RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2017

RELATED PARTY TRANSACTIONS [ABSTRACT]

RELATED PARTY TRANSACTIONS

(16)RELATED PARTY

The Company entered into an agreement under which Avion, LLC (“Avion”) and Airmax LLC (“Airmax”) provide certain aviation flight services as requested by the Company. Such services include the use of an aircraft and flight crew. Kenneth D. Tuchman, Chairman and Chief Executive Officer of the Company, has a direct 100% beneficial ownership interest in Avion and Airmax. During the six months ended June 30, 2017 and 2016, the Company expensed $0.4 million and $0.5 million, respectively, to Avion and Airmax for services provided to the Company. There was $100 thousand in payments due and outstanding to Avion and Airmax as of June 30, 2017.

During 2014, the Company entered into a vendor contract with Convercent Inc. to provide learning management and web and telephony based global helpline solutions. This contract was renewed, after an arms-length market pricing review, in the fourth quarter of 2016. The majority owner of Convercent is a company which is owned and controlled by Kenneth D. Tuchman, Chairman and Chief Executive Officer of the Company. During the six months ended June 30, 2017 and 2016, the Company paid $30 thousand and $50 thousand, respectively.

During 2015, the Company entered into a contract to purchase software from CaféX, which is a company that TeleTech holds a 17.2% equity investment in. During the fourth quarter of 2016, and the second quarter of 2017, the Company purchased $0.25 million and $0.6 million, respectively, of software from CaféX. See Note 2 for further information regarding this investment.