I could go on and on and on. And so consequently, what I would say is that we’re in that classic cycle just like we were when we entered the pandemic, where there’s about a 90- to 120-day period of time where clients are getting their bearing. And when they do that, they tend to slow down, become more introspective, try to figure out what is actually going to take place in the economy. That’s exactly what happened with the pandemic. And then when things cleared and they understood what the new normal was, they frankly got right back to business. I think we’re in that exact same situation right now. I think that a high percentage of the marketplace overstaffed because of the pandemic and all the stimulus money that was out there. And I think that now they are trying to shed a lot of that cost structure for lack of a better term.
I’m speaking about the clients. I’m not speaking about us. And consequently, I think that this is touching pretty much the majority of verticals. Is it impacting our public sector vertical? No. Is it impacting our federal vertical? No. Is it — but do we think that it’s hitting all the, what I’d call, commercial aspects? Yes. Not everybody is cutting back, but they’re all acting in that classic kind of nebulous mode of we don’t know what our forecasts are going to be for fourth quarter, we’re going to hold off, we’re going to wait till the last minute, we’re okay. Our service levels aren’t as good as they historically would be because we don’t want to be caught in an overstaffed situation, et cetera. And so that’s what we’re seeing. And I would be shocked if any of the other companies that provide capabilities like ours aren’t seeing the exact same thing.
Both Shelly and Dave talk to our clients on almost a daily basis. And this is the feedback they’re getting from the clients. When I talk to clients, I’m hearing the exact same thing. So I don’t know that I’m being specific in answering your question and telling you specifically in what area, but we mentioned telecom in my script, and I think that’s a good example. The telecom industry depends upon new product introductions that have technological step changes to motivate people to change out their product. And it’s no secret, without mentioning names, that these products are feeling more like the same year after year. And so people are satisfied with keeping the product that they have. And that’s causing these companies to not have the volumes that they would have to onboard net new customers, net new technology, technical support, et cetera.
So that’s an example. And I also think that with recessionary pressures, the consumer is definitely pulling back on nondiscretionary. So I could wax on, but I don’t want to suck up all the oxygen here. So I hope that’s helpful. And I’m happy to talk to you more offline if you’d like to do so.
George Sutton : That’s great, Ken. And I would let you know you are young relative to our presidential candidates if that’s helpful. So you made the statement that the offshore pipeline was up 50%. I just want to make sure we fully understand your readiness to take on that kind of growth and what that means for the broader business opportunity.
Kenneth Tuchman : So we’re definitely ready. And Shelly has made it one of her highest priorities to get these additional offshore markets open so that our clients can have diversification. And so we’re live and operating in all these other new markets that we’ve mentioned, whether it be South Africa, whether it be Honduras, whether it be Thailand. We’ve got Malaysia that’s just now coming online. We’re expanding further into Latin America and expanding our Mexico operations. I could go on. I’m sure I’m missing countries. We’re live in Egypt. We’re expanding in Colombia, et cetera. And so yes, we are — we have — we are absolutely ready. We’ve got all the management in place in all these different regions, and we’re absolutely launching new business in these new markets.
Shelly Swanback: And it’s resonating with our clients. That’s why you see our pipeline, whether it’s a pursuit of new logos or expansion with our existing clients, really across the board.
Operator: Our next question is coming from the line of Bryan Bergin of TD Cowen.
Jared Levine : It’s actually Jared on for Bryan today. In terms of offshoring, any sense on the headwinds to engage growth year-on-year in 3Q related to existing clients moving from onshore resources to offshore resources? And then is this headwind to growth anticipated in increase in FY ’24 relative to FY ’23?
Shelly Swanback: No. Actually, that hasn’t really been a headwind for us. I mean, I would say so far, most of our conversations with our existing clients really are about expansion, new lines of business, additional volumes of the work we’re doing today and just diversifying the footprint in places that we do that work. So that wasn’t a material — hasn’t been a material headwind for Q3 or for this year. And I think, again — I think — we’re also excited just about the new logos in our pipeline because of our new offshore locations that we can now offer.
Jared Levine : Got it. And then do the volume forecast being provided by clients now appear to be conservative. I know last quarter, you mentioned you thought there were certain client cohorts that the volume forecasts were pretty conservative. But any kind of change in view on the volume forecast that are being provided now by clients?
Shelly Swanback: Well, I would just sort of point back to what Ken was speaking about earlier. I mean, I think certainly, our clients are being — I guess, they are being conservative in their forecast based on budget pressures. We have some — we always have some variability where clients are too conservative and then come back and decide that they need more volumes. But as Ken said, I think everyone is preparing for the worst, if you will, looking at what their demand might look like for the next quarter, and no, not really a whole lot more to say there from that. And I would say some of them are conservative, will come back, and they’re all being very careful right now.
Jared Levine : And if I could sneak in one more quickly, what’s your revenue visibility to the midpoint of the guide currently? I don’t think I heard that.
