Revenues, net

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenues, net

Revenues, net

Refer to Note 3 - Segment and Geographical Information to the consolidated financial statements for revenues disaggregated by reportable segments and geography.

Contract balances

The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers:

	As of
	December 31, 2021		December 31, 2020
Accounts receivable, net	$	194,232	$	147,635
Contract assets	$	2,524	$	4,437
Contract liabilities
Deferred revenue (consideration received in advance)	$	18,247	$	30,450
Consideration received for process transition activities	$	2,203	$	2,774

Accounts receivable includes $93,336 and $63,995 as of December 31, 2021 and 2020, respectively, representing unbilled receivables. The Company has accrued the unbilled receivables for work performed in accordance with the terms of contracts with customers and considers no significant performance risk associated with its unbilled receivables.

Contract assets represent upfront payments such as deal signing discounts or deal signing bonuses made to customers. These costs are amortized over the expected period of the benefit and are recorded as an adjustment to transaction price and reduced from revenues. The Company’s assessment did not indicate any impairment losses on its contract assets for the periods presented.

Contract liabilities represent that portion of deferred revenue for which payments have been received in advance from customers. The Company also defers revenues attributable to certain process transition activities for which costs have been capitalized by the Company as contract fulfillment costs. Consideration received from customers, if any, relating to such transition activities are classified under contract liabilities and are included within “Deferred revenues” and “Other non-current liabilities” in the consolidated balance sheets. The revenues are recognized as (or when) the performance obligation is fulfilled under the contract with customer.

Revenue recognized during the years ended December 31, 2021 and 2020, which was included in the contract liabilities balance at the beginning of the respective periods:

	Year ended December 31,
	2021		2020
Deferred revenue (consideration received in advance)	$	30,089	$	10,949
Consideration received for process transition activities	$	1,886	$	1,424

Contract acquisition and fulfillment costs

The following table provides details of the Company’s contract acquisition and fulfillment costs:

	Contract Acquisition Costs				Contract Fulfillment Costs
	Year ended December 31,				Year ended December 31,
	2021		2020		2021		2020
Opening Balance	$	1,027	$	1,307	$	5,631	$	7,255
Additions	277		310		3,742		779
Amortization	(793)		(590)		(3,578)		(2,403)
Closing Balance	$	511	$	1,027	$	5,795	$	5,631

There was no impairment for contract acquisition and contract fulfillment costs as of December 31, 2021 and 2020. The capitalized costs are amortized over the expected period of benefit of the contract.

Allowance for expected credit losses

On January 1, 2020, the Company adopted ASC Topic 326, Financial Instruments-Credit Losses. Accounts receivable and contract assets are in the scope for which assessment is made. The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its significant customers to estimate the probability of default in the future and estimates relating to the possible effects resulting from COVID-19. There was not a material impact on the provision for credit losses upon adoption of the Topic 326 guidance.

The duration and severity of COVID-19 and continued market volatility is highly uncertain and, as such, the impact on expected losses is subject to significant judgment, including but not limited to changes in customers’ credit rating, and may cause variability in the Company’s allowance for credit losses in future periods.

	As of
	December 31, 2021		December 31, 2020
Accounts receivable, including unbilled receivables	$	194,805	$	148,824
Less: Allowance for expected credit loss	(573)		(1,189)
Accounts receivable, net	$	194,232	$	147,635

The movement in “Allowance for expected credit losses” on customer balances for the years ended December 31, 2021 and 2020 was as follows:

	Year ended December 31,
	2021		2020
Balance at the beginning of the year	$	1,189	$	1,163
Additions / (reductions) during the period	(496)		300
Reductions due to write-off of Accounts Receivables	(129)		(269)
Translation adjustment	9		(5)
Balance at the end of the year	$	573	$	1,189