Tien-Tsin Huang: Okay. Just to just add to the Bryan’s last question here, just as on the visibility side, especially in consulting relative to Managed Services. And given, Julie, really what you just said there, any change in your thinking on mix of growth across Consulting versus Managed Services, asking for both, I guess, bookings as well as revenue here?
KC McClure: Yes. I’ll take — Tien-Tsin, I’ll take the — in terms of the outlook for how we see growth going by our various — our two types of work. So for the full year, at the top end of our range, we see Consulting high single digits, and we see Managed Services continue to grow double digits. And as it relates to outlook and bookings, what we’re seeing is that we do have a strong pipeline and we actually see continued strong pricing in that pipeline. And we do see that we will have a solid bookings quarter in Q2, and that includes Consulting. It’s likely — it will likely be lower though than the record bookings in Consulting that we had last quarter, and we expect to continue to see really strong bookings in Managed Services.
Julie Sweet: Yes, and we’re going to continue to focus our Strategy & Consulting expertise on these platform and cloud-led transformation.
Tien-Tsin Huang: Got you. Okay. Perfect. Then a quick follow, if you don’t mind. I heard the pricing favorable utilization looks like it’s steady attrition nicely, better or lower, 13%, I think I saw on the sheet there. So just same question on visibility with respect to cost and margin, if you’re flexing or changing anything here, I know the range overall is the same, but it feels like you’ve got a good line of sight in terms of your costs. I just wanted to confirm that.
KC McClure: Yes. Sure. So I’ll talk a little bit about on the attrition point, and then we can get into kind of what we’re seeing overall in our cost and our visibility in that regard. So attrition was down to 13%, and I think all of you know, but there’s a structural pattern of attrition that typically comes down from Q4 to Q1. This year came down at a tick more, and we’re really pleased with that. And that means we have to hire fewer replacement people, it means less recruiting costs, and you saw that in our improvement in G&A this quarter, and it’s less ramp up for new hires. And so Tien-Tsin, in terms of visibility of what we see, I mean, we expect to continue to hire for the specific skills that we need. With upskilling, we may not need to hire as many people as we go throughout the year.
But we have a very deep — and we have a very deep competency in our supply and demand balancing and we’re always focused on. And in terms of profit, let me talk a little bit about what we’re seeing in operating margin. So operating margin, we’re pleased with the 20 basis point expansion that we have in Q1 and really pleased to be confirming our 10 to 30 basis points expansion for the year. And as I said last quarter, we’d be pleased to land anywhere within the 10 to 30 basis point range. But let me give you a little bit more color about what we’re seeing in Q2 and then just the visibility, as you ask, about the rest of the year. So I mentioned last quarter, we may see more variability in the quarters as we get through fiscal ’23. And as I mentioned in the script, that is exactly playing out.
Now, there’s a few reasons for that. So in Q2 overall, the first thing, and I think all of you know, it’s a structurally lower profit quarter just to begin with, in part because of the holidays. As well as for us, it’s when most of our compensation increases kick in. So while we’ve planned for those comp increases, it does take some time to work through our P&L. And then in addition, in Q2, the impact of the changes of smaller deal volumes that Julie described, it’s going to impact Q2 revenue. And that — when you take everything into consideration, that’s why we expect the Q2 operating margin decline in Q2 and potentially for the first half of the year. And so with that, then the math shows that most of our margin expansion will be in the back half of the year.
And how — why is it that we see that? We have a strong pipeline, as I mentioned. We have continued strong pricing improvements in our pipeline. And as always, we have some simple, but important levers on how we run our business. We are going to in addition to pricing, focused on cost efficiencies and delivery efficiencies within how we run our contracts. We’re going to manage supply and demand, as we always do, with even more rigor and discipline. And we’re going to continue to work on digitizing and cost-effective running the operations of Accenture.
Operator: Your next question comes from the line of Lisa Ellis from SVB MoffettNathanson. Please go ahead.
