Segment and Geographical Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment and Geographical Information

Segment and 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 the Company 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 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 periods 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 our banking and financial services, utilities and consulting operating segments have been included in a category called “All Other”. Segment information for all prior periods presented herein has been changed to conform to the current presentation. This change in segment presentation does not affect the Company's unaudited 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.

Revenues and cost of revenues for the three months ended March 31, 2017 and 2016, respectively, for each of the reportable segments, are as follows:

	Three months ended March 31, 2017
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	55,921	$	18,932	$	17,043	$	21,014	$	21,116	$	49,007	$	183,033
Cost of revenues (exclusive of depreciation and amortization)	38,329		12,186		10,224		12,898		14,444		32,038		120,119
Gross profit	$	17,592	$	6,746	$	6,819	$	8,116	$	6,672	$	16,969	$	62,914
Operating expenses													47,012
Foreign exchange gain, interest expense and other income, net													4,446
Income tax expense													3,560
Net income													$	16,788

	Three months ended March 31, 2016
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	48,299	$	16,388	$	17,559	$	19,818	$	26,006	$	38,966	$	167,036
Cost of revenues (exclusive of depreciation and amortization)	34,269		10,545		10,463		11,444		16,887		24,771		108,379
Gross profit	$	14,030	$	5,843	$	7,096	$	8,374	$	9,119	$	14,195	$	58,657
Operating expenses													42,205
Foreign exchange gain, interest expense and other income, net													3,263
Income tax expense													5,895
Net income													$	13,820

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

	Three months ended March 31,
	2017		2016
BPM and related services (1)	$	134,026	$	128,070
Analytics services	49,007		38,966
Total	$	183,033	$	167,036

(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.

	Three months ended March 31,
	2017		2016
Revenues, net
United States	$	150,281	$	134,074
Non-United States
United Kingdom	26,082		27,428
Rest of World	6,670		5,534
Total Non-United States	32,752		32,962
	$	183,033	$	167,036

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

	As of
	March 31, 2017		December 31, 2016
Property, plant and equipment, net
India	$	33,909	$	23,362
United States	11,919		10,809
Philippines	10,521		11,900
Rest of World	2,871		2,958
	$	59,220	$	49,029