Thank you Mr. Shah. The next question is from the line of Mr. Rod Bourgeois from Bernstein. Please go ahead.
Rod Bourgeois – Bernstein
Hi there. You are essentially dropping your volume growth outlook for Fiscal 09 by 2.0% and I wanted if I can get some specific on where that 2.0% point decline in the outlook is coming from and this is the specific question I am wanting to ask you is how much of the decline in your growth outlook is stemming from known issues that you have already uncovered in your deal flow and in your existing clients versus the fact that you might be adding some buffer in your outlook to account for unknowable events that might stem from economic issues. So in other words, how much of the decline in your guidance due to issues that are already known versus you sort of prudently adding some buffer in your outlook given the more uncertain environment that we are in? Can you disaggregate it into those two categories?
Ram Mynampati
Rod, this is Ram Mynampati here. To a large extent that is attributed to the unknown. So we have factored all the known parameters into the guidance as much as we can. The reduction that we are projecting is due to the uncertainty in the environment, the unknown impact that we might have in specific sectors like BFSI things like that that we can’t put our finger on exactly what is happening we know something will happen but we do not know what.
Rod Bourgeois – Bernstein
Got it that probably makes sense. So the follow up on that can you characterize how your pipeline has changed in the last kind of year or year and a half? Specifically what types of deals are embedded in your pipeline today versus the kind of deals you were seeing a year ago? Are you seeing smaller deals today or you are seeing less concentration of your P deals in your pipeline? Have there been noteworthy changes in the types of deals that are currently sitting in your sales pipeline?
Ram Mynampati
There are may be a couple of qualitative aspects that I can point over in the pipeline. One, there is a greater instance of deals that we categorize as transformational in nature figuring in our pipeline today compared to may be a year ago or two years ago where if we did something that was more happening in light of our engagement taking us to a transformational opportunity as opposed to campaigning and opposing a transformation opportunity with a planned effort. So there is a clear qualitative aspect to the pipeline. Second is as I said earlier I think a greater portion of the organizational businesses today is being addressed by ERP. So clearly the pipeline would have a greater presence of ERP-oriented deals today. The third probably is in line with the focus that we brought to specific competency such as engineering services. We would see pipeline consisting of not one competence but more than one competencies factoring into an integrated service offering. So those are the qualitative aspects but in terms of numbers and value and all that that would be in line with the sign of times rather than the dramatic difference in any of those aspects.
Rod Bourgeois – Bernstein
I got it. And then you have made some very good progress in reducing your DSOs and your unbilled receivables in the quarter that’s very nice to see. Can you comment on the outlook for DSOs and unbilled going forward assuming that you are going to continue to have a focus on those metrics thanks?
V. Srinivas
Rod this is Srinivas here. Yes as you have rightly said that we are continuing to focus on these two metrics. Definitely we want to reduce the DSO as much as possible. That is one of the important areas for an organization. So while we were not able to commit any number there but definitely if you further ask me 100 point you can see improvement there. So is the case with unbilled revenue.
Rod Bourgeois – Bernstein
Right. Thanks guys.
V. Srinivas
Thank you.
Operator
Thank you, Mr. Bourgeois. The next question is from the line of Mr. Pankaj Kapoor of ABN Amro, please go ahead.
Pankaj Kapoor – ABN Amro |
