Growth Outlook & Revenue Guidance
Q: What's causing the change in growth outlook—broad slowdown or client-specific issues?
A: EPAM is experiencing delays and reduced scopes in many programs, indicating a broad-based slowdown rather than client-specific issues. Client decision-making is slow, budgets are being partially released, and some programs are being descoped, leading to more realistic guidance. There's also an incremental weakness in Europe.

Impact of Shift to India Delivery on Revenue
Q: How much does the shift to India affect this year's revenue growth?
A: The mix shift towards India is producing a revenue growth headwind of approximately $100 million year-over-year due to lower billing rates, despite solid profitability in India. This shift is impacting the revenue growth rate measured in dollars.

Margin Outlook
Q: Can you provide additional color on margins and their expected cadence?
A: EPAM expects Q2 gross margins around 30%, with first-half margins at 32%, second half at 32–33%, resulting in a full-year margin of 31–32%. Margins will improve in the second half due to cost focus and more billable days.

Demand Environment and Client Delays
Q: Are project delays widespread, and which verticals are affected?
A: Delays and slowness in client decisions are broad-based, not limited to specific verticals. Some sectors like healthcare, life sciences, and energy are performing better. Clients have budgets but are slow to activate them, particularly in Europe.

Confidence in Sequential Growth
Q: What gives you confidence in sequential growth in Q3 and flat Q4?
A: Sequential growth in Q3 is expected due to seasonality and more billable days, rather than improved demand. The Q2 to Q3 growth will be driven substantially by more available bill days in Q3.

Pricing Environment and Discounting
Q: Have you seen changes in the pricing environment, and are you offering discounts?
A: The pricing environment remains challenging with no improvement. There's market pressure towards lower bill rates, especially with the shift to India, making it difficult to achieve rate increases.

Headcount and Investment Plans
Q: Are you adjusting growth investments and headcount plans due to the demand environment?
A: EPAM will continue to invest in India and Latin America. They may reduce in-market resources where there is excess bench. They aim to meet demand as it returns while managing costs.

Clients Taking Longer to Pay (DSO Increase)
Q: What's happening with Days Sales Outstanding (DSO), and is there a concern about collections?
A: Clients are taking more time to review and make payments, with DSO likely to remain above 70 days for the remainder of the year. EPAM has no concerns about revenue recognition or potential write-offs.

Planning Assumptions and Conservatism in Guidance
Q: How are you changing planning assumptions for pipeline and guidance?
A: EPAM is adopting a more pragmatic and conservative view, focusing on what they can predict over the next 90 days, due to the unpredictable demand environment.

M&A and Share Buybacks
Q: Are you considering additional M&A or share buybacks?
A: EPAM plans to continue both strategic acquisitions and share buybacks in the coming quarters , using cash to expand their market position and return value to shareholders.