going to see too much more attrition to your staff. So the clients have actually -- the long-term clients have been incredible, and we have incredible relationships with them. I would add, though, I can't think of a single client conversation yet where they said, listen, do me a favor, I don't want to be stuck investing in people forever because I get this wage inflation, help me automate as much as possible. And by the way, I'll pay for that. If I can automate to eliminate the dependence on people so I can minimize my wage inflation challenge, we'll do that. So I hear that with every client.

Yes. And as you can imagine, that's how we lead our conversation because you talk about client intimacy. It comes from first solving the problem for the client. So when we have a price conversation, it's not a price conversation. It never will be a price conversation. It will be a value conversation, and that value then leads to a price conversation where there is a matching of goals and then think about a conversation that pivots to, therefore, let's change the commercial model. Therefore, let's drive digital operations harder. Therefore, actually think your Data-Tech-AI services that you talked about 6 months back is even more relevant now let's talk and start the journey now. So it's really not a price conversation. It's actually a value conversation. Obviously, it ends up with one of the levers being priced. It's longer, and it's all off contract cycle. So -- but this is the long-term business that we are in. So our objective here is to create that long-term value for our clients. And if that includes dealing with the current environment, I think our clients are more than happy to sit down and have that conversation.

It's Puneet from JPMorgan. So it's great to see 10% revenue growth targets. To get there, to get to 10% organic growth over the next 5 years, what needs to change in how you operate, how you manage client relationships, how you sell your services to clients? Like you talked about driving more renewals, more sole-sourced. Does anything need to change in your sales model, in your client engagement model to get there? Or would it be just like the mix towards more Data-Tech-AI that will drive higher growth?

I think, Puneet, it's -- the first thing I'll say is, there is nothing that needs to change tomorrow. What you saw as a combination of the clients you target and the prioritized clients, which we've done over the last few years, it's shown results. So all we are saying is, we're going to double down on that. We're going to prioritize clients even more and make sure that they get to 70% plus of our total revenue coming from those prioritized clients. Taking a range of services to them that is relevant for them in the environment that each of them are facing, again, we've done that. So that's not new. We just want to make sure that we continue down that journey and double down on those. Number three, making sure that we, in a very agile way, recognize the signals that are relevant in particular. The semiconductor example that Katie talked about. If you had talked to us 2 years back, we did not have a semiconductor industry focus. We did not have a team, and Katie talked about hiring a set of people who understand the industry very well. We did not have that team. We were just a couple of years into our Barkawi acquisition. All of those have come together. So our ability to agile -- in an agile way create services that are relevant for our clients, which we've been doing, continuing to accelerate that. And then I have a fourth one, which was...

I think one of the other investments that we've made over the last, call it, 2 years, has actually been in a specialized, call it, technology data sales team who complements our enterprise sales team and who are really focused on bringing those partner technologies and finding the opportunities aligned to our clients' own technology roadmaps. So to your question, obviously, we're augmenting skill sets and capabilities to make sure that we have that 360-degree selling view.

So Puneet, one other thing I would say is, I think we have -- the one change in the last more recent few quarters is probably a hard look at the term that Darren had in his page, portfolio mix, which includes taking a look at services that we think we experimented with and hasn't worked. Clients that we have been on journeys with that don't seem to have delivered what client expected and we expected. Locations. So everything -- optimizing everything on a faster cycle, in a world that requires faster cycle is probably the new thing that I would add to everything else that we've been doing. Yes, Roger?

So Tiger and team, we have a few that came in from the webcast. First is on revenue visibility. As we grow the data, tech and AI business, what does that mean to your visibility? You're mentioning roughly 70% is coming from annuity. So as you scale up that other part of the business, what happens to visibility and also the duration of contracts?

I'll start with the visibility one. We've had a business where our visibility to revenue has always been in the ZIP code of 70%, 75% for many years now. Digital operations very clearly has always had strong visibility and that obviously will just continue. On Data-Tech-AI, it's important to understand that many of these are multiyear engagements. I thought the examples that both BK and Katie shared, brought that to light very strongly. These are not short engagements, these are multiyear engagements. They just grapple with problem one, then connect it to next problem, then next problem and all of those are interconnected. So if I take that conversation forward, Data-Tech-AI and digital operations, we don't see a material change in that visibility going into the future.

Yes. I would just build upon that, exactly what Tiger said. The recurring nature of that business, just people don't understand. I think Katie did a great job of articulating that today. So at the end of the day, we're still going to have that visibility, but this is not short-term consultancy type work.

I guess I have a few questions on M&A. Question is what are you still looking for in terms of your M&A targets to help grow your business? And what are you seeing in terms of valuations in the M&A market right now?

Why don't you start with what are we looking for, and then Ezra, you can jump in.

Absolutely. So I think we said in the presentation and actually, Mike put it nicely, which was to say we continue to see active tuck-in acquisitions around capabilities to fill out the portfolio. We talked a lot about the market potential and the transition of the market towards data, tech and AI. The exact size configuration will shift with what happens in macroeconomic environment, but our ability to continue to tuck in analytics, data and tech skill sets is absolutely critical and forefront to us. We look for those skill sets associated with, again, the prioritized service lines that we talked about. That's core to our strategy. And so we continue to have a very active funnel. We look at almost everything that comes across in those spaces. We're just very diligent in terms of what we pick up. Ezra?

Yes. And commenting on that...

Ezra is our M&A leader for the company and partnerships.

Commenting on valuation, in the spaces where we're looking, it's still very [indiscernible]. We have not seen anywhere near the valuation adjustment that we've seen in the public markets in the private market. So I guess just reiterating what Katie would say, we remain very active. We think we're seeing everything that's relevant to our business, and we're very disciplined around valuation.

We have one more. I can also ask that came in through the webcast. If by chance the economy does slow and you don't, for whatever reason, achieve your 2022 targets, are you still able to achieve your longer-term targets that you outlined earlier in your presentation?

Yes.

Very simple. So still today, we're having earnings in about 6 weeks, so we'll provide additional color on that. We feel there's really -- we're on target with the previous guidance that we gave, and I don't think it really changes much when we think about 2026, and we pressure tested this model quite a bit.

Yes. I just want to reiterate. The reason for everything that Mike just said is the fact that we know that the world could, from a proportion, change a little bit more to cost, a little bit more to working capital than just 12 months back. And the fact that we have that diversity of services with many of them being nondiscretionary and having gone through 2 such cycles where because of the nondiscretionary nature of those services with much less weaponry at that time in terms of the range of the services, even 2 years back and of course, 10 years back, I think gives us that confidence.

Paul Bornstein, Black Diamond. I'm just curious on the sales cycle. I'm trying to understand how competitive it is for both existing and new customers? Because I'm trying to see if the length to get them on board is taking a little longer, given the expected slowdown with the Fed and inflation and what have you, trying to get the thinking to see whether it's going to start taking a little longer to do that.

I'm going to have my Chief Growth Officer, Riju, comment on that.

So I'll answer the question in 2 parts. First, the speed with which problem resolution needs to happen given the environment has gone up. Equally so, the deal cycles have reduced in the sense that the cycle time of the deals has reduced as well as the deal size. So the speed has increased because the need for problem solving has gone up. The deal sizes have reduced, so therefore, we'll see more acceleration in closure. The sizes will be lower.

I mean the bottom line, I think, is multiyear flip the switch and let's get into this 2-year journey. At the end of 2 years, we'll see some big benefit is going to get broken up, but that also means speed will increase. So it's a nice combination. It means that you've got to be agile enough to shift the way you engage, and that's the agility that we actually often pride ourselves on.

So again, Ashwin Shirvaikar from Citi. On that question with regards to smaller deal sizes, I just want to be clear, is that because of the penetration of digital and just the nature of digital that you have to be more agile and you're more embedded? Or is that a reflection of economic cyclical change?

I would say Ashwin -- actually, it's a great question. I would say, the recent thing that we've seen is more economic and a realization that most of our clients may not necessarily jump into a large multi-year engagement where you don't see the benefit and payback in a reasonable timeframe that they can lock down on. Now the interesting thing is, when you talk about digital transformation, it is possible to break those down into the right modules. So a little bit of this, I can do it, I need it, So why not do it? You don't know which is -- where there's a chicken or the egg. I don't know, Katie, if you want to add anything or BK.

Look, and I can really agree with what you said and what Riju mentioned. At the same time, we also see the other end of the spectrum where, as an example, large med device -- medical device company or a large food service company are engaging in those multiyear concessions at the same point in time with more speed. So I think -- and that is to the earlier point that was getting made centered on cost because they are watching the signals that are going to come through. So I think we do see things at both ends of the spectrum.

Both ends of the spectrum. And I think that's a great point, BK, because one of the reasons we believe that prioritized accounts and prioritized clients is a very important step in our journey is because not only is it important to focus on a set of verticals, a set of services and a set of geographic markets, we believe that someone may belong to a vertical of our choice, a service line that we like and a geographic market, but 2 clients in that will behave differently under the same circumstances.

I just want to come back to the question because I want to make sure nothing got lost in here, which is irrespective of large deal, small deal, what is a fact. And I think what has been driven with digitization is outcomes are expected faster. Now why is that important? Because as Mike said, we pick spots, sometimes narrow spots in industry service line where we're #1 or #2, and we've been running those processes and building those capabilities for a long time, which allows us to assuredly deliver outcomes in a much more rapid cycle time and that's a competitive advantage. There isn't space anymore for the generalist, right? The generalist who comes in and learns on the job and in 12 months, 18 months, 24 months is still trying to deliver the return, has no right to compete in this market. It is all about how one is specializing in solutions in those industry domain areas irrespective of deal size.

[indiscernible] from Puneet Jain at JPMorgan. A brief one. What do you view as the biggest risk to achieving your 2026 sales and margin targets, respectively?

I think we kind of referred to it in the first question that Bryan asked. I don't think we can put a pin on is there going to be a deep recession for 5 years. Who knows? So I think we are talking about a 5-year environment, and we've built on the basis of some degree of current volatility. And if that were to deepen for a long, long period of time, then I think we're talking about a very different world. I would say that is an example. Anything else, I don't know Mike...

It's the proverbial black swan event, right? So when we kind of think through this, right, the puts and takes of a mild recession or this or that. Listen, I can't tell you if next pandemic comes or something like that, but if you look at any economic cycle over the last, I don't know, 10, 20 years or so, right? And we have a good -- we have a long enough period of time, I don't think there's really anything negative that will hit us from that perspective.

The one other thing I would add, which I don't think we've spoken about, hence it's worth reflecting on is that we've been talking about this in the last few earnings calls. Our growth has now been pretty pervasive across all our industry verticals. Now embedded within that, our different clients will behave differently, but it's pretty pervasive across. It also tells you that the solutions we have are capable of dealing with all the industries that we serve. Yes, Roger?

A few more that came in from the webcast. One, back to M&A. Can we comment on any recent success or failures?

Do you want to take that? Recent success or failures, I assume that they mean the performance of the organization that we've acquired as opposed to transactions. We're really actually thrilled with the string of recent acquisitions that we've done, some for strategic reasons, some for right out of the gate revenue growth, et cetera. If I just stay back to the last 2 years, and I talk about -- Tiger mentioned 2 acquisitions we did that squarely put us in the Adobe ecosystem that has significant strategic value for us with respect to leveraging our franchise in our enterprise clients with experienced transformation. And so we're thrilled with both how that accelerated our journey with that partner who's the leader in that space in my mind, and how those teams have performed, both in their own clients that they were working before and the cross leverage that we've gotten and actually some Fortune 50 companies. So we're thrilled with that. I gave you the example of strawberries. Actually, that story originated with another acquisition Enquero, who is really a data and cloud engineering firm. And their ability to bring the beginning of that journey to us and then for us to add additional capabilities in around experience and technology and the integration of that into even bigger solutions is of tremendous value to us and our clients. And so from both a strategic perspective and from a client growth perspective, we're very happy with the acquisitions that we've done.

And one other one that came in online. Within your various service lines, are there any that you expect to perform better or worse in the event of a recession?

We've talked today and actually BK laid out 3 where we're putting a lot of energy behind, but I don't want to actually say those at the risk of ignoring others. Finance and accounting, we are #1, and we continue to fuel the growth. And that -- and as I said, that has great leverage on working capital, profitable growth and cost reduction, tremendous for this environment. But if I were to look at sales and commercial, supply chain and risk, I mean I love these investments. We started them 5 years ago. Risk isn't going away because of a recession, it's a regulatory requirement whether it's something that a digital platform company is wrestling with or a bank or a fintech. How we pivot among our customers will vary, but that is a topic that's going nowhere right now. Sales in commercial and supply chain, the stories, as we said, may pivot from how can I have more people helping with my growth to how can you help me optimize pricing. Or supply chain may pivot from how can I invest in the next 3 years of technology to, hey, I need quick hits on getting my analytics sharper because I'm not sure that my inventory allocation is getting me the best returns. It's within those areas our ability to move around that I think will allow us to be very successful. And so again, tremendously thrilled with those investments, and we've been consistent in the areas that we've said we were investing in and just added more fuel to them through capability.

I have one more that came in from the webcast as well. In the past, you've talked about some very large macro deals, clients such as Walmart. How are those engagements doing? And is that helping you lead to other large engagements?

BK?

Yes. Engagement in any of these large clients continue to be progressing very, very well. I spoke about Net Promoter Score as a very defensible moat for Genpact, and we track with all of our clients in a very structured manner, and it continues to be progressing on a very, very good journey.

Any other questions?

It's like that's it.

We have lunch getting ready.

Okay. So thank you very much for attending. We do have lunch that is being served out in the hallway and our leaders will be around for networking as well. Thank you so much, everybody.

Thank you very much.