SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2024

SEGMENT INFORMATION [ABSTRACT]

SEGMENT INFORMATION

(3)SEGMENT INFORMATION

The Company reports the following two segments:

TTEC Digital and the CX Technology Services Industry

TTEC Digital buyers are seeking solutions in several areas including cost optimization, migration from outdated legacy platforms to more agile cloud environments, lack of CX talent and expertise and a need for a practical way forward with AI. TTEC Digital takes a technology agnostic approach to these challenges and focuses on designing and delivering solutions specific to each client’s specifications. TTEC Digital has entered into strategic partnerships with the leading CX software vendors including Genesys, Microsoft, Cisco, AWS and Google which positions TTEC Digital to support the majority of CX platform requirements.

TTEC Digital’s solutions are built to respond to market needs for both enterprise and small and medium-sized business clients. AI design and delivery capabilities are woven across all four of the following pillars.

• Professional Services:  CX and AI solution planning, design, and implementation services

• Managed Services: Cloud application and premise support

• CX Consulting, Analytics and AI:  Transformation strategy and design, data science, engineering, and visualization

• IP & Software: Custom software engineering through TTEC Digital’s IP and Software division

The segment has a three-pronged go to market strategy that includes growing existing client relationships, partner channel motions and general market development. In 2023, TTEC Digital expanded its Hyderabad Innovation Studio in India with the goal of continuing to expand its offshore delivery capabilities, and currently approximately 40% of the staff are located in one of several offshore locations.

TTEC Engage and the CX Business Process Outsourcing Services Industry

The TTEC Engage segment’s solutions are built to respond to the following market needs for clients.

• Customer Support  

• Tech Support

• Revenue Generation and Growth Services

• Trust & Safety

• AI Operations, including data annotation and labeling

• Back-office Support

TTEC Engage goes to market through a vertical approach with customized solutions that include industry specific talent, technology, certifications, and capabilities. For example, in the Banking, Financial Services and Insurance (BFSI) vertical, we support several lines of business with customized offerings for retail banking, online banking, credit card, property and casualty and loans. In healthcare, the segment supports care, technical support, revenue generation and back-office capabilities to meet the needs of payer, provider, clinical and pharma clients.

The Company allocates to each segment its portion of corporate operating expenses. All intercompany transactions between the reported segments for the periods presented have been eliminated.

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

Three Months Ended March 31, 2024

							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	112,031	$	—	$	112,031	$	7,050	$	3,288
TTEC Engage		464,607		—		464,607		18,095		19,423
Total	$	576,638	$	—	$	576,638	$	25,145	$	22,711

Three Months Ended March 31, 2023

							Depreciation		Income
	Gross		Intersegment		Net		&		from
	Revenue		Sales		Revenue		Amortization		Operations
TTEC Digital	$	116,927	$	—	$	116,927	$	6,861	$	785
TTEC Engage		516,359		—		516,359		18,966		43,626
Total	$	633,286	$	—	$	633,286	$	25,827	$	44,411

	Three Months Ended
	March 31,
	2024		2023
Capital Expenditures
TTEC Digital	$	1,787	$	2,274
TTEC Engage		11,686		11,395
Total	$	13,473	$	13,669

	March 31, 2024		December 31, 2023
Total Assets
TTEC Digital	$	817,502	$	815,488
TTEC Engage		1,297,552		1,370,110
Total	$	2,115,054	$	2,185,598

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

	Three Months Ended March 31,
	2024		2023
Revenue
United States / Canada	$	386,916	$	444,035
Philippines / Asia Pacific / India		120,465		122,039
Europe / Middle East / Africa		38,844		34,455
Latin America		30,413		32,757
Total	$	576,638	$	633,286