Tien-Tsin Huang: Yes. No, it should bode well for Accenture. Thank you.
Julie Sweet: Thanks.
Operator: We’ll go next to the line of James Faucette with Morgan Stanley.
James Faucette: Great. Thank you very much. Wanted to, kind of, follow-up on a couple of questions there. One of the other areas that had seen some strength and seems like it’s weakened a little bit has been managed services. Can you talk through, kind of, what’s happening there and one of the things that we’re also seeing is, hear is — or hearing is that there’s some variation in demand right now, especially geographically, maybe with Europe being a little weaker, but other markets being a little stronger. Can you just give color on managed services and what’s happening geographically?
KC McClure: Yes. Thanks, James, for the question. I will — maybe I’ll start with, just kind of giving you a little bit of color on what we’re seeing on managed services as it relates to guidance and just maybe broader guidance kind of overall. So I’ll just start with our full-year, right? So we started with our full-year guidance, which is 2% to 5% growth for the year. I think the key part, as Julie mentioned, is that we expect that we’re going to build as we go throughout the year. And you can see that in our range for Q1, which starts negative 2 and has 2 at the top end of our range. And then if you look at Q1, for the most part, what we are reflecting in our Q1 guidance is really more the same across the various dimensions of our business that we saw in Q4.
And — but we have a backdrop of a tougher compare in the first quarter of FY ’24, that’s our toughest compare for the full-year. And then if you look at the full year, maybe three things to add. From a macro, we’re not assuming that there’s an improvement in the discretionary spend environment or the macro as we look at the year. The second on your — to get to the type of work question, we’re going to build as we go throughout the year and we see consulting for the full-year being at low-single-digit. And managed services is going to be a healthy mid to high-single-digit growth for the full-year. And then, depending on how the revenue builds, the last point would be on operating margin. We do expect to see more variability in the quarters as we go through fiscal ‘24 on our way to 10 basis points to 30 basis points of expansion for the year.
So hopefully that gave you a little bit of color. Julie, if you want to talk a little bit more about specifics in managed services?
Julie Sweet: And what I would say on managed services, managed services continue to be really important for our clients, because it’s both a cost play, but also a faster digitization play. But it will play out a little bit. So, for example, at Accenture, right, we’ve got trust and safety and other managed services in the CMT. And so that’s going to affect some of our results depending on the quarter and the compare and how things kind of roll out. So that’s why what we’re thinking about next year will be somewhere in the mid to high-single-digits, but we don’t see a fundamental issue around managed services. In fact, we think they are a really strategic priority for many of our clients, but it will play out a little bit differently based on industries. We see less of it based on sort of market per se because clients really need the managed services.
James Faucette: Got it. And then just as a quick follow-up, can you talk a little bit about your inorganic strategy, just what contribution has been, and particularly in light of the increased capital return program for ‘24, if we should anticipate that that will have any impact on what you guys historically have done from an inorganic contribution? Thanks.
KC McClure: Sure. In terms of inorganic contribution, for ‘23, it was about 2% was the inorganic contribution and for ‘24, James, we’re considering another about 2% in ‘24.
