Revenue Outlook and Headwinds
Q: How will pluses and minuses affect revenue next few quarters?
A: We are seeing three headwinds impacting our Q4 guidance. First, client volume de-commits and automation led to about a 1% revenue headwind. Second, accelerated offshoring contributed over 0.5 basis points of headwind. Third, not chasing highly price-sensitive business resulted in less than 0.5 basis points of headwind.

Accelerated Merger Synergies
Q: Why accelerate merger-related costs and investments now?
A: We can bring forward $120 million in synergies into 2025, hitting the ultimate synergy number a year ahead of schedule. This allows us to reallocate resources towards transformation activities, including technology investments and upfront investment in transformational program ramps.

GenAI Investment and ROI
Q: What is the thought process behind $100M GenAI investments?
A: We are at a run rate of $100 million annually. Success means getting ROI on our spend by the end of 2025, with the margin profile accretive to our business. If we don't see commercial success, we'll pare down the investment.

Impact on Margins from Investments
Q: How will new technology products impact margins?
A: Our investment is already baked into our $100 million run rate. We are hiring new skill sets without increasing operating expenses. Fluctuations in SG&A in Q4 are due to transformational programs where we're absorbing upfront costs in exchange for longer-term contracts.

Offshoring and Margin Benefits
Q: How long to see margin benefits from offshoring?
A: It generally takes about 2 to 3 quarters to realize margin benefits after fully ramping offshore. Duplicate costs during transition impact margins initially but improvements are expected in the back part of 2025.

Automation Plans and Acceleration
Q: Is there a new target for annual automation?
A: No new target, but we are accelerating planned automation due to client demand for in-year savings and new cost structures in 2025. The scope of what can be automated hasn't dramatically changed, but timing has.

Consolidation Opportunities
Q: Do consolidation opportunities have significant potential?
A: Yes, we have high probability of consolidating volume from other partners into us when clients seek fewer partners and full solutions. This is happening faster than expected across most verticals.

GenAI Adoption and Impact
Q: Are clients more receptive to GenAI; impact on business?
A: Close to 1,000 customers, nearly half our client base, are using GenAI we've installed. Non-customer-facing applications are widely adopted; customer-facing still sees reluctance for AI-only interactions. We've added 25 new at-scale GenAI implementations this quarter.

TCE Segment and Volume Pressures
Q: Should we be concerned about TCE volume pressures?
A: The sector has been muted; we're gaining share but underlying volumes, especially in consumer technology and electronics, are very muted. As the macro improves and refresh cycles begin, transaction volumes should pick up.

Catalyst Business and Interest Rates
Q: How is Catalyst business trending with interest rates down?
A: Interest rates haven't had the impact we'd hoped. However, Catalyst is enabling technology deployments like Microsoft Copilot and LLM tools. We're happy with Catalyst and it supports our transformational deals.

Significant Expenses Explained
Q: What caused the increase in other expenses this quarter?
A: We had $33 million in foreign currency losses due to USD weakening against currencies like the peso, impacting intercompany balances. We back this out of our non-GAAP net income and EPS metrics.

IX Hello Tool Pricing
Q: How will IX Hello tool pricing affect volumes?
A: We're comfortable cannibalizing certain business as clients consuming more technology is beneficial. Clients can buy and deploy IX Hello on their own or with competitors; it's priced per seat with volume discounts.