SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2012

SEGMENT INFORMATION [ABSTRACT]

SEGMENT INFORMATION

(3)       SEGMENT INFORMATION

Effective January 1, 2012, the Company completed certain changes focused on streamlining the organization to more closely align the Company's reporting structure with its products and services and toincrease management accountability. Beginning in the first quarter of 2012, the Company will now report the following four segments:

• the Customer Management Services segment includes the customer experience delivery solutions which integrate innovative technology with highly-trained customer experience professionals to optimize the customer experience across all channels and all stages of the customer lifecycle from an onshore, offshore or work-from-home environment;
• the Customer Growth Services segment includes the technology-enabled sales and marketing business;
• the Customer Technology Services segment includes the hosted and managed technology offerings, including certain acquired assets of eLoyalty; and
• the Customer Strategy Services segment includes the customer experience strategy and data analytics offerings.

The Company revised previously reported segment information to conform to its new segments in effect as of January 1, 2012.

All intercompany transactions between the reported segments for the periods presented have been eliminated.

The following tables present certain financial data by segment (amounts in thousands):

Three Months Ended September 30, 2012
			Gross Revenue		Intersegment Sales		Net Revenue		Depreciation & Amortization		Income (Loss) from Operations
Customer Management Services		$	224,041	$	-	$	224,041	$	5,667	$	47,181
Customer Growth Services			28,200		-		28,200		862		5,818
Customer Technology Services			25,219		(2,876)		22,343		774		3,272
Customer Strategy Services			11,913		(229)		11,684		351		824
	Total segments		289,373		(3,105)		286,268		7,654		57,095
Corporate			-		-		-		3,041		(29,734)
	Total	$	289,373	$	(3,105)	$	286,268	$	10,695	$	27,361
Three Months Ended September 30, 2011
			Gross Revenue		Intersegment Sales		Net Revenue		Depreciation & Amortization		Income (Loss) from Operations
Customer Management Services		$	248,690	$	-	$	248,690	$	7,043	$	43,385
Customer Growth Services			25,793		-		25,793		695		5,020
Customer Technology Services			23,401		(525)		22,876		1,130		4,289
Customer Strategy Services			6,876		-		6,876		176		(322)
	Total segments		304,760		(525)		304,235		9,044		52,372
Corporate			-		-		-		2,763		(25,800)
	Total	$	304,760	$	(525)	$	304,235	$	11,807	$	26,572
Nine Months Ended September 30, 2012
			Gross Revenue		Intersegment Sales		Net Revenue		Depreciation & Amortization		Income (Loss) from Operations
Customer Management Services		$	688,317	$	-	$	688,317	$	17,697	$	120,797
Customer Growth Services			75,373		-		75,373		2,059		11,108
Customer Technology Services			76,571		(3,719)		72,852		2,239		11,734
Customer Strategy Services			32,623		(1,445)		31,178		1,040		1,671
	Total segments		872,884		(5,164)		867,720		23,035		145,310
Corporate			-		-		-		8,005		(92,753)
	Total	$	872,884	$	(5,164)	$	867,720	$	31,040	$	52,557
Nine Months Ended September 30, 2011
			Gross Revenue		Intersegment Sales		Net Revenue		Depreciation & Amortization		Income (Loss) from Operations
Customer Management Services		$	742,969	$	-	$	742,969	$	22,779	$	141,223
Customer Growth Services			71,419		-		71,419		2,247		12,596
Customer Technology Services			39,718		(525)		39,193		1,647		10,158
Customer Strategy Services			25,269		-		25,269		783		1,450
	Total segments		879,375		(525)		878,850		27,456		165,427
Corporate			-		-		-		7,372		(92,736)
	Total	$	879,375	$	(525)	$	878,850	$	34,828	$	72,691

			Three Months Ended September 30,				Nine Months Ended September 30,
			2012		2011		2012		2011
Capital Expenditures
	Customer Management Services		$	4,483	$	4,236	$	17,465	$	11,315
	Customer Growth Services			1,940		978		2,833		1,178
	Customer Technology Services			842		1,027		1,543		1,142
	Customer Strategy Services			113		88		197		226
	Corporate			8,403		2,475		11,221		7,305
		Total	$	15,781	$	8,804	$	33,259	$	21,166
			September 30, 2012		December 31, 2011
Total Assets
	Customer Management Services		$	497,746	$	479,818
	Customer Growth Services			49,700		50,950
	Customer Technology Services			89,212		70,745
	Customer Strategy Services			49,840		42,882
	Corporate			119,106		102,583
		Total	$	805,604	$	746,978
			September 30, 2012		December 31, 2011
Goodwill
	Customer Management Services		$	20,325	$	20,594
	Customer Growth Services			24,439		24,439
	Customer Technology Services			19,648		18,516
	Customer Strategy Services			7,742		7,295
		Total	$	72,154	$	70,844

The following table presents revenue based upon the geographic location where the services are provided (amounts in thousands):

			Three Months Ended September 30,				Nine Months Ended September 30,
			2012		2011		2012		2011
Revenue
	United States		$	119,572	$	110,122	$	342,005	$	288,935
	Philippines			83,299		86,957		245,301		255,983
	Latin America			47,914		51,188		142,069		159,852
	Europe / Middle East / Africa			22,164		39,031		93,614		122,802
	Canada			8,364		12,829		31,605		38,674
	Asia Pacific			4,955		4,108		13,126		12,604
		Total	$	286,268	$	304,235	$	867,720	$	878,850