Computer Task Group, Incorporated (
Noble Financial Equity Conference
January 17, 2012 12:00 ET
Unidentified Company Speaker
77% of our revenue now comes from those four fast growing industries. Towards the end of 2004, we are looking at our strategy and we realized that we grow quicker and be much more profitable. We focused in primarily in IT solutions for healthcare. So since the beginning of 2005, almost all of our discretionary investment money has gone into our healthcare vertical. And as I go through the presentation, I’ll explain what we invest in.
The pie chart on the right side of this page shows the offerings at the highest level. The highest level will really only have two offerings, it’s IT staffing and IT solutions. In a staffing engagement, we’ll provide a technical employee usually a program or an analyst. In a solutions engagement, we will take on responsibility for something inside of our clients’ IT environment, almost all of our healthcare businesses, IT solutions, because we’ve been focused on it. The solutions side of our business is growing much faster than our staffing side.
In the third quarter of the year, for instance, our staffing business grew by 11%. The solutions side of the business grew by 36%. Obviously, that’s good for us, because the two sides of the business have very different operating margins. The aggregate operating margin in the staffing side of the business is usually about 3%. It’s 10% in the solutions side of the business. We’ll talk more about that as we go through the presentation as well.