KC McClure: Yeah. So, thanks for that, Darrin. So, I’ll talk about — in terms of our people, in terms of number of people we have, first, I’ll start with, as you know, managing supply-demand is really our core competency. And you can see that in our ability to manage our utilization at high levels. And I’ll just point out that for the last 13 quarters, our utilization has been 91% or higher. And so, we hire for the skills that we need and we hire where we need them. And what you’re pointing out is that we had about a 1% increase year-over-year in our headcount, as well as about a 1% sequentially. And that’s in-line with what we — how we see revenue going for the rest of the year. So there’s really no change there. And as it relates to the revenue per head and the non-linearity, I mean, we do have automation.
We do have value-based projects. So, while there still is a, obviously, connection to the amount of people that we have, we have been able to break that. There are parts where we are able to not fully disconnect, but not completely rely on headcount to drive revenue.
Julie Sweet: And Darrin, in terms of just demand, right, so I’d kind of anchor to, first of all, we’re seeing demand for transformational deals. So, in an environment like this, the thing that I look at most is, are we continuing to have our clients do more than $100 million of bookings, right, which is in our industry, we are a real standout here. And what does that mean? That means that we continue to be at the heart of where clients are spending to do material transformations. That’s where you want to be so that you’re positioned when inevitably discretionary spending, the pace goes back up, the macro changes, you want to be at the heart. So, at times like this, that’s what I’m really looking at. And that’s where you’re seeing — I will tell you, this is one of the most exciting times in the market.
Like you just take what we are announcing today on McDonald’s. I talked about in the script, right? Incredible company, technology driven. We’ve been their long-time partner. Just expanded the partnership to take it all the way to the edge and reinvent their restaurants and their crew experience. This is going to be really cutting work at the edge, because that’s where we’re starting to see the leaders in cloud go, and we’re leading there. Those are the kinds of things that then you see how they’re going to expand. There’s so much opportunity still in these big areas of cloud, of data, and AI. But cloud itself, yes, we’ve done a lot of migration. There’s still more migration to go, but even more importantly, you’ve got to take it all the way to the edge.
So, from a demand perspective, we continue to see the transformations that move the needle for cost and growth, and that’s what we’re expecting. From a mix perspective, we’re not seeing a big change between managed services and consulting. The mix we’re seeing is that in this environment, you’re seeing less of the smaller deals, which convert to revenue faster, and more on the larger deals. And that’s been around for a while, and that’s what you’re going to continue to see. And we are laser-focused on making sure we are winning in the reinvention, the transformation, and at the same time massively pivoting to GenAI, right? And our clients have so much work to do to be able to use GenAI, but you can see the momentum in our business, right, from that change from $300 million of all of last year to $450 million in a quarter.
And I’ll just remind you, that’s not the pull-through. That’s not data. We are very pure because we really want to be sharing with all of you where is GenAI in the market. So, we’re pretty excited about where we are today and what’s ahead.
Darrin Peller: That’s really helpful. Look, you guys have obviously managed well through what was a softer discretionary demand environment. So, I guess, my question would be, if we thought about what a normalized run rate of revenues on really S&C would be, if we just said today’s a normal, no longer softer discretionary environment, where do you think the difference is? I mean, I know it’s probably hard to give an exact or precise estimate, but how much upside is there when we get that back?
Julie Sweet: Well, we have a good — a really strong strategy in consulting business. And so, we’re very positive about that business growing. But beyond that, I think, Darrin, we’re not going to start to predict growth rates. But in the meantime, it is a huge differentiator. Nobody has that combination that we have, and that is what is driving the resilience of our business to be at the core of our clients’ agenda. Thanks so much, Darrin.
Darrin Peller: Great. Thanks, guys.
Katie O’Conor: Operator, we have time for one more question, and then Julie will wrap up the call.
Operator: Okay. That question comes from the line of James Faucette from Morgan Stanley. Please go ahead.
James Faucette: Great, thank you so much. I want to just ask a couple of follow-up questions to those that have already been asked. First on the inorganic contribution, appreciate that it’s going to be better than 2%. Can you talk a little bit about whether that increased activity is — or how you would balance that increased activity between just better valuations and more opportunities from a purely financial perspective in the market versus it sounds like some of the acquisitions you’re doing, you’re just trying to push into new strategic areas, and just wondering how you’re balancing those strategic imperatives versus perhaps a little better valuations?
