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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 UOaQw7KwOyhfR+j5zgE998k+NT2C6F6K+TzNSEo+OvST7P8HnevQwmlpQYfLXaBG
 1P1o5PFMJppfNjYTx9z21g==

<SEC-DOCUMENT>0001181431-05-059226.txt : 20051102
<SEC-HEADER>0001181431-05-059226.hdr.sgml : 20051102
<ACCEPTANCE-DATETIME>20051102184656
ACCESSION NUMBER:		0001181431-05-059226
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20051101
FILED AS OF DATE:		20051102
DATE AS OF CHANGE:		20051102

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TRANSCEND SERVICES INC
		CENTRAL INDEX KEY:			0000858452
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				330378756
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		945 EAST PACES FERRY ROAD
		STREET 2:		SUITE 1475
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30326
		BUSINESS PHONE:		4043648000

	MAIL ADDRESS:	
		STREET 1:		945 EAST PACES FERRY ROAD
		STREET 2:		SUITE 1475
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30326

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TRICARE INC
		DATE OF NAME CHANGE:	19920703

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			CORNELL LANCE
		CENTRAL INDEX KEY:			0001076476

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18217
		FILM NUMBER:		051174551

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		7702219990

	MAIL ADDRESS:	
		STREET 1:		1765 THE EXCHANGE
		STREET 2:		SUITE 450
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30339
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>rrd96101.xml
<DESCRIPTION>FORM 3 11/02/05 LANCE CORNELL
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2005-11-01</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000858452</issuerCik>
        <issuerName>TRANSCEND SERVICES INC</issuerName>
        <issuerTradingSymbol>TRCR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001076476</rptOwnerCik>
            <rptOwnerName>CORNELL LANCE</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>945 EAST PACES FERRY ROAD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 1475</rptOwnerStreet2>
            <rptOwnerCity>ATLANTA</rptOwnerCity>
            <rptOwnerState>GA</rptOwnerState>
            <rptOwnerZipCode>30326</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chief Financial Officer</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>Option to purchase Common Stock, par value $0.05</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>2.10</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2005-12-31</value>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2015-11-01</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock, par value $0.05</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>50000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Total number of options granted on 11/1/05, exercisable in amounts of 16,667 shares on 12/31/2005; 16,667 shares on 12/31/2006; and 16,666 shares on 12/31/2007</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Lance B. Cornell</signatureName>
        <signatureDate>2005-11-02</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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