Question-and-Answer Session
Ladies and gentlemen we now begin the question-and-answer session of our conference. [Operator Instructions]. Our first question comes from the line of Joseph Foresi of Janney Montgomery. Please go ahead.
Joseph Foresi - Janney Montgomery
Hi, gentlemen. It appears that you guys remain confident in growth in the back-half of the year. I was wondering what gives you confidence in things rebounding?
Girish S. Paranjpe - President, Finance Solutions
Hi, Girish here. At this point of time it's a assessment based on how our clients are reacting because we had a chance to talk to many of our senior clients and what's happening to their IT budgets. And in most cases we have the sense that the budgets have not been significantly cut. But there is spend... there is a spend caution and our feeling is that as the market settles down it will get back to business as usual, and hopefully the spending will come back.
Joseph Foresi - Janney Montgomery
So, is your assumption based on the economy recovering or is it based on see what your clients are going to do?
Girish S. Paranjpe - President, Finance Solutions
It's based on two things. One is that a lot of the freeze on budgets is because of two reasons. One is because there is so much turmoil in the financial markets. It's also based on the fact that there has been lot of change in the management teams, especially in the financial services world. So, as that new team settle in and the kind of turmoil in the financial markets subsides, we are hoping that will be back to business as usual in the second half.
Joseph Foresi - Janney Montgomery
Okay.
Suresh C. Senapaty - Corporate Executive Vice President, Finance and Chief Financial Officer
Also Joe, if I can supplement, if you look at the guidance that we are giving about $1,060 million as $1,032 million of quarter four, on a combined IT services point of view. It was off to sequential of about 3%, same what we gave year before, exactly one year before for quarter one of 2007-08. And that is about 34% year-on-year. Although, if you adjust for the acquisition, it still works out to be 26% year-on-year.
Joseph Foresi - Janney Montgomery
Okay, it looks like the models are also sort of naturally adjusting to what's been going on in the economy. Are you guys seeing the cooling in the labor market and also, I know you said that you did expect pricing to be stable. But is the magnitude of the upside on the pricing cut down?
- To read the full transcript on Seeking Alpha, click here »
