Resources Connection (RGP) Small-Cap Growth Virtual Investor Conference summary

Business model and market positioning

• Operates as a global professional services firm deploying experienced consultants in flexible, project-based roles, serving Fortune 100 and similar clients worldwide.

• Differentiates from traditional Big Four models by offering seamless global teams and a highly variable cost structure, with 70% of costs tied to consultant utilization.

• Recognized for management consulting excellence and as a top midsize employer, supporting strong talent attraction and retention.

• Focuses on operational efficiency and technology transformation, aiming to automate processes and enhance client and consultant experiences.

• Maintains robust free cash flow and an industry-leading dividend yield, with a consistent record of shareholder returns.

Strategic initiatives and growth drivers

• Investing in digital transformation capabilities, expanding services to CTOs, CDOs, and CMOs, and supporting clients' cloud migration and ERP transitions.

• Evolving reporting structure in fiscal 2025 to provide greater transparency by segmenting on-demand talent, consulting, and outsourced services.

• Pursuing M&A to build digital and management consulting capabilities, especially in financial services and Southeast Asia.

• Enhancing pricing strategy, offering rates 30–40% lower than Big Four competitors while emphasizing experienced, industry-trained consultants.

• Cross-selling digital design and functional expertise, aiming to deliver integrated solutions for client employee and customer experience.

Market trends and client demand

• Clients increasingly favor blended workforce strategies, scaling down full-time staff and insourcing specialized talent for projects.

• Project-based work and the "project economy" are growing, with recurring enterprise projects driving stickiness in large client relationships.

• Digital transformation, data readiness, and AI adoption are top enterprise spending priorities, with significant consulting opportunities in data cleansing, process redesign, and change management.

• Labor shortages and demographic trends reinforce the need for technology and AI to supplement human capital, not displace it.

• Cautious optimism for market recovery, with improving sales pipelines and positive hiring outlooks among clients.