“It may even result for us in some operating margin contraction in Q2, although we expect to continue to expand margin by 10 to 30 basis points for the full year.”

In context

“and our clients are all experiencing a tight labor market. So for us as it relates to inflation in wages, we see for our business that we will continue to have wage increases in the market for certain skills, and that varies by geographies and we expect it really to continue. So what are we doing? It's not so different from what other clients are doing. We're focused on pricing to absorb our higher labor costs. And one other thing that we pointed out, Lisa, that we were very pleased with the improved pricing that we had this quarter on our record bookings, but we have more work to do. And so as one of the things that I want to just point out that it's just going to take some time for the improved pricing to flow through our P&L, and that's going to lead to higher compensation that we see. It may even result for us in some operating margin contraction in Q2, although we expect to continue to expand margin by 10 to 30 basis points for the full year. So I mean, that's just maybe a bit of a glimpse on what it means for us, as we run our own P&L. And I'll hand it over to Julie to give some thoughts on what she's thinking and talking with our clients. Julie Sweet: Yes, great. And so, look, we're all managing different aspects, there's wage inflation. There's -- inflation, it's obviously on products. And so -- and it varies by industry in terms of the extent of the impact. And what we really see our clients doing is, because there's a lot of uncertainty about how inflation is going to develop in 2022 is being laser-focused on cost efficiencies and growth, right, because for many industries, they can't pass on the improved pricing, or they're like us, right. It takes a while to be able to do that. And so it is helping as well, drive some o”