Question-and-Answer Session
Operator
Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. (Operator instructions). Our first question is from the line of Mr. Moshe Khatri of Cowen & Company. Please go ahead.
Avishai Kantor – Cowen & Company
Yes. Hi. It is Avishai Kantor for Moshe Khatri. Just two, three questions to begin, one can you comment on the major drivers for the strong performance in both BFSI and retail?
S. Gopalakrishnan
I will start with retail and I will ask my colleague Ashok to talk about some other -- some other positives on the BFSI space, where we are getting growth. So in the retail you know one, we work with some of the largest retailers in the industry, so we have very strong relationship. I think we work with I think seven out of the top ten retailers.
Second, retailers are going through a couple of very interesting transformations. One is the move from print media to digital media, the digital marketing campaign, digital marketing transformation they are going through.
Second is digitization of the information flow in the supply-chain, so that they can get near real-time information about sales that is happening in the store, all the way down the supply-chain. The third is actually improvements that are happening in the store to provide better customer service, a better technology-based environment in the store for self service and things like that. So there is investment happening in the retail space even now.
The third thing is, we work with some of the largest grocery companies, and in the downturn, they have seen actually a positive impact on their business. It looks like consumers are eating less in restaurants, but buying ready-made meals or take home meals or something like that, and that is also positively impacting retailers. And hence they are investing in technology, they are investing in IT systems. We also benefit from some of the consolidations that are happening, which is actually a common theme across many of the industry segments in which we are working.
Now let me pass it on to my colleague, Ashok Vemuri, who heads banking and capital markets to talk about the BFSI space and where he sees traction.
Ashok Vemuri
Thanks, Kris.
So clearly in Q2, we have had about 3.5% growth in the BFSI sector and with the addition of six new clients in the sector equally distributed between the US and Europe. We are seeing -- the good news is that decision-making is now happening, there is increased traction which is getting converted, is going beyond conversation to actual deals. The bad news is that the decision-making is still happening at the top of the house, and it is a fairly longer decision cycle time.
- To read the full transcript on Seeking Alpha, click here »
