Segment and Geographical Information

6 Months Ended

Jun. 30, 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 the 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 June 30, 2017 and 2016, respectively, for each of the reportable segments, are as follows:

	Three months ended June 30, 2017
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	58,255	$	18,923	$	17,835	$	21,038	$	21,447	$	51,559	$	189,057
Cost of revenues (exclusive of depreciation and amortization)	40,976		12,250		10,473		12,955		14,697		34,098		125,449
Gross profit	$	17,279	$	6,673	$	7,362	$	8,083	$	6,750	$	17,461	$	63,608
Operating expenses													47,479
Foreign exchange gain, interest expense and other income, net													5,072
Income tax expense													823
Net income													$	20,378

	Three months ended June 30, 2016
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	50,597	$	17,442	$	17,545	$	19,284	$	26,001	$	39,609	$	170,478
Cost of revenues (exclusive of depreciation and amortization)	36,451		11,008		10,801		11,929		16,293		25,544		112,026
Gross profit	$	14,146	$	6,434	$	6,744	$	7,355	$	9,708	$	14,065	$	58,452
Operating expenses													42,216
Foreign exchange gain, interest expense and other income, net													7,147
Income tax expense													7,008
Net income													$	16,375

Revenues and cost of revenues for the six months ended June 30, 2017 and 2016, respectively, for each of the reportable segments, are as follows:

	Six months ended June 30, 2017
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	114,176	$	37,855	$	34,878	$	42,052	$	42,563	$	100,566	$	372,090
Cost of revenues (exclusive of depreciation and amortization)	79,305		24,436		20,697		25,853		29,141		66,136		245,568
Gross profit	$	34,871	$	13,419	$	14,181	$	16,199	$	13,422	$	34,430	$	126,522
Operating expenses													94,491
Foreign exchange gain, interest expense and other income, net													9,518
Income tax expense													4,383
Net income													$	37,166

	Six months ended June 30, 2016
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total
Revenues, net	$	98,895	$	33,830	$	35,104	$	39,103	$	52,007	$	78,575	$	337,514
Cost of revenues (exclusive of depreciation and amortization)	70,719		21,553		21,264		23,373		33,181		50,315		220,405
Gross profit	$	28,176	$	12,277	$	13,840	$	15,730	$	18,826	$	28,260	$	117,109
Operating expenses													84,421
Foreign exchange gain, interest expense and other income, net													10,410
Income tax expense													12,903
Net income													$	30,195

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

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
BPM and related services (1)	$	137,498	$	130,869	$	271,524	$	258,939
Analytics services	51,559		39,609		100,566		78,575
Total	$	189,057	$	170,478	$	372,090	$	337,514

(1) BPM and related services include revenues of the Company's five industry-focused operating segments, one capability operating segment and consulting operating segment, which provides services related to operations management services. See reportable segment disclosure above.

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

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
Revenues, net
United States	$	153,894	$	136,151	$	304,175	$	270,225
Non-United States
United Kingdom	28,951		28,863		55,033		56,291
Rest of World	6,212		5,464		12,882		10,998
Total Non-United States	35,163		34,327		67,915		67,289
	$	189,057	$	170,478	$	372,090	$	337,514

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

	As of
	June 30, 2017		December 31, 2016
Property, plant and equipment, net
India	$	38,576	$	23,362
United States	12,890		10,809
Philippines	9,736		11,900
Rest of World	2,776		2,958
	$	63,978	$	49,029