Concentrix Accelerates into the Future: Harnessing AI, Innovation, and Long-Term Value Creation
Clients are under pressure to show both innovation and cost control. Every client has brought forward AI on their agenda as a way to optimize processes, show their board's relevance, and reduce costs.
Concentrix President and CEO Chris Caldwell stated during the company's third quarter 2024 earnings call that the pace of change is accelerating, driving more technology adoption, movement in delivery location, and asks for investment by clients for their transformations that are now taking priority. Transitions that might have taken several quarters are now taking place in a significantly shorter time frame.
This shift validates Concentrix's strategy and model to capitalize on the moment. The company's investments in its own technology and that of its partners, combined with its global scale and domain expertise, make it an attractive partner for clients looking to lead them through their AI journey to drive innovation, reduce costs, and embrace new economic models.
Caldwell emphasized that Concentrix needs to focus on winning the right business and in some cases, walking away from transactional, price-led commodity business where there is no desire or ability from the client to automate. This type of business now represents less than 7% of the company's overall business, a marked decline from the 13% only two years ago.
Caldwell provided examples of how this is playing out currently, including winning new logos from competitors. For instance, Concentrix won the entire business of an airline that had been with their existing partner for decades. The company's technology leadership allows it to drive automation to improve performance and reduce cost for clients while enhancing the customer experience.
Concentrix has also driven change in its existing business. One example is from a large infrastructure company that Concentrix has serviced for five years. The company has made significant investments in its own technology and that of its partners, which has enabled it to drive automation to improve performance and reduce cost for clients while enhancing the customer experience.
Concentrix's focus on innovation and long-term value creation is expected to continue driving growth and success for the company. As Caldwell stated, "We are proactively disrupting our own business with confidence." This approach has led to a significant decline in transactional, price-led commodity business and an increase in higher-value work that utilizes Concentrix's technology leadership and global scale.