Segment & Geographical Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment and Geographical Information

Segment & Geographical Information

The Company operates in the BPM industry and is a provider of operations management and analytics services. The Company has eight operating segments which are strategic business units that align its products and services with how it manages its business, approaches its key markets and interacts with its clients. Six of those operating segments provide BPM or “operations management” services, which it organizes into industry-focused operating segments (Insurance, Healthcare, Travel, Transportation and Logistics, Banking and Financial Services, and Utilities) and one “capability” operating segment (Finance and Accounting) that provides services to clients in our industry-focused segments as well as clients across other industries. In each of these six operating segments, the Company provides operations management services, which typically involve transfer to the Company of select business operations of a client, after which it administers and manages those operations for its client on an ongoing basis. The remaining two operating segments are Consulting, which provides industry-specific transformational services related to operations management services, and the Analytics operating segment, which provides services that focus on driving improved business outcomes for clients by generating data-driven insights across all parts of their business.

In prior years the Company presented two reportable segments: Operations Management (which included its insurance, healthcare, travel, transportation and logistics, finance and accounting, banking and financial services, utilities and consulting operating segments) and Analytics. Effective for the quarter and year ended December 31, 2016, the Company presents information for the following reportable segments:

• Insurance

• Healthcare

• Travel, Transportation and Logistics (“TT&L”)

• Finance and Accounting (“F&A”), and

• Analytics

The remaining operating segments which includes banking and financial services, utilities and consulting operating segments have been included in a category called “All Other”. Segment information for all prior years presented herein has been changed to conform to the current presentation. This change in segment presentation does not affect its consolidated statements of income and comprehensive income, balance sheets or statements of cash flows.

The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments.

The Company does not allocate and therefore the CODM does not evaluate other operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented.

The July 2016 acquisition of Liss Systems Limited (“Liss”) is included in the Insurance reportable segment. Similarly, the September 2016 acquisition of IQR Consulting Inc. (“IQR”) along with the October 2016 acquisition of Datasource Consulting, LLC (“Datasource”) are included in the Analytics reportable segment.

Revenues and cost of revenues for each of the years ended December 31, 2016, 2015 and 2014, for each of the reportable segments, are as follows:

	Year ended December 31, 2016
	Insurance		Healthcare		TT&L		F&A		Analytics		All Other		Total
Revenues, net	$	206,327	$	68,656	$	69,366	$	79,416	$	165,734	$	96,489	$	685,988
Cost of revenues (exclusive of depreciation and amortization)	146,203		44,098		41,962		48,302		106,341		61,050		447,956
Gross profit	$	60,124	$	24,558	$	27,404	$	31,114	$	59,393	$	35,439	$	238,032
Operating expenses													173,810
Foreign exchange gain, interest expense and other income, net													19,662
Income tax expense													22,151
Net income													$	61,733

	Year ended December 31, 2015
	Insurance		Healthcare		TT&L		F&A		Analytics		All Other		Total
Revenues, net	$	199,878	$	55,209	$	62,264	$	78,504	$	122,151	$	110,486	$	628,492
Cost of revenues (exclusive of depreciation and amortization)	134,196		37,224		37,506		46,846		78,838		68,307		402,917
Gross profit	$	65,682	$	17,985	$	24,758	$	31,658	$	43,313	$	42,179	$	225,575
Operating expenses													158,232
Foreign exchange gain, interest expense and other income, net													8,433
Income tax expense													24,211
Net income													$	51,565

	Year ended December 31, 2014
	Insurance		Healthcare		TT&L		F&A		Analytics		All Other		Total
Revenues, net	$	151,308	$	42,848	$	47,492	$	92,013	$	65,615	$	100,002	$	499,278
Cost of revenues (exclusive of depreciation and amortization)	107,026		29,598		29,945		56,770		46,042		63,154		332,535
Gross profit	$	44,282	$	13,250	$	17,547	$	35,243	$	19,573	$	36,848	$	166,743
Operating expenses													132,703
Foreign exchange gain, interest expense and other income, net													3,598
Income tax expense													5,193
Net income													$	32,445

Net revenues of the Company by service type, were as follows:

	Year ended December 31,
	2016		2015		2014
BPM and related services (1)	$	520,254	$	506,341	$	433,663
Analytics services	165,734		122,151		65,615
Total	$	685,988	$	628,492	$	499,278

(1) BPM and related services include revenues of all the operating segments other than Analytics. See reportable segment disclosure above.

The Company attributes the revenues to regions based upon the location of its customers.

	Year ended December 31,
	2016		2015		2014
Revenues, net
United States	$	554,945	$	496,418	$	368,870
Non-United States
United Kingdom	109,905		108,868		101,789
Rest of World	21,138		23,206		28,619
Total Non-United States	131,043		132,074		130,408
	$	685,988	$	628,492	$	499,278

Property, plant and equipment by geographic area, were as follows:

	December 31, 2016		December 31, 2015
Property, plant and equipment, net
India	$	23,362	$	23,415
United States	10,809		10,680
Philippines	11,900		11,285
Rest of World	2,958		2,611
	$	49,029	$	47,991

For a discussion of risks attendant to foreign operations, see “Item 1A. Risk Factors - Risks Related to the International Nature of Our Business”.