You have got to €“ oftentimes, we will have multiple systems. You will have to test things. You can’t go as fast. And so the banks are kind of reaching their limits in terms of what they can do without touching their core. So, we expect the sort of addressing the core to be a really important driver. We are seeing, in asset management, more and more views €“ more and more companies in asset management, really digitizing. They had been kind of slower behind the banks. And then insurance, we are working with leading insurers across the world who not only are kind of trying to catch up because banking was ahead of insurance, but finding sort of new and exciting opportunities on how to use data, in particular, to grow their business, how to transform their experience and claims.
So, financial services which covers banking, capital markets and insurance, we continue to see as a vibrant area. Where things are slowing down a bit in the U.S. where we have been a big player is in integration. We will see that might pick up again. Let’s just see how all of this shakes out. But that has slowed down for a bit. Hopefully, that gives you some color.
David Togut: It does. Thanks so much.
Operator: Our next question comes from the line of Jason Kupferberg with Bank of America. Please go ahead.
Jason Kupferberg: Good morning. Thanks guys. I just wanted to ask about Q3 bookings. If you can discuss consulting versus managed services, just expectations there? I mean I think the year-over-year comparison for consulting at least gets a bit easier.
KC McClure: Yes. Thanks Jason. I am not going to comment specifically on kind of individual breakout of the bookings. But maybe I will just reiterate what I mentioned to Tien-Tsin. So, we had record bookings this quarter. We do see that next quarter. We will have lighter bookings than what we had this quarter in terms of the record bookings. Overall, what you can see, Jason, you know us well, is that the mix right now is much more favored halfway through the year to managed services, all the reasons that Julie talked about. We were really pleased with consulting this quarter that did €“ we thought it was going to be strong, and it came in even stronger. And so that, we are very encouraged by that, and we do have a strong pipeline, and we continue to see solid bookings for Q3.
Jason Kupferberg: Okay. Understood. And then just on the cost side, what’s the estimated savings from the cost takeout program? And I know the charges will aggregate to $1.5 billion, but I just wanted to understand kind of what the fully annualized run rate of savings is? And are you essentially reinvesting the savings? I mean I know at least for this year, we are not changing the underlying margin guidance. So, just wanted to get a picture of how much of this is being reinvested, or are you essentially just offsetting some other headwinds around wage inflation, etcetera?
KC McClure: Thanks for the question. Let me just first start with FY €˜23. So, the actions that we are taking are not about FY €˜23. They are about FY €˜24 and beyond. So, in terms of what we will do with those savings, it really is going to depend, Jason, on how the market develops, the growth opportunities that we have next year. And as Julie said, the key part of what we are really focused on is just going to give us more room to continue to execute our enduring shareholder value proposition, what she mentioned. And I know you know that.
Jason Kupferberg: Yes. Alright. So, just
Julie Sweet: Keep your model €“ to be clear, keep your model 10 basis point to 30 basis point adjusted margin expansion. We are going to invest in our business and we are going to grow faster than the market.
Jason Kupferberg: We love the consistency. Thank you.
