KC McClure: Yes. And maybe I’ll take the layering in question on the larger deals and talk a little bit about how that’s going to work for the back-half of the year as it relates to guidance. So we have the larger deals that were terrific in our second quarter and our whole first-half of the year. But you’re right, they do layer-in slower than the smaller deals and we see pressure in the volume of our smaller deals. And that’s why we have the 1% to 3% guidance for the full-year. Now we do feel-good about delivering to this guidance and what that means for H2, and that really is for a few reasons that we’ve talked about before, but let me just kind of reiterate. The first is that, our competitive advantage is that we have the ability to invest.
You saw us do that in H1 and Julie talked about that, with investing more in acquisitions this year, in the first half than we did all of last year. And that’s really important because that drives inorganic growth. But again, we do that really to fuel organic growth, but we see that coming online in the back half of the year. The second thing is that, we have done these larger transformation deals, but also the ones from the previous years. And we see that continuing to benefit us as it relates to revenue as they will layer on in the back half of the year. And that really just speaks to the resilience of our strategy, both in terms of being what Julie has talked about, being where our clients need us and our inorganic strategy to continue to benefit to pivot to scale in new areas of growth.
And so, that’s how that all comes together in terms of revenue conversion from those larger deals and when they come online, James. And maybe I’ll just also add, what that means from a type of work for the entire year. What we now see from the context of the 1% to 3% is, our consulting type of work will be about flattish. And we see our managed services growing to about mid-single digit growth for the year.
James Faucette: Great. Thanks for the color to both of you. And then quickly KC, just in terms of that investment. How do we think about like how that affects the margin expansion. I mean typically one, you’re doing acquisitions, there a little bit of time before you can start to get people to the same type of trajectory as Accenture on margin expansion, but just trying to get a sense of how we should think about that impacting as well?
KC McClure: Yes. Thanks for that. Well, first of all, I’m just — I just want to put out that I’m really pleased with our profitability in the first half of the year and the outlook for profitability for the full year. Our margin is flat, but we have EPS growth for the first half of the year, profit growth of 5%. And that really just points to the rigor and discipline that we continue to operate our business in. But really importantly, as Julie talked about, all the investments we’re making in our business and our people continue. So as you look at the back-half of the year, we now see the 10 basis points expansion is where we see it. Again, very important, continue to have high levels of investment in our people and our business.
And EPS, we see for the whole year at about 3% to 5%. One thing I will point out just to help all of you. We did benefit from the first-half of the year in our EPS with higher non-operating income, which makes lot of sense on interest income, on our higher cash balance. In the first-half, you see our cash went from 9% to 5%. So great cash, we can — no concerns will continue with our capital allocation strategy, but just as you model in the back half of the year, you’ll see that not surprisingly with lower cash flow will have lower interest income. So just as you’re working through your EPS for the first-half and second-half, that’s something that you might want to consider.
James Faucette: Super helpful. Thank you.
Operator: Your next question comes from the line of Bryan Bergin from TD Cowen. Please go ahead.
Bryan Bergin: Hi, good morning. Thank you. So Julie, I’m curious just based on your conversations with leaders, what might be the catalyst here to have clients release spending programs and kind of lean back into shorter cycle work. As economic data generally holds up, are we just in a slower for longer backdrop or just kind of hoping that you can share some color on how you’re thinking about a recovery internally and what enterprises really are watching and waiting for?
Julie Sweet: Look, I think there’s going to be a couple dynamics, right? Remember they just set budgets. So we’re kind of assuming there are the budgets for their calendar year and we see in general, most of this constraint is tied to the uncertain macro. So those are the kind of things. They set budgets and they’ve got uncertain macro.
KC McClure: Yes. And just a reminder that everything that we’re talking about in terms of giving guidance. I know all of you know this, but just as a reminder, our fiscal year-ends on August. Right? So there — it’s a little bit over halfway through the calendar year.
Bryan Bergin: Okay, okay, that makes sense. And then as it relates to GenAI, just kind of a revolutionary versus evolutionary kind of questioning here. Just given how much work needs to be done for most clients to really do anything with large language models, how do we interpret that as a driver of your growth? So meaning, does GenAI enabled you to potentially drive a higher-level of growth when spending does become more normal or should we think about this more as a next tech wave that enable comparable levels of normalized growth just because of how long this might all take for large enterprises to get there?
