10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to                

Commission file number 1-12793

StarTek, Inc.

(Exact name of registrant as specified in its charter)

Delaware	84-1370538
(State or other jurisdiction of	(I.R.S. employer
incorporation or organization)	Identification No.)
8200 E. Maplewood Ave., Suite 100
Greenwood Village, Colorado	80111
(Address of principal executive offices)	(Zip code)

(303) 262-4500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x Noo

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yesx  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filero	Accelerated filer x
Non-accelerated filero	Smaller reporting companyo
(Do not check if a smaller reporting company)

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yeso  Nox

As of March 5, 2015, there were 15,524,568 shares of Common Stock outstanding.

STARTEK, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

FORM 10-Q

	PART I - FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	Page
	Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2015 and 2014 (Unaudited)	2
	Consolidated Balance Sheets as of March 31, 2015 (Unaudited) and December 31, 2014	3
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2015 and 2014 (Unaudited)	4
	Notes to Consolidated Financial Statements (Unaudited)	5
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	12
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	18
ITEM 4.	Controls and Procedures	19
	PART II - OTHER INFORMATION
ITEM 1A.	Risk Factors	19
ITEM 5.	Other Information	19
ITEM 6.	Exhibits	20
Signatures		21

NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the following:

• certain statements, including possible or assumed future results of operations, in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”;

• any statements regarding the prospects for our business or any of our services;

• any statements preceded by, followed by or that include the words “may,” “will,” “should,” “seeks,” “believes,” “expects,” “anticipates,” “intends,” “continue,” “estimate,” “plans,” “future,” “targets,” “predicts,” “budgeted,” “projections,” “outlooks,” “attempts,” “is scheduled,” or similar expressions; and

• other statements regarding matters that are not historical facts.

Our business and results of operations are subject to risks and uncertainties, many of which are beyond our ability to control or predict. Because of these risks and uncertainties, actual results may differ materially from those expressed or implied by forward-looking statements, and investors are cautioned not to place undue reliance on such statements, which speak only as of the date thereof. Important factors that could cause actual results to differ materially from our expectations and may adversely affect our business and results of operations, include, but are not limited to, those items described herein or set forth in Item 1A. “Risk Factors” appearing in our Annual Report on Form 10-K for the year ended December 31, 2014. Unless otherwise noted in this report, any description of “us," “we,” or "our," refers to StarTek, Inc. ("STARTEK") and its subsidiaries.

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

STARTEK, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended March 31,
	2015			2014
Revenue	$	63,653		$	63,209
Cost of services	57,536			54,991
Gross profit	6,117			8,218
Selling, general and administrative expenses	8,061			8,249
Restructuring charges	806			191
Operating loss	(2,750		)	(222		)
Interest and other income (expense), net	(238		)	(128		)
Loss before income taxes	(2,988		)	(350		)
Income tax expense	187			150
Net loss	$	(3,175	)	$	(500	)
Other comprehensive income (loss), net of tax:				1
Foreign currency translation adjustments	(67		)	(112		)
Change in fair value of derivative instruments	8			355
Comprehensive loss	$	(3,234	)	$	(257	)
Net loss per common share - basic and diluted	$	(0.21	)	$	(0.03	)
Weighted average common shares outstanding - basic and diluted	15,417			15,377

See Notes to Consolidated Financial Statements.

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STARTEK, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	As of March 31,			As of December 31,
	2015  (unaudited)			2014
ASSETS
Current assets:
Cash and cash equivalents	$	6,465		$	5,306
Trade accounts receivable, net	45,797			46,103
Derivative asset	17			48
Prepaid expenses	3,465			2,257
Other current assets	1,170			794
Total current assets	56,914			54,508
Property, plant and equipment, net	32,398			28,180
Long-term deferred income tax assets	1,386			1,429
Intangible assets, net	2,512			2,609
Goodwill	4,136			4,136
Other long-term assets	2,892			2,931
Total assets	$	100,238		$	93,793
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	10,812		$	10,434
Accrued liabilities:
Accrued payroll	7,019			5,522
Accrued compensated absences	2,173			2,309
Other accrued liabilities	1,122			3,040
Line of credit	9,286			4,640
Derivative liability	1,210			1,250
Deferred income tax liabilities	991			965
Other current liabilities	4,604			3,512
Total current liabilities	37,217			31,672
Deferred rent	1,897			1,593
Long-term obligations under capital leases	7,826			4,264
Other liabilities	1,303			1,583
Total liabilities	48,243			39,112
Commitments and contingencies
Stockholders’ equity:
Common stock, 32,000,000 non-convertible shares, $0.01 par value, authorized; 15,425,275 and 15,414,803 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively	154			154
Additional paid-in capital	76,604			76,056
Accumulated other comprehensive loss	(884		)	(825		)
Accumulated deficit	(23,879		)	(20,704		)
Total stockholders’ equity	51,995			54,681
Total liabilities and stockholders’ equity	$	100,238		$	93,793

See Notes to Consolidated Financial Statements.

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STARTEK, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2015			2014
Operating Activities
Net loss	$	(3,175	)	$	(500	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	3,036			2,356
Losses on disposal of assets	—			5
Share-based compensation expense	496			402
Amortization of deferred gain on sale leaseback transaction	(57		)	(64		)
Deferred income taxes	26			168
Income tax benefit related to other comprehensive income	—			(213		)
Changes in operating assets and liabilities:
Trade accounts receivable, net	270			(3,028		)
Prepaid expenses and other assets	(1,561		)	838
Accounts payable	1,441			(218		)
Accrued and other liabilities	46			(1,080		)
Net cash provided by (used in) operating activities	522			(1,334		)
Investing Activities
Proceeds from note receivable	—			159
Purchases of property, plant and equipment	(3,509		)	(2,354		)
Cash paid for prior period acquisitions of businesses	(234		)	(199		)
Net cash used in investing activities	(3,743		)	(2,394		)
Financing Activities
Proceeds from stock option exercises	—			24
Proceeds from the issuance of common stock	52			27
Proceeds from line of credit	66,082			41,760
Principal payments on line of credit	(61,436		)	(42,254		)
Principal payments on long-term debt	(92		)	—
Principal payments on capital lease obligations	(199		)	(51		)
Net cash provided by (used in) financing activities	4,407			(494		)
Effect of exchange rate changes on cash	(27		)	42
Net increase (decrease) in cash and cash equivalents	1,159			(4,180		)
Cash and cash equivalents at beginning of period	$	5,306		$	10,989
Cash and cash equivalents at end of period	$	6,465		$	6,809
Supplemental Disclosure of Noncash Investing Activities
Assets acquired through capital lease	$	4,840		$	—

See Notes to Consolidated Financial Statements.

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STARTEK, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2015

(In thousands, except share and per share data)

(Unaudited)

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. These financial statements reflect all adjustments (consisting only of normal recurring entries, except as noted) which, in the opinion of management, are necessary for fair presentation. Operating results for the three months ended March 31, 2015, are not necessarily indicative of operating results that may be expected during any other interim period of 2015 or the year ending December 31, 2015.

The consolidated balance sheet as of December 31, 2014, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

Unless otherwise noted in this report, any description of "us," "we," or "our," refers to StarTek, Inc. and its subsidiaries. Financial information in this report is presented in U.S. dollars.

Use of Estimates

The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes.  Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they are determined to be necessary.

Recent Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in ASU 2015-03. ASU 2015-03 will be effective for fiscal years beginning after December 15, 2015. We are currently evaluating the impact that the adoption of ASU 2015-03 may have on our consolidated financial statements or disclosures.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016; however, in April 2015, the FASB voted to propose a one-year deferral of the effective date. The proposed deferral may permit early adoption, but would not allow adoption any earlier than the original effective date of the standard. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently assessing the impact the adoption of ASU 2014-09, including possible transition alternatives, will have on our financial statements.

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2.  ACQUISITION

Collection Center, Inc.

On October 1, 2014, we acquired Collection Center, Inc. ("CCI"), a receivables management company for approximately $4,105, net of interest incurred. CCI specializes in providing collection services primarily in the healthcare industry and also in the financial services, utility and commercial industries.

We paid $2,610 of the purchase price in cash on the acquisition date with the remaining balance to be paid quarterly by September 2016. The remaining payments may be adjusted if certain quarterly revenue targets are not met. Minimal acquisition-related expenses were paid, which were recorded in selling, general and administrative expenses. Financial results from the date of acquisition are included in the results of operations within our Domestic segment.

We finalized our purchase price allocation during the three months ended March 31, 2015 and there were no adjustments to the preliminary estimates of fair value assigned at the acquisition date.

	Acquisition Date Fair Value
Customer relationships	$	1,840
Trade name	130
Goodwill	2,135
Total purchase price	$	4,105

The customer relationships and trade name have estimated useful lives of eight years and seven years, respectively. The goodwill recognized was attributable primarily to the acquired workforce and further expansion into the health care industry.

3. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The goodwill of $4,136 recognized from our acquisitions during 2013 and 2014 was assigned to our Domestic segment. The tax basis of the goodwill is deductible for income tax purposes.

Intangible Assets

The following table presents our intangible assets as of March 31, 2015:

	Gross Intangibles		Accumulated Amortization		Net Intangibles		Weighted Average Amortization Period (years)
Developed technology	$	390	$	97	$	293	3.50
Customer base	2,310		258		2,052		4.25
Trade name	200		33		167		3.41
Noncompete agreement	10		10		—
	$	2,910	$	398	$	2,512	4.11

Expected future amortization of intangible assets as of March 31, 2015 is as follows:

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Year Ending December 31,	Amount
Remainder of 2015	$	290
2016	354
2017	343
2018	343
2019	334
Thereafter	848

4.  RESTRUCTURING CHARGES

Restructuring Charges

The table below summarizes the balance of accrued restructuring costs, which is included in other current liabilities in our consolidated balance sheets, and the changes during the three months ended March 31, 2015: 

	Jonesboro			Costa Rica			Corporate			Total
Balance as of December 31, 2014	$	64		$	9		$	32		$	105
Expense (reversal)	(14		)	—			4			(10		)
Payments	(25		)	(9		)	(7		)	(41		)
Balance as of March 31, 2015	$	25		$	—		$	29		$	54

In February 2014, we announced the closure of our Jonesboro, Arkansas facility, which ceased operations in the second quarter of 2014 when the business transitioned to another facility. We established a restructuring reserve of $192 for employee related costs and recognized additional charges of $609 when the facility closed. The remaining costs are expected to be paid out through 2015. We also recognized a net gain of $256 related to the early termination of our lease.

In June 2014, we announced the closure of our Heredia, Costa Rica facility, included in our Latin America segment, which ceased operations in the third quarter of 2014. We established a restructuring reserve of $1,004 for employee related costs and recognized additional charges in the third quarter of 2014 of $338 when the facility closed. The restructuring charges for those employees who continued to work after the notification date were recognized over the service period. The restructuring plan was complete in the first quarter of 2015 and we do not expect to incur any additional restructuring liabilities in future periods for this location.

During 2014, we continued to pursue operating efficiencies through streamlining our organizational structure and leveraging our shared services centers in low-cost regions. We eliminated several positions as a result and incurred restructuring charges of $279. We expect to pay the remaining costs through 2015.

During 2014, we moved forward with our initiative to outsource our data centers and move to a hosted solutions model. We recognized $2,388 of restructuring charges through March 31, 2015. Additional transition costs will be recognized through 2015 as restructuring charges as incurred in operating income and are expected to be approximately $200.

5. NET LOSS PER SHARE

Basic net loss per common share is computed on the basis of our weighted average number of common shares outstanding.  Diluted earnings per share is computed on the basis of our weighted average number of common shares outstanding plus the effect of dilutive stock options and non-vested restricted stock using the treasury stock method.  Securities totaling 2,493,720 and 2,359,409 for the three months ended March 31, 2015 and 2014, respectively, have been excluded from loss per share because their effect would have been anti-dilutive.

6. PRINCIPAL CLIENTS

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The following table represents revenue concentration of our principal clients:

	Three Months Ended March 31,
	2015				2014
	Revenue		Percentage		Revenue		Percentage
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom (2)	$	18,089	28.4	%	$	18,639	29.5	%
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T, Inc. (1)	$	10,740	16.9	%	$	15,344	24.3	%
Comcast Cable Communications Management, LLC, subsidiary of Comcast Corporation (2)	$	8,878	13.9	%	$	10,959	17.3	%

(1) Revenue from this customer is generated through our Domestic and Asia Pacific segments.

(2) Revenue from this customer is generated through our Domestic and Asia Pacific segments in 2014 and 2015 and through our Latin America segment in 2014.

We enter into contracts and perform services with our major clients that fall under the scope of master service agreements (MSAs) with statements of work (SOWs) specific to each line of business. These MSAs and SOWs may automatically renew or be extended by mutual agreement and are generally terminable by the customer or us with prior written notice.

On July 28, 2011, we entered into a new MSA with T-Mobile effective July 1, 2011, which has an initial term of five years and will automatically renew for additional one-year periods thereafter, but may be terminated by T-Mobile upon 90 days written notice.

On January 25, 2013, we entered into a new MSA with AT&T Services, Inc., which expires December 31, 2015 and may be extended upon mutual agreement, but may be terminated by AT&T with written notice.

On January 4, 2014, we entered into a new MSA with Comcast, effective June 22, 2013. The new MSA has an initial term of one year and will automatically renew for additional one-year periods unless either party gives notice of cancellation. Comcast may terminate the agreement upon 90 days written notice. Neither party gave notice of termination; therefore, the contract has renewed for the year ending June 22, 2015, but Comcast may terminate the agreement upon 90 days written notice.

7.  DERIVATIVE INSTRUMENTS

We use derivatives to partially offset our business exposure to foreign currency exchange risk. We enter into foreign currency exchange contracts to hedge our anticipated operating commitments that are denominated in foreign currencies, including forward contracts and range forward contracts (a transaction where both a call option is purchased and a put option is sold).  The contracts cover periods commensurate with expected exposure, generally three to twelve months, and are principally unsecured foreign exchange contracts.  The market risk exposure is essentially limited to risk related to currency rate movements.  We operate in Canada, the Philippines and Honduras. The functional currencies in Canada and the Philippines are

the Canadian dollar and the Philippine peso, respectively, which are used to pay labor and other operating costs in those

countries. We provide funds for these operating costs as our client contracts generate revenues, which are paid in U.S. dollars.

In Honduras, our functional currency is the U.S. dollar and the majority of our costs are denominated in U.S. dollars. As of March 31, 2015, we have not entered into any arrangements to hedge our exposure to fluctuations in the Honduran lempira relative to the U.S. dollar.

We have elected to designate our derivatives as cash flow hedges in order to associate the results of the hedges with forecasted expenses. Unrealized gains and losses are recorded in accumulated other comprehensive income (“AOCI”) and will be re-classified to operations as the forecasted expenses are incurred, typically within one year. During the three months ended March 31, 2015 and 2014, our cash flow hedges were highly effective and hedge ineffectiveness was not material.

The following table shows the notional amount of our foreign exchange cash flow hedging instruments as of March 31, 2015:

8

	Local Currency Notional Amount	U.S. Dollar Notional Amount
Canadian Dollar	10,600	$	9,102
Philippine Peso	1,590,830	35,734
		$	44,836

Derivative assets and liabilities associated with our hedging activities are measured at gross fair value as described in Note 8, "Fair Value Measurements", and are reflected as separate line items in our consolidated balance sheets.

8.  FAIR VALUE MEASUREMENTS

The carrying value of our cash and cash equivalents, accounts receivable, accounts payable and line of credit approximate fair value because of their short-term nature.

Derivative Instruments and Hedging Activities

The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves.  The inputs to the valuation pricing models are observable in the market, and as such the derivatives are classified as Level 2 in the fair value hierarchy.

Restructuring Charges

Accrued restructuring costs were valued using a discounted cash flow model.  Significant assumptions used in determining the amount of the estimated liability for closing a facility are the estimated liability for future lease payments on vacant facilities and the discount rate utilized to determine the present value of the future expected cash flows. If the assumptions regarding early termination and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses, or conversely, a future gain, in the consolidated statements of operations and comprehensive income (loss).

In the future, if we sublease for periods that differ from our assumption or if an actual buy-out of a lease differs from our estimate, we may be required to record a gain or loss.  Future cash flows also include estimated property taxes through the remainder of the lease term, which are valued based upon historical tax payments.  Given that the restructuring charges were valued using our internal estimates using a discounted cash flow model, we have classified the accrued restructuring costs as Level 3 in the fair value hierarchy.

Fair Value Hierarchy

The following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy.  Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2015
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	17	$	—	$	17
Total fair value of assets measured on a recurring basis	$	—	$	17	$	—	$	17
Liabilities:
Foreign exchange contracts	$	—	$	1,210	$	—	$	1,210
Total fair value of liabilities measured on a recurring basis	$	—	$	1,210	$	—	$	1,210

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	Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	48	$	—	$	48
Total fair value of assets measured on a recurring basis	$	—	$	48	$	—	$	48
Liabilities:
Foreign exchange contracts	$	—	$	1,250	$	—	$	1,250
Total fair value of liabilities measured on a recurring basis	$	—	$	1,250	$	—	$	1,250

	Liabilities Measured at Fair Value on a Non-Recurring Basis as of March 31, 2015
	Level 1		Level 2		Level 3		Total
Liabilities:
Accrued restructuring costs	$	—	$	—	$	54	$	54
Total fair value of liabilities measured on a non-recurring basis	$	—	$	—	$	54	$	54

	Liabilities Measured at Fair Value on a Non-Recurring Basis as of December 31, 2014
	Level 1		Level 2		Level 3		Total
Liabilities:
Accrued restructuring costs	$	—	$	—	$	105	$	105
Total fair value of liabilities measured on a non-recurring basis	$	—	$	—	$	105	$	105

9. DEBT

Line of Credit

Effective February 28, 2012, we entered into a secured revolving credit facility ("Credit Agreement") with Wells Fargo Bank, which has a maturity date of February 28, 2016. The amount we may borrow under the Credit Agreement is the lesser of the borrowing base calculation and $20,000. As of March 31, 2015, we had $9,286 outstanding borrowings on our credit facility and available capacity was $10,654, net of $60 of letters of credit backed by the facility.

Under the Credit Agreement, we are subject to certain standard affirmative and negative covenants, including the following financial covenants: 1) maintaining a Minimum Adjusted EBITDA, as defined in the Credit Agreement, of no less than the cumulative month-end minimum amounts set forth in an amendment to the Credit Agreement and 2) limiting non-financed capital expenditures to no more than the cumulative month-end maximum amounts set forth in an amendment to the Credit Agreement. We were in compliance with all such covenants as of March 31, 2015.

In March 2015, the borrowing base was increased to $20,000 and the Company and Wells Fargo agreed on the financial covenants for 2015 and the first quarter of 2016, constituting the Ninth Amendment to the Credit Agreement. Previous amendments are disclosed in our 2014 Annual Report on Form 10-K. Subsequent to quarter-end, the Credit Agreement was replaced with a new facility with BMO Harris Bank N.A., see Note 13 "Subsequent Events".

Financing Agreement

We entered into a financing agreement for the purchase of certain software licenses and related hardware for approximately $1,000, which were delivered and placed into service in April 2014. Monthly payments commenced July 2014. As of March 31, 2015, the current and long-term portion was $380 and $408, respectively, and at December 31, 2014, the current and long-

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term portion was $373 and $506, respectively. The amounts are included in other current liabilities and other liabilities on the consolidated balance sheets.

Capital Lease Obligations

We had long-term obligations under capital leases of $7,826 and $4,264 as of March 31, 2015 and December 31, 2014, respectively. Long-term obligations under capital leases previously presented for prior periods have been reclassified to conform to the current presentation. The current obligations under capital leases of $1,837 and $810 as of March 31, 2015 and December 31, 2014, respectively, are included in other current liabilities on the consolidated balance sheets. The related assets are included in property, plant and equipment in the consolidated balance sheets.

10. SHARE-BASED COMPENSATION

Our share-based compensation arrangements include grants of stock options, restricted stock awards and deferred stock units under the StarTek, Inc. 2008 Equity Incentive Plan, certain awards granted outside of these plans and our Employee Stock Purchase Plan. The compensation expense that has been charged against income for stock option awards and restricted stock for the three months ended March 31, 2015 and 2014 was $496 and $402, respectively, and is included in selling, general and administrative expense.  As of March 31, 2015, there was $1,942 of total unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted-average period of 2.0 years.

11.  ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss consisted of the following items:

	Foreign Currency Translation Adjustment			Derivatives Accounted for as Cash Flow Hedges			Total
Balance at December 31, 2014	$	1,486		$	(2,311	)	$	(825	)
Foreign currency translation	(67		)	—			(67		)
Reclassification to operations	—			622			622
Unrealized gains (losses)	—			(614		)	(614		)
Balance at March 31, 2015	$	1,419		$	(2,303	)	$	(884	)

Reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2015 and 2014 were as follows:

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Loss				Affected Line Item in the Consolidated Statements of Operations and Comprehensive Loss
	Three Months Ended March 31,
	2015		2014
Losses on cash flow hedges
Foreign exchange contracts	$	576	$	1,222	Cost of services
Foreign exchange contracts	46		93		Selling, general and administrative expenses
Total reclassifications for the period	$	622	$	1,315

12.  SEGMENT INFORMATION

We operate our business within three reportable segments, based on the geographic regions in which our services are rendered: Domestic, Asia Pacific and Latin America. As of March 31, 2015, our Domestic segment included the operations of nine facilities in the U.S. and one facility in Canada. Our Asia Pacific segment included the operations of four facilities in the Philippines and our Latin America segment included two facilities in Honduras. Operations at our facility in Costa Rica, which were included in our Latin America segment, ceased in August 2014.

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We primarily evaluate segment operating performance in each reporting segment based on net sales, gross profit and working capital. Certain operating expenses are not allocated to each reporting segment; therefore, we do not present income statement information by reporting segment below the gross profit level.

Information about our reportable segments, which correspond to the geographic areas in which we operate, for the three months ended March 31, 2015 and 2014 is as follows:

	For the Three Months Ended March 31,
	2015		2014
Revenue:
Domestic	$	35,624	$	33,307
Asia Pacific	20,331		21,052
Latin America	7,698		8,850
Total	$	63,653	$	63,209
Gross profit:
Domestic	$	2,407	$	4,543
Asia Pacific	2,522		3,604
Latin America	1,188		71
Total	$	6,117	$	8,218

13.  SUBSEQUENT EVENTS

Merger Agreement

On May 11, 2015, we entered into a definitive agreement to acquire Accent Marketing Services, L.L.C., a customer engagement outsourcing agency servicing the telecommunications, retail, consumer products, technology and financial services industries for approximately $16,000 in cash.

BMO Harris Bank Credit Facility

On April 29, 2015, we terminated our $20,000 secured revolving credit facility with Wells Fargo, which was effective through February 28, 2016, and replaced it with a secured revolving credit facility with BMO Harris Bank N.A.  The credit agreement is effective through April 2020 and the amount we may borrow under the agreement is the lesser of the borrowing base calculation and $50,000, and so long as no default has occurred and with the administrative agent’s consent, we may increase the maximum availability to $70,000 in $5,000 increments.

Enid, Oklahoma

In April 2015, we made the decision to discontinue our operations in Enid, Oklahoma.

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and the related notes included elsewhere in this report, as well as the financial and other information included in our 2014 Annual Report on Form 10-K.

BUSINESS DESCRIPTION AND OVERVIEW

STARTEK is a trusted business process outsourcing ("BPO") service provider with comprehensive contact centers around the

world. Our employees, whom we call Brand Warriors, are at the forefront of customer care and represent our greatest asset. For

over 25 years, these Brand Warriors have been committed to making a positive impact for our clients’ business results, enhancing the customer experience while reducing costs for our clients.

Our vision is to be the most trusted global service provider by passionately engaging with all of our stakeholders in a different

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and more meaningful way. We accomplish this by aligning with our clients’ business objectives. The STARTEK Advantage

System is the sum total of our culture, customized solutions and processes that enhance our clients’ customer experience. The

STARTEK Advantage System is focused on improving customer experience and reducing total cost of ownership for our

clients. STARTEK has proven results for the multiple services we provide, including sales, order management and

provisioning, customer care, technical support, receivables management, and retention programs. We manage programs using a

variety of multi-channel customer interaction capabilities, including voice, chat, email, social media, IVR and back-office

support. STARTEK has delivery centers in the United States, Philippines, Canada, Honduras and through our

STARTEK@Home workforce.

We seek to become a trusted partner to our clients and provide meaningful impact BPO services. Our approach is to develop relationships with our clients that are partnering and collaborative in nature where we are focused, flexible and responsive to their business needs. In addition, we offer creative industry-based solutions to meet our clients’ ever changing business needs. The end result is the delivery of a quality customer experience to our clients’ customers. To achieve sustainable, predictable, profitable growth, our strategy is to:

• grow our existing client base by deepening and broadening our relationships,

• add new clients and continue to diversify our client base,

• improve the profitability of our business through operational improvements and increased utilization,

• expand our global delivery platform to meet our clients' needs,

• broaden our service offerings by providing more innovative and technology-enabled solutions, and

• expand into new verticals.

As of March 31, 2015, our Domestic segment included the operations of nine facilities in the U.S. and one facility in Canada. Our Asia Pacific segment included the operations of four facilities in the Philippines, and our Latin America segment included two facilities in Honduras.

In April 2015, we made the decision to discontinue our operations in Enid, Oklahoma.

SIGNIFICANT DEVELOPMENTS DURING THE THREE MONTHS ENDED MARCH 31, 2015

Hamilton, Ohio and Wichita, Kansas

During the first quarter of 2015, we entered into lease agreements for our new locations in Hamilton, Ohio and Wichita, Kansas. The new facilities are expected to be operational by the third quarter of 2015.

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RESULTS OF OPERATIONS — THREE MONTHS ENDED MARCH 31, 2015 AND 2014

 The following table summarizes our revenues and gross profit for the periods indicated, by reporting segment:

	For the Three Months Ended March 31,
	2015					2014
	(in 000s)			(% of Total)		(in 000s)			(% of Total)
Domestic:
Revenue	$	35,624		56.0	%	$	33,307		52.7	%
Cost of services	33,218			57.7	%	28,764			52.3	%
Gross profit	$	2,406		39.3	%	$	4,543		55.3	%
Gross profit %	6.8		%			13.6		%
Asia Pacific:
Revenue	$	20,331		31.9	%	$	21,052		33.3	%
Cost of services	17,808			31.0	%	17,448			31.7	%
Gross profit	$	2,523		41.2	%	$	3,604		43.9	%
Gross profit %	12.4		%			17.1		%
Latin America:
Revenue	$	7,698		12.1	%	$	8,850		14.0	%
Cost of services	6,510			11.3	%	8,779			16.0	%
Gross profit	$	1,188		19.4	%	$	71		0.9	%
Gross profit %	15.4		%			0.8		%
Company Total:
Revenue	$	63,653		100.0	%	$	63,209		100.0	%
Cost of services	57,536			100.0	%	54,991			100.0	%
Gross profit	$	6,117		100.0	%	$	8,218		100.0	%
Gross profit %	9.6		%			13.0		%

Revenue

Revenue increased by $0.4 million, from $63.2 million to $63.6 million in the first quarter of 2015. The Domestic segment increase of $2.3 million was due to $13.7 million of new business and growth from existing programs, partially offset by $10.3 million of volume reductions and $1.2 million of lost programs. The $10.3 million volume reduction includes a decline of $4.6 million in AT&T revenue resulting from the transition of work from one program to another during mid 2014. Additionally, the first quarter of 2014 benefited from a temporary program with an existing client. Asia Pacific revenues declined by $0.7 million due to $3.2 million of volume reductions from existing clients and one lost program of $0.4 million, partially offset by $2.9 million of growth from existing and new clients. The decrease in the Latin America segment of $1.1 million was due to $0.6 million of volume reductions from a key client and a $2.2 million reduction due to the closure of the Costa Rica facility, partially offset by $1.7 million of growth from existing and new clients in our Honduras facilities.

Cost of Services and Gross Profit

The gross profit as a percentage of revenue decrease of 3.4% was primarily due to lower call volumes and a change in mix across two key programs with one client, and the dilutive effect of the new capacity added in 2014. Domestic gross profit as a percentage of revenue decreased to 6.8% in 2015 from 13.6% in 2014 primarily due to the change in mix and reduction of volumes from a key client. The Asia Pacific decline of 4.7% was due to the effect of the new capacity added during 2014 not yet fully ramped. Latin America gross profit increased by $1.1 million, or 14.6% as a percentage of revenue, due to the closure of Costa Rica and continuing increased capacity utilization in Honduras.

The following paragraphs discuss other items affecting the results of our operations for the three months ended March 31, 2015 and 2014.

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Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by $0.2 million during the first quarter of 2015. Such expenses as a percentage of revenue decreased from 13.1% in 2014 to 12.7% in 2015.

Restructuring Charges

Restructuring charges totaled $0.8 million during the first quarter of 2015, which primarily consisted of $0.7 million related to outsourcing our data centers. Restructuring charges totaled $0.2 million during the first quarter of 2014 for employee related costs due to the expected closure of the Jonesboro, Arkansas facility.

Interest and Other Income (Expense), Net

Interest and other income (expense), net for the three months ended March 31, 2015 and 2014 of approximately $0.2 million of expense and $0.1 million of expense, respectively, primarily consists of interest expense and amortization of loan fees associated with our line of credit.

Income Tax Expense

Income tax expense during the first quarter of 2015 was $0.2 million compared to $0.1 million in the first quarter of 2014. Income tax expense is primarily the impact of our Canadian operations. We have tax holidays in Honduras and for certain facilities in the Philippines.

LIQUIDITY AND CAPITAL RESOURCES

Our primary sources of liquidity are cash flows generated by operating activities and available borrowings under our revolving credit facility. We have historically utilized these resources to finance our operations and make capital expenditures associated with capacity expansion, upgrades of information technologies and service offerings, and business acquisitions. Due to the timing of our collections of receivables due from our major customers, we have historically needed to draw on the line of credit periodically for ongoing working capital needs. Based on current expectations, we believe our cash from operations and capital resources will be sufficient to operate our business for at least the next 12 months.

As of March 31, 2015, working capital totaled $19.7 million and our current ratio was 1.53:1, compared to working capital of $22.8 million and a current ratio of 1.72:1 at December 31, 2014.

Net cash flows provided by operating activities for the three months ended March 31, 2015 was $0.5 million compared to net cash flows used in operating activities of $1.4 million for the three months ended March 31, 2014. The $1.9 million increase in cash provided was primarily due to a $3.8 million increase in cash provided from working capital and an increase in non-cash reconciling items of $0.8 million, offset by lower earnings of $2.7 million. The $3.8 million in cash provided by working capital was primarily the result of increased receivables collections. Cash flows from operating activities can vary significantly from quarter to quarter depending upon the timing of operating cash receipts and payments, especially accounts receivable and accounts payable.

Net cash used in investing activities for the three months ended March 31, 2015 of $3.7 million was primarily for capital expenditures of $3.5 million related to facility expansions and cash paid for prior period acquisitions of $0.2 million. This compares to net cash used in investing activities of $2.4 million for the three months ended March 31, 2014, which was primarily for capital expenditures.

Net cash provided by financing activities increased by approximately $4.9 million in the first three months of 2015 compared to the first three months of 2014, primarily due to net advances on our line of credit of $5.1 million, partially offset by payments on long-term debt of $0.1 million and payments on capital lease obligations of $0.1 million.

Secured Revolving Credit Facility. We had a secured revolving credit facility with Wells Fargo, with a borrowing capacity of $20.0 million at March 31, 2015 to provide liquidity for working capital needs and a source of financing growth opportunities. After consideration of $9.3 million of borrowings outstanding under the credit facility and letters of credit outstanding thereunder of $0.06 million, our remaining borrowing capacity was $10.7 million at March 31, 2015.

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In April 2015, we terminated our $20.0 million secured revolving credit facility with Wells Fargo, which was effective through February 28, 2016, and replaced it with a secured revolving credit facility with BMO Harris Bank N.A..  The credit agreement is effective through April 2020 and the amount we may borrow under the agreement is the lesser of the borrowing base calculation and $50.0 million, and so long as no default has occurred and with the administrative agent’s consent, we may increase the maximum availability to $70.0 million in $5.0 million increments.

Debt Covenants. Our secured revolving credit facility with Wells Fargo contained standard affirmative and negative covenants that may have limited or restricted our ability to sell assets, incur additional indebtedness and engage in mergers and acquisitions. We were in compliance with all debt covenants at March 31, 2015.

CONTRACTUAL OBLIGATIONS

There were no material changes in our contractual obligations during the first quarter of 2015 or prior to filing, except as noted below.

Line of Credit

In April 2015, we terminated our secured revolving credit facility with Wells Fargo Bank, which was effective through February 28, 2016, and replaced it with a secured revolving credit facility with BMO Harris Bank ("BMO").  The Credit Agreement is effective April 29, 2015 through April 29, 2020.  The amount that we may borrow under the Credit Agreement is determined by eligible accounts receivable and has an initial availability of $50.0 million, and so long as no default has occurred and with the administrative agent’s consent, we may increase the maximum availability to $70.0 million in $5.0 million increments. Borrowings under the Credit Agreement bear interest at one, two, three or six-month LIBOR, as we select, plus 1.75% to 2.50%, depending on current availability under the Credit Agreement. Until January 1, 2016, the interest rate will be the selected LIBOR plus 1.75%. We will pay letter of credit fees equal to the applicable margin (1.75% to 2.50%) times the daily maximum amount available to be drawn under all letters of credit outstanding and a monthly unused fee at a rate per annum of 0.25% on the aggregate unused commitment under the Credit Agreement. We granted BMO a security interest in all of our cash and cash equivalents, accounts receivable, general intangibles, owned real property, and equipment and fixtures.  In addition, under the Credit Agreement, we are subject to certain financial covenants, which include 1) maintaining a maximum consolidated fixed charge coverage ratio of 1.10 to 1.00 and 2) limiting non-financed capital expenditures during 2015 to $10.5 million and during each fiscal year thereafter during the term to $10.0 million.

On May 11, 2015, we entered into a definitive agreement to acquire Accent Marketing Services, L.L.C., a business process outsourcing company providing multi-channel customer engagement solutions. The purchase price is approximately $16.0 million in cash, which we plan to finance through the $50.0 million secured revolving credit facility with BMO.

OFF-BALANCE SHEET ARRANGEMENTS

We have no material off-balance sheet transactions, unconditional purchase obligations or similar instruments and we are not a guarantor of any other entities’ debt or other financial obligations.

VARIABILITY OF OPERATING RESULTS

We have experienced and expect to continue to experience some quarterly variations in revenue and operating results due to a variety of factors, many of which are outside our control, including: (i) timing and amount of costs incurred to expand capacity in order to provide for volume growth from existing and future clients; (ii) changes in the volume of services provided to principal clients; (iii) expiration or termination of client projects or contracts; (iv) timing of existing and future client product launches or service offerings; (v) seasonal nature of certain clients’ businesses; and (vi) variability in demand for our services by our clients depending on demand for their products or services and/or depending on our performance.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

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In preparing our consolidated financial statements in conformity with GAAP, management must undertake decisions that impact the reported amounts and related disclosures. Such decisions include the selection of the appropriate accounting principles to be applied and assumptions upon which accounting estimates are based. Management applies its best judgment based on its understanding and analysis of the relevant circumstances to reach these decisions. By their nature, these judgments are subject to an inherent degree of uncertainty. Accordingly, actual results may vary significantly from the estimates we have applied.

Our critical accounting policies and estimates are consistent with those disclosed in our 2014 Annual Report on Form 10-K. Please refer to Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations,” in our 2014 Annual Report on Form 10-K for a complete description of our Critical Accounting Policies and Estimates.

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange Risks

Market risk relating to our international operations results primarily from changes in foreign exchange rates. To address this risk, we enter into foreign currency exchange contracts. The contracts cover periods commensurate with expected exposure, generally three to twelve months, and are principally unsecured. The cumulative translation effects for subsidiaries using functional currencies other than the U.S. dollar ("USD") are included in accumulated other comprehensive loss in stockholders’ equity. Movements in non-USD currency exchange rates may negatively or positively affect our competitive position, as exchange rate changes may affect business practices and/or pricing strategies of non-U.S. based competitors.

We serve many of our U.S.-based clients in non-U.S. locations, such as Canada, the Philippines and Honduras. Our client

contracts are primarily priced and invoiced in USDs, however, the functional currencies of our Canadian and Philippine

operations are the Canadian dollar ("CAD") and the Philippine peso ("PHP"), respectively. In Honduras, our functional

currency is the USD and the majority of our costs are denominated in USDs.

In order to hedge our exposure to foreign currency transactions and short-term intercompany transactions denominated in the CAD and PHP we had outstanding foreign currency exchange contracts as of March 31, 2015 with notional amounts totaling $44.8 million. If the USD were to weaken against the CAD and PHP by 10% from current period-end levels, we would incur a loss of approximately $4.8 million on the underlying exposures of the derivative instruments. As of March 31, 2015, we have not entered into any arrangements to hedge our exposure to fluctuations in Honduran lempira relative to the USD.

Interest Rate Risk

At March 31, 2015, we had a $20.0 million secured credit facility with Wells Fargo. The interest rate on our credit facility is variable based upon the LIBOR index, and, therefore, is affected by changes in market interest rates. If the LIBOR increased 100 basis points, there would not be a material impact to our unaudited consolidated financial statements.

During the three months ended March 31, 2015, there were no material changes in our market risk exposure.

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ITEM 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures.As of March 31, 2015, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules  13a-15(e) and 15d-15(e) under the Exchange Act). Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2015, our disclosure controls and procedures were effective and were designed to ensure that all information required to be disclosed by us in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and accumulated and communicated to our management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.

Changes in internal controls over financial reporting.There was no change in our internal control over financial reporting that occurred during the quarter ended March 31, 2015, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1A.  RISK FACTORS

There have been no material changes in our risk factors, except as noted below, from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014.

We may not be able to fully recognize the benefits of our recently announced plans to acquire Accent Marketing Services, L.L.C.

On May 11, 2015, we entered into a definitive agreement to acquire all the membership interests of Accent Marketing Services, L.L.C. (“ACCENT”).  We agreed to pay $16.0 million in cash, subject to certain customary post-closing adjustments, to acquire ACCENT, which amount will be financed with borrowings under our credit facility.  We expect to close the transaction on May 31, 2015 and there are no material conditions to closing.  We may not be able to fully recognize the expected financial benefits, including revenue diversification and cost synergies, from the acquisition.  There can be no assurance that we will be able to successfully integrate the business and there can be no assurance that we will be able to retain the employees and customers of ACCENT, which could adversely affect our ability to obtain the expected benefits from the acquisition.  ACCENT provides contact center services, as well as multi-channel customer engagement solutions and, like us, ACCENT has significant customer concentration in the telecommunications industry, which is subject to the same risks of concentration as our current business. 

ITEM 5. OTHER INFORMATION

Submission of Matters to a Vote of Security Holders.

On May 6, 2015, we held our 2015 Annual Meeting of Stockholders. At the Annual Meeting, the stockholders elected six nominees to serve on the Board of Directors, ratified the appointment of EKS&H LLLP as our independent registered public accounting firm for 2015 and approved by non-binding vote the compensation of our named executive officers. The final voting results for each of these matters are set forth below:

1. Election of Directors:

	Number of Shares Voted For	Number of Shares Voted Against	Abstain
Arnaud Ajdler	9,546,344	1,939,588	23,674
Chad A. Carlson	11,343,341	165,591	674
Jack D. Plating	11,330,417	178,515	674
Benjamin L. Rosenzweig	11,330,692	178,240	674
Robert Sheft	11,307,616	201,206	784
Ed Zschau	11,358,497	150,435	674

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There were 2,406,883 broker non-votes on the proposal for election of directors.

2. Ratification of Appointment of Independent Registered Public Accounting Firm:

A total of 13,810,266 shares voted for, 100,895 shares voted against and 5,328 shares abstained from voting. There were no broker non-votes on this matter.

3. Approval by Non-Binding Vote the Compensation of Named Executive Officers:

A total of 11,469,817 shares voted for, 34,008 shares voted against and 5,781 shares abstained from voting. There were 2,406,883 broker non-votes on this matter.

ITEM 6.  EXHIBITS

INDEX OF EXHIBITS

Exhibit		Incorporated Herein by Reference
No.	Exhibit Description	Form	Exhibit	Filing Date
3.1	Restated Certificate of Incorporation of StarTek, Inc.	S-1	3.1	1/29/1997
3.2	Amended and Restated Bylaws of StarTek, Inc.	8-K	3.2	11/1/2011
3.3	Certificate of Amendment to the Certificate of Incorporation of StarTek, Inc. filed with the Delaware Secretary of State on May 21, 1999	10-K	3.3	3/8/2000
3.4	Certificate of Amendment to the Certificate of Incorporation of StarTek, Inc. filed with the Delaware Secretary of State on May 23, 2000	10-Q	3.4	8/14/2000
4.1	Specimen Common Stock certificate	10-Q	4.2	11/6/2007
10.1*	Ninth Amendment to Credit and Security Agreement, by and among Wells Fargo Bank, National Association, and StarTek, Inc.
10.2*†	2015 Executive Incentive Plan
10.3*†	Form of Executive Employment Agreement
31.1*	Certification of Chad A. Carlson pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Lisa A. Weaver pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Written Statement of the Chief Executive Officer and Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101*	The following materials are formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2015 and 2014 (Unaudited), (ii) Consolidated Balance Sheets as of March 31, 2015 (Unaudited) and December 31, 2014, (iii) Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2015 and 2014 (Unaudited) and (iv) Notes to Consolidated Financial Statements (Unaudited)

*	Filed with this Form 10-Q.
†	Management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of Securities Exchange Act of 1934, the registrant has duly caused this Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

STARTEK, INC.
By:	/s/ CHAD A. CARLSON	Date: May 11, 2015
	Chad A. Carlson
	President and Chief Executive Officer
	(principal executive officer)
By:	/s/ LISA A. WEAVER	Date: May 11, 2015
	Lisa A. Weaver
	Senior Vice President, Chief Financial Officer and Treasurer
	(principal financial and accounting officer)

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EX-10.1

NINTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT

THIS AMENDMENT (this “Amendment”) is entered into as of March 18, 2015, by and among WELLS FARGO BANK, NATIONAL ASSOCIATION (“Lender”) and STARTEK, INC., a Delaware corporation, STARTEK USA, INC. , a Colorado corporation, and STARTEK HEALTH SERVICES, INC., a Colorado corporation (each a “Borrower”).

RECITALS

Each Borrower and Lender are parties to a Credit and Security Agreement dated as of February 28, 2012 (as amended from time to time, the “Credit Agreement”). Capitalized terms used in these recitals have the meanings given to them in the Credit Agreement unless otherwise specified.

Each Borrower has requested that certain amendments be made to the Credit Agreement, which Lender is willing to make pursuant to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, it is agreed as follows:

1.Section 8(a). Section 8(a) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

“(a)    Minimum Adjusted EBITDA. Achieve Adjusted EBITDA, measured on a month-end basis, of at least the required amount set forth in the following table for the applicable period set forth opposite thereto:

{Z0030334/1 }

Applicable Amount	Applicable Period
$6,000,000	For the 12-month period ending February 28, 2015
$6,000,000	For the 12-month period ending March 31, 2015
$6,000,000	For the 12-month period ending April 30, 2015
$6,000,000	For the 12-month period ending May 31, 2015
$6,000,000	For the 12-month period ending June 30, 2015
$6,000,000	For the 12-month period ending July 31, 2015
$6,000,000	For the 12-month period ending August 31, 2015
$6,000,000	For the 12-month period ending September 30, 2015
$6,000,000	For the 12-month period ending October 31, 2015
$7,000,000	For the 12-month period ending November 30, 2015
$9,000,000	For the 12-month period ending December 31, 2015

2.Section 8(b). Section 8(b) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

“(b)    Non-Financed Capital Expenditures. Incur or contract to incur Non-Financed Capital Expenditures, measured on a month-end basis, in an amount less than or equal to the applicable amount set forth in the following table for the applicable period set forth opposite thereto:

{Z0030334/1 }    -2-

Applicable Amount	Applicable Period
$20,000,000	For the 12-month period ending February 28, 2015
$20,000,000	For the 12-month period ending March 31, 2015
$20,000,000	For the 12-month period ending April 30, 2015
$20,000,000	For the 12-month period ending May 31, 2015
$20,000,000	For the 12-month period ending June 30, 2015
$20,000,000	For the 12-month period ending July 31, 2015
$20,000,000	For the 12-month period ending August 31, 2015
$22,000,000	For the 12-month period ending September 30, 2015
$22,000,000	For the 12-month period ending October 31, 2015
$22,000,000	For the 12-month period ending November 30, 2015
$22,000,000	For the 12-month period ending December 31, 2015

3.Compliance Certificate. The form of Compliance Certificate attached as Exhibit A to the Credit Agreement is hereby amended and restated in its entirety by the form of Compliance Certificate attached as Exhibit A to this Amendment.

4.No Other Changes. Except as explicitly amended by this Amendment, all of the terms and conditions of the Credit Agreement shall remain in full force and effect and shall apply to any advance or letter of credit thereunder.

5.Conditions Precedent. This Amendment shall be effective when Lender shall have received an executed original hereof, together with each of the following, each in substance and form acceptable to Lender in its sole discretion:

(a)The Acknowledgment and Agreement of Collection Center, Inc. (“Guarantor”) set forth at the end of this Amendment, duly executed by Guarantor.

(b)The Acknowledgment and Agreement of each of StarTek Canada Services, Ltd., StarTek Honduras, SA de CV, StarTek International Limited, StarTek Philippines, Inc. and

{Z0030334/1 }    -3-

Collection Center, Inc. (each a “Subordinated Creditor”) set forth at the end of this Amendment, duly executed by each Subordinated Creditor.

(c)Such other matters as Lender may require.

6.Representations and Warranties. Each Borrower hereby represents and warrants to Lender as follows:

(a)Each Borrower has all requisite power and authority to execute this Amendment and any other agreements or instruments required hereunder and to perform all of its obligations hereunder and thereunder, and each of this Amendment and all such other agreements and instruments has been duly executed and delivered by each Borrower and constitutes the legally valid and binding agreement and obligation of such Person, enforceable against such Person in accordance with its respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally.

(b)The execution, delivery and performance by each Borrower of this Amendment and any other agreements or instruments required hereunder have been duly authorized by all necessary corporate action and do not and will not (i) violate any material provision of federal, state, or local law or regulation applicable to any Borrower, the Governing Documents of such Person, or any order, judgment, or decree of any court or other Governmental Authority binding on such Person, (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any Material Contract of any Borrower except to the extent that any such conflict, breach or default could not individually or in the aggregate reasonably be expected to cause a Material Adverse Change, (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any assets of any Borrower, other than Permitted Liens, or (iv) require any approval of any Borrower’s interest holders or any approval or consent of any Person under any Material Contract of any Borrower, other than consents or approvals that have been obtained and that are still in force and effect and except, in the case of Material Contracts, for consents or approvals, the failure to obtain could not individually or in the aggregate reasonably be expected to cause a Material Adverse Change.

(c)All of the representations and warranties contained in Exhibit D of the Credit Agreement are correct on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date.

7.References; Affirmation. All references in the Credit Agreement to “this Agreement” shall be deemed to refer to the Credit Agreement as amended hereby; and any and all references in the Loan Documents to the Credit Agreement shall be deemed to refer to the Credit Agreement as amended hereby. The existing Loan Documents, except as amended by this Amendment or, as applicable, as amended (or amended and restated) by a separate agreement or instrument in connection herewith, shall remain in full force and effect, and each of them is hereby ratified and confirmed by each Borrower and Lender. Each Borrower and Lender intend that this Amendment shall not in any manner (a) constitute the refinancing, refunding, payment or extinguishment of the Obligations evidenced by the existing Loan Documents; (b) be deemed

{Z0030334/1 }    -4-

to evidence a novation of the outstanding balance of the Obligations; or (c) affect, replace, impair, or extinguish the creation, attachment, perfection or priority of the Liens on the Collateral granted pursuant to the Credit Agreement or any of the other Loan Documents evidencing, governing or creating a Lien on the Collateral. Each Borrower hereby ratifies and reaffirms any and all grants of the Liens to Lender on the Collateral as security for the Obligations, and acknowledges and confirms that the grants of the Liens to Lender on the Collateral: (i) represent continuing Liens on all of the Collateral, (ii) secure all of the Obligations, and (iii) represent valid first Liens on all of the Collateral, subject only to the Permitted Liens. The Credit Agreement, as amended by this Amendment, will be construed as one agreement.

8.No Waiver. The execution of this Amendment and the acceptance of all other agreements and instruments related hereto shall not be deemed to be a waiver of any Default or Event of Defaultunder the Credit Agreement or a waiver of any breach, default or event of default under any Loan Document or other document held by Lender, whether or not known to Lender and whether or not existing on the date of this Amendment.

9.Release. Each Borrower, and each of Guarantor and each Subordinated Creditor by signing the Acknowledgments and Agreements of Guarantor and Subordinated Creditors set forth below,hereby absolutely and unconditionally releases and forever discharges Lender, and any and all participants, parent entities, subsidiary entities, affiliated entities, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents, attorneys and employees of any of the foregoing, from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which any Borrower, Guarantor or Subordinated Creditorhas had, now has or has made claim to have against any such Person for or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this Amendment, whether such claims, demands and causes of action are matured or unmatured or known or unknown.

10.Costs and Expenses. Each Borrower hereby reaffirms its joint and several agreement under the Credit Agreement to pay or reimburse Lender on demand for all costs and expenses incurred by Lender in connection with the Loan Documents, including without limitation all reasonable fees and disbursements of legal counsel. Without limiting the generality of the foregoing, each Borrower specifically agrees to pay all fees and disbursements of counsel to Lender for the services performed by such counsel in connection with the preparation of this Amendment and the documents and instruments incidental hereto. Each Borrower hereby agrees that Lender may, at any time or from time to time in its sole discretion and without further authorization by any Borrower, make a loan to any Borrower under the Credit Agreement, or apply the proceeds of any loan, for the purpose of paying any such fees, disbursements, costs and expenses.

11.Captions and Headings. The titles, captions and headings in this Amendment are for the purposes of reference only and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment.

{Z0030334/1 }    -5-

12.Miscellaneous. This Amendment and the Acknowledgments and Agreements of Guarantor and Subordinated Creditors may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same agreement. Delivery of an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Amendment but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

13.Joint and Several Liability. Each Borrower agrees that it is jointly and severally liable for, and absolutely and unconditionally guarantees to Lender the prompt performance of, all Obligations under this Amendment.

{Z0030334/1 }    -6-

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

WELLS FARGO BANK, NATIONAL ASSOCIATION By: /s/ Karen S. Kenney Name: Karen S. Kenney Title: Authorized Signatory STARTEK, INC. By: /s/ Lisa Bullington-Weaver Name: Lisa Bullington-Weaver Title: Senior Vice President and Chief Financial Officer STARTEK USA, INC. By: /s/ Lisa Bullington-Weaver Name: Lisa Bullington-Weaver Title: Senior Vice President and Chief Financial Officer STARTEK HEALTH SERVICES, INC. By: /s/ Lisa Bullington-Weaver Name: Lisa Bullington-Weaver Title: Senior Vice President and Chief Financial Officer

{Z0030334/1 }    Signature Page to Ninth Amendment

to Credit and Security Agreement

ACKNOWLEDGMENT AND AGREEMENT OF GUARANTOR

The undersigned, a guarantor of StarTek, Inc. (“StarTek”), StarTek USA, Inc. (“StarTek USA”) and StarTek Health Services, Inc. (“StarTek Health Services”) to Wells Fargo Bank, National Association ( “Lender”), pursuant to a Guaranty dated as of November 12, 2014 (the “Guaranty”), hereby (i) acknowledges receipt of the foregoing Amendment; (ii) consents to the terms (including without limitation the release set forth in Paragraph 9 of the Amendment) and execution thereof; (iii) reaffirms all obligations to Lender pursuant to the terms of the Guaranty; and (iv)  acknowledges that Lender may amend, restate, extend, renew or otherwise modify the Loan Documents (other than the Guaranty and the Security Agreement dated as of November 12, 2014 executed by Guarantor in favor of Lender) and any indebtedness or agreement of any Borrower, or enter into any agreement or extend additional or other credit accommodations, without notifying or obtaining the consent of the undersigned and without impairing the obligations of the undersigned under theGuaranty.

COLLECTION CENTER, INC.

By:     /s/ Lisa Bullington-Weaver

Name: Lisa Bullington-Weaver

Title:    Treasurer

{Z0030334/1 }    Acknowledgement and Agreement of

Guarantor to Ninth Amendment

to Credit and Security Agreement

ACKNOWLEDGMENT AND AGREEMENT OF SUBORDINATED CREDITORS

The undersigned, eacha subordinated creditor of StarTek, Inc. (“StarTek”), StarTek USA, Inc. (“StarTek USA”) and StarTek Health Services, Inc. (“StarTek Health Services”) to Wells Fargo Bank, National Association ( “Lender”), pursuant to an Intercompany Subordination Agreement dated as of February 28, 2012 (the “Intercompany Subordination Agreement”), hereby (i) acknowledges receipt of the foregoing Amendment; (ii) consents to the terms (including without limitation the release set forth in Paragraph 9 of the Amendment) and execution thereof; (iii) reaffirms all obligations to Lender pursuant to the terms of the Intercompany Subordination Agreement; (iv) acknowledges that effective September 30, 2014, all references in the Intercompany Subordination Agreement to: (a) “Borrower” shall be deemed to refer to any of StarTek, StarTek USA and StarTek Health Services, (b) “Borrowers” shall be deemed to refer to StarTek, StarTek USA and StarTek Health Services, collectively, (c) “Company” shall be deemed to refer to any of StarTek, StarTek USA, StarTek Health Services, StarTek Canada Services, Ltd. (“StarTek Canada”), StarTek Honduras, SA de CV (“StarTek Honduras”), StarTek International Limited (“StarTek International”), StarTek Philippines, Inc. (“StarTek Philippines”) and Collection Center, Inc. (“Collection Center”), and (d) “Companies” shall be deemed to refer to StarTek, StarTek USA, StarTek Health Services, StarTek Canada, StarTek Honduras, StarTek International, StarTek Philippines and Collection Center, collectively, and (v) acknowledges that Lender may amend, restate, extend, renew or otherwise modify the Loan Documents (other than the Intercompany Subordination Agreement) and any indebtedness or agreement of any Borrower, or enter into any agreement or extend additional or other credit accommodations, without notifying or obtaining the consent of the undersigned and without impairing the obligations of the undersigned under theIntercompany Subordination Agreement.

{Z0030334/1 }    Acknowledgement and Agreement of

Subordinated Creditors to Ninth Amendment

to Credit and Security Agreement

STARTEK CANADA SERVICES, LTD. By: /s/ Lisa Bullington-Weaver Name: Lisa Bullington-Weaver Title: Senior Vice President and Chief Financial Officer	STARTEK INTERNATIONAL LIMITED By: /s/ Lisa Bullington-Weaver Name: Lisa Bullington-Weaver Title: Senior Vice President and Chief Financial Officer
STARTEK HONDURAS, SA de CV By: /s/ Chad A. Carlson Name: Chad A. Carlson Title: President and Chief Executive Officer	STARTEK PHILIPPINES, INC. By: /s/ Chad A. Carlson Name: Chad A. Carlson Title: President and Chief Executive Officer
COLLECTION CENTER, INC. By: /s/ Lisa Bullington-Weaver Name: Lisa Bullington-Weaver Title: Treasurer

{Z0030334/1 }    Acknowledgement and Agreement of

Subordinated Creditors to Ninth Amendment

to Credit and Security Agreement

EXHIBIT A

TO CREDIT AND SECURITY AGREEMENT

FORM OF COMPLIANCE CERTIFICATE

[on Borrower’s letterhead]

To:    Wells Fargo Bank, National Association

MAC 7300-210

1740 Broadway

Denver, CO 80274

Attn: Karen Kenney

Re:    Compliance Certificate dated , 20__

Ladies and Gentlemen:

Reference is made to that certain Credit and Security Agreement (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) dated as of February 28, 2012, by and among WELLS FARGO BANK, NATIONAL ASSOCIATION, (“Lender”), and STARTEK, INC., STARTEK USA, INC. and STARTEK HEALTH SERVICES, INC. (each a “Borrower” and collectively, the “Borrowers”). Capitalized terms used in this Compliance Certificate have the meanings set forth in the Credit Agreement unless specifically defined herein.

Pursuant to Schedule 6.1 of the Credit Agreement, the undersigned chief financial officer of each of StarTek, Inc., StarTek USA, Inc. and StarTek Health Services, Inc. hereby certifies that:

1.    The financial information of each Borrower and its Subsidiaries furnished to Lender pursuant to Section 6.1 of the Credit Agreement has been prepared in accordance with GAAP (except for year-end adjustments and the lack of footnotes), and fairly presents in all material respects the financial condition of each Borrower and its Subsidiaries.

2.    Such officer has reviewed the terms of the Credit Agreement and has made, or caused to be made under his/her supervision, a review in reasonable detail of the transactions and condition of each Borrower and its Subsidiaries during the accounting period covered by the financial statements delivered pursuant to Schedule 6.1 of the Credit Agreement.

3.    Such review has not disclosed the existence on and as of the date hereof, and the undersigned does not have knowledge of the existence as of the date hereof, of any event or condition that constitutes a Default or Event of Default.

{Z0030334/1 }    Exhibit A - 1

4.    The representations and warranties of each Borrower and its Subsidiaries set forth in the Credit Agreement and the other Loan Documents are true and correct in all material respects on and as of the date hereof (except to the extent they relate to a specified date).

5.    Each Borrower and its Subsidiaries are in compliance with the applicable covenants contained in Section 8 of the Credit Agreement as demonstrated on Schedule 1 hereof.

6.    The Citibank Supplier Agreement has not been amended, supplemented, modified or terminated without Lender’s prior written consent.

IN WITNESS WHEREOF, this Compliance Certificate is executed by the undersigned this _____ day of _______________, 201__.

STARTEK, INC.

By:     

Name:    
Title:    Chief Financial Officer

STARTEK USA, INC.

By:     

Name:    
Title:    Chief Financial Officer

STARTEK HEALTH SERVICES, INC.

By:     

Name:    
Title:    Chief Financial Officer

{Z0030334/1 }    Exhibit A - 2

SCHEDULE 1 TO COMPLIANCE CERTIFICATE

1.    Minimum Adjusted EBITDA.

Borrowers’ and their Subsidiaries’ Adjusted EBITDA, measured on a month-end basis, for the [__] month period ending _________, 201__ is $___________, which [does/does not] satisfy the minimum Adjusted EBITDA requirement set forth in Section 8 of the Credit Agreement (and copied below) for the corresponding period.

Applicable Amount	Applicable Period
$6,000,000	For the 12-month period ending February 28, 2015
$6,000,000	For the 12-month period ending March 31, 2015
$6,000,000	For the 12-month period ending April 30, 2015
$6,000,000	For the 12-month period ending May 31, 2015
$6,000,000	For the 12-month period ending June 30, 2015
$6,000,000	For the 12-month period ending July 31, 2015
$6,000,000	For the 12-month period ending August 31, 2015
$6,000,000	For the 12-month period ending September 30, 2015
$6,000,000	For the 12-month period ending October 31, 2015
$7,000,000	For the 12-month period ending November 30, 2015
$9,000,000	For the 12-month period ending December 31, 2015

2.    Non-Financed Capital Expenditures.

Borrowers’ and their Subsidiaries’ Non-Financed Capital Expenditures, measured on a month-end basis, for the [__] month period ending _________, 201__ were $___________, which [is/is not] an amount less than or equal to the applicable amount

{Z0030334/1 }    Exhibit A – Schedule 1-1

set forth in Section 8 of the Credit Agreement (and copied below) for the corresponding period.

Applicable Amount	Applicable Period
$20,000,000	For the 12-month period ending February 28, 2015
$20,000,000	For the 12-month period ending March 31, 2015
$20,000,000	For the 12-month period ending April 30, 2015
$20,000,000	For the 12-month period ending May 31, 2015
$20,000,000	For the 12-month period ending June 30, 2015
$20,000,000	For the 12-month period ending July 31, 2015
$20,000,000	For the 12-month period ending August 31, 2015
$22,000,000	For the 12-month period ending September 30, 2015
$22,000,000	For the 12-month period ending October 31, 2015
$22,000,000	For the 12-month period ending November 30, 2015
$22,000,000	For the 12-month period ending December 31, 2015

3.    Fixed Charge Coverage Ratio Calculation; Applicable Interest Rate Margin.

Borrowers’ and their Subsidiaries’ Fixed Charge Coverage Ratio, measured on a trailing twelve-month basis for the month ended [______________, 201_], was [___]:1.0, which means that as of the date of determination, the Interest Rate Margin is as set forth in Level [I/II] of the following table:

{Z0030334/1 }    Exhibit A – Schedule 1-2

Level	Fixed Charge Coverage RatioCalculation	Interest Rate Margin
I	If the Fixed Charge Coverage Ratio is less 1.5:1.0	3%
II	If the Fixed Charge Coverage Ratio is equal to or greater than 1.5:1.0	2.50%

4.    Citibank Supplier Agreement.

The Citibank Supplier Agreement [has/has not] been amended, supplemented, modified or terminated without Lender’s prior written consent. [Any applicable amendments, supplements, modifications or terminations are described as follows:]

{Z0030334/1 }    Exhibit A – Schedule 1-3

EX-10.2

STARTEK, INC.

2015 EXECUTIVE INCENTIVE PLAN

1.0 PURPOSE

1.1 The 2015 Executive Incentive Bonus Plan (“Plan”) is established to incent and reward eligible Participants (defined in Section 2.3) for performance towards achieving defined Business Targets for the current fiscal year.

2.0 DEFINITIONS

2.1 “Company” means STARTEK, Inc. and its wholly owned operating subsidiaries.

2.2 “Compensation Committee” means the compensation committee of the board of directors of STARTEK, Inc.

2.3 “Participant” means the Senior Leadership Team consisting of the CEO and the direct reports to the CEO as identified in Appendix C.

2.4 “Plan Year” means January 1, 2015 through December 31, 2015, inclusive.

2.5 “Business Targets” are the measurements of the Company’s performance established for the Plan Year by the Company’s executive management and Compensation Committee as described in Section 4.1 below.

2.6 “Incentive Target Eligibility” is a percentage that is determined by a Participant’s position level, as shown in Appendix B under the column “Maximum % of Base Salary”.

2.7 “Business Targets Eligibility” is a percentage that is calculated by multiplying a Participant’s Bonus Eligibility by the applicable Business Target percentage listed in Appendix B.

2.8 “Business Targets Achievement” is the percentage by which Business Targets are achieved as determined by the applicable table in Appendix A or Appendix B.

2.9 “Base Salary” is the amount of annual gross base salary, prorated based on plan entry date and/or pay changes during the plan year, for which an incentive award is calculated.

3.0 PARTICIPATION ELIGIBILITY

3.1 Job Level: See eligibility list for 2015 in Appendix C.

3.2 Entrance Date: Participants must be classified in an eligible position before October 1, 2015 to participate in the 2015 Executive Annual Incentive Plan.

3.3 New Hires/Promotions: Eligibility for new hires or promotions in an eligible position begins the first day of the month following hire or promotion date. New Hires or promotions on or after October 1, 2015 will be eligible to participate in the plan beginning January 1.

4.0 MEASUREMENT CRITERION

4.1 Incentive earnings under the Plan are based on Business Targets.

(a) The Business Targets are established for the Plan Year by the Company’s Compensation Committee. Payout for achieving Business Targets is scaled depending on the Company’s performance during the Plan Year versus the Business Targets per the matrix in Appendix A or Appendix B. Business Targets are based on business objectives, Revenue and EBITDA for the Company.

(b) Business Target Achievement must reach at least the minimum threshold per the payout matrix to earn any payout based on achieving Business Targets to be earned; otherwise the payout is zero.

5.0 PAYMENT FROM THE PLAN

5.1 Incentive awards (if any) are earned after the 4^th quarter close of the Company’s financial books. Earned incentive awards are subject to approval by the Company’s Compensation Committee.

5.2 Incentives earned for the Plan Year are paid as soon as administratively possible after approval in the following calendar year.

5.3 The amount of a Participant’s Individual incentive payout, if any, equals the product of the Participant’s Base Salary(prorated based on plan entry date and/or pay changes during the plan year), the Participant’s Individual Target Eligibility and the Business Targets Achievement.

5.4 Incentive payout, if any, is made to a Participant as a lump sum, less required payroll taxes and withholdings. Participants have the option to have their incentive bonus award

paid out in stock options or a combination of stock options and/or cash. The election as to form of payout shall be at the time that payouts are certified. Any stock options issued in settlement of incentive payouts shall be fully vested at the time of grant, shall have a term of ten years from the date of grant and shall have an exercise price equal to the closing price of the Company’s common stock on the date of grant. The number of shares subject to the stock option shall be determined by dividing the amount of the incentive payout to be paid in the form of stock options, divided by the Black-Scholes value of a share of the Company’s common stock on the date of grant.

5.5 In order to earn an incentive payment from the Plan, a Participant must also be in “active” status on the payroll of the Company or one of its wholly-owned operating subsidiaries at the time the incentive payments are made unless otherwise provided in any written contract with the Participant. (See Partial-Year Participant Eligibility 6.2.b)

6.0 PARTIAL-YEAR PARTICIPANT ELIGIBILITY

6.1 An employee who becomes a Participant during the Plan Year may participate in the Plan on a pro rata basis. The amount of base salary earned by such employee during the Plan year after first becoming a Participant shall be the base salary earnings used to calculate any incentive payments.

6.2 If a Participant’s employment with the Company or any of its wholly-owned operating subsidiaries terminates during the Plan Year then (s)he ceases to be a Participant on the date employment is terminated. In this event, an incentive will neither be earned nor paid unless otherwise provided in any written contract with the Participant.

(a) If a Participant changes his or her position within the Company or any of its wholly-owned operating subsidiaries during the Plan Year such that (s)he is no longer a Participant, then (s)he ceases to be a Participant on the date of such change, in which case a prorated bonus would be earned through the date of such change, and be subject to Section 5.0.

(b) If a Participant is terminated from the Company or any of its wholly-owned operating subsidiaries before the end of the Plan Year or before earned incentive payments are made due to a Position Elimination as a result of a Change in Control of the Company, any earned incentive awards will be paid on a pro rata basis. Such payment will be paid in accordance with the same timeline as other Plan Participants are paid.

Participants on approved paid disability leave of absence during the Plan Year are not eligible to earn incentive awards for the period of time to the nearest whole month of the disability leave of absence. Earned awards during the Plan Year will be prorated for the number of whole months of active employment and participation in the Plan.

7.0 PROMOTIONS WITHIN THE PLAN YEAR

7.1 Promotions during the Plan Year will be handled as follows:

(c) Bonus calculations will be prorated based on the period of time (rounded to the nearest whole month) in each position level and the prorated salary for the same period of time for each position held.    

8.0 PLAN APPROVALS

8.1 This Plan is subject to approval by the Compensation Committee and is effective only for the Plan Year noted above. There is no assurance that this Plan will be renewed or any similar plan will be adopted in the future.

9.0 CHANGEABILITY

9.1 The Compensation Committee reserves the right to change, suspend or eliminate this Plan, in whole or in part, at any time, with or without notice to Participants. Furthermore, the Compensation Committee retains discretion to adjust payouts and calculation of performance metrics as determined in its sole discretion.

FORFEITURE OF AWARDS:

Any Participant who may have earned an incentive under the Plan but whose overall performance does not meet or exceed performance expectations at the time of payment of the earned incentive awards is not eligible to receive payment under the Plan.

Any Participant who manipulates or attempts to manipulate the Plan or any components of performance measurements for personal benefit will forfeit any potentially earned awards and is subject to disciplinary action up to and including termination of employment.

Participant Signature:____________________________________________________________

Printed Name:___________________________________Date:__________________________

By my signature above, I understand and accept the terms of this 2015 Executive Incentive Plan:

APPENDIX A:

BUSINESS TARGETS MATRIX

STARTEK, Inc. Executive Incentive Plan

For Year Ended December 31, 2015

	2015			2015
	Revenue (millions) – 45%			Adjusted EBITDA (millions) – 30%
	Target	% Achieved	% Payout	Target	% Achieved	% Payout
		< 94%	0.00%		<85%	0.00%
	$267.9	94.00%	70.00%	$12.8	85.00%	50.00%
	$273.6	96.00%	80.00%	$13.1	87.50%	60.00%
	$279.3	98.00%	90.00%	$13.5	90.00%	70.00%
	$285.00	100.00%	100.00%	$13.8	92.00%	75.00%
	$292.1	102.50%	105.00%	$14.1	94.00%	80.00%
	$299.3	105.00%	110.00%	$14.4	96.00%	85.00%
	$313.5	110.00%	120.00%	$14.7	98.00%	90.00%
		≥ 110%	120.00%	$15.00	100.00%	100.00%
				$15.8	105.00%	105.00%
				$16.1	107.50%	107.50%
				$16.5	110.00%	110.00%
				$16.9	112.50%	112.50%
				$17.3	115.00%	115.00%
				$17.6	117.50%	117.50%
				$18.0	120.00%	120.00%
					≥120%	120.00%
2015 Objectives – 25%
Objective	Description						Goal	Weighting
#1	IT Cost/Seat						$185.0	5.0%
#2	> 10 New Logos with > $25M ACV						NA	10.0%
#3	> $5M billed in new or expanded service offerings (New or expanding service offerings includes Php daytime seats, back office, 1st or 3rd party Receivables Management, Ideal Dialogue, RNOC and SRT Connect)						$5.0	10.0%

APPENDIX A - continued:

BUSINESS TARGETS MATRIX

STARTEK, Inc. Executive Incentive Plan

For Year Ended December 31, 2015

2015 plan doubles long-term incentive participation percentages if both REVENUE and EBITDA goals are achieved.
Level	Current LTI%*	Revenue/EBITDA Achievement %
CEO	50%	100%
Senior Leadership Members	30%	60%
* Long-Term Incentive (LTI) provides stock option grants that are tied to the annual earned cash bonus each year. The value is derived by multiplying the actual earned cash bonus by the LTI participation percentage. This cash value is converted to option shares using a Black-Scholes calculation. Options granted have a three year cliff vesting period.

Appendix B

2015 STARTEK INC. EXECUTIVE INCENTIVE PLAN ELIGIBLITY MATRIX

2015 Senior Leadership Team Targets
LEVEL	Maximum % of Base	Business Targets
	Salary
		Objectives 1-3 **	EBITDA	Revenue
President and CEO	100%	25%	30%	45%
SVP Chief Financial Officer	75%	25%	30%	45%
Chief Information Officer SVP Global Human Resources SVP GM Global Operations	60%	25%	30%	45%

Appendix C

2015 STARTEK INC. EXECUTIVE INCENTIVE PLAN ELIGIBLITY PARTICIPANTS

2015 Executive Incentive Bonus Plan Eligibility List
EE #	Lawson Name	Lawson Title	Lawson Hire Date	2015 EIB Plan Entry Date
1008531	Carlson, Chad A.	President and CEO	6/14/2010	1/1/2015
10716	Bullington-Weaver, Lisa A.	SVP Chief Financial Officer	10/31/2011	1/1/2015
20126992	Dwivedi, Kamalesh	Chief Information Officer	10/1/2014	1/1/2015
20107733	Kirksey, Jaymes	SVP Global Human Resources	2/4/2013	1/1/2015
3444	Leach, Rodney A.	SVP GM Global Operations	12/7/2010	1/1/2015
20119542	Martino, Peter F.	SVP GM Global Operations	1/20/2014	1/1/2015

EX-10.3

STARTEK, INC.

[Date]

[Name of executive]

[Address of executive]

Dear [Executive]:

STARTEK, Inc. (“Company”) is very pleased to offer you, [Name of executive] (“Employee”) employment as [Title]. This letter (“Agreement”) states the complete terms and conditions of your employment with Company. If you agree to these terms and conditions, please initial the bottom of each page and sign at the end of this letter in the spaces indicated.

1.EMPLOYMENT. The Company will employ Employee and Employee shall serve Company in the capacity of [Title].

2.AT-WILL EMPLOYMENT. It is understood and agreed by Company and Employee that this Agreement does not contain any promise or representation concerning the duration of Employee’s employment with Company. Employee specifically acknowledges that his employment with Company is at-will and may be altered or terminated by either Employee or Company at any time, with or without cause and/or with or without notice. The nature, terms or conditions of Employee’s employment with Company cannot be changed by any oral representation, custom, habit or practice, or any other writing. In addition, that the rate of salary, any bonuses, paid time off, other compensation, or vesting schedules are stated in units of years or months or weeks does not alter the at-will nature of the employment, and does not mean and should not be interpreted to mean that Employee is guaranteed employment to the end of any period of time or for any period of time. In the event of conflict between this disclaimer and any other statement, oral or written, present or future, concerning terms and conditions of employment, the at-will relationship confirmed by this disclaimer shall control. This at-will status cannot be altered except in a writing signed by Employee and approved by the Company’s Board of Directors (the “Board of Directors”).

3.DUTIES. Employee shall continue to render exclusive, full-time services to Company as its [Title]. Employee shall perform services under this Agreement primarily working in our Denver Headquarters office, and from time to time at such other locations as is necessary to perform Employee’s duties hereunder. In its sole discretion, Company may change, add to, or eliminate any of Employee’s responsibilities, working conditions and duties. Employee shall devote Employee’s best efforts and full business time, skill and attention to the performance of such duties and responsibilities on behalf of Company.

4.POLICIES AND PROCEDURES. Employee is subject to and shall comply with the policies and procedures of Company; as such policies and procedures may be modified, added to or eliminated from time to time at the sole discretion of Company, except to the extent any such policy or procedure specifically conflicts with the express terms of this Agreement. No written or oral policy or procedure of Company constitutes a contract between Company and Employee.

BASE SALARY. Employee’s initial Base Salary (hereafter defined) shall be $[annual salary] per annum. For all services rendered and to be rendered hereunder, Company shall pay Employee, and Employee shall accept a salary as may fixed by the Company from time to time (“Base Salary”) which will be paid periodically in accordance with normal Company payroll practices and shall be subject to Deductions. The term “Deductions” means such employment taxes, deductions and withholdings as Company is required to make pursuant to law, or by further agreement with the Employee. Employee’s Base Salary shall be subject to periodic review and adjustment by Company.

5.EQUITY. With the approval of the Company’s Board of Directors, the Employee will be awarded approximately [number] non-qualified stock options to purchase shares of the Company’s common stock at a strike price equal to the closing market price on the date of issuance. Awarded options vest three years after issuance.

6.INCENTIVE. Employee may be eligible to participate in Company’s annual Executive Incentive Plan with an earned incentive award potential of [percentage]% of annualized Base Salary upon attainment of the specific level of performance contained within the companies approved bones bonus plan (the “Incentive Potential”) pursuant to the terms, conditions and limitations set forth therein. The Employee’s first year participation will be prorated based on hire date.

7.SALES COMMISSION. Employee is eligible to earn sales commission on invoiced revenue for new statements of work in the CEA (Customer Engagement Agency) and Ideal Dialog business vertical’s. The employee will be provided with; (a) Sales Compensation Plan, (b) Quota and (c) Commission Schedule prior to offer acceptance.

8.OTHER BENEFITS. While employed by Company as provided herein:

(a)Employee Benefits. Employee shall be entitled to all benefits to which other executive officers of Company are entitled, on terms comparable thereto, including, without limitation, participation in pension and profit sharing plans, 401(k) plan, group insurance policies and plans, medical, health, vision, and disability insurance policies and plans, and the like, which may be maintained by Company for the benefit of its executives. Company reserves the right to alter, amend, or eliminate any of such benefits from time to time at Company’s discretion.

(b)Expense Reimbursement. Company shall reimburse Employee for direct and reasonable out-of-pocket expenses incurred by Employee in connection with the performance of Employee’s duties hereunder, according to the policies of Company which Company may, in its sole discretion, change from time to time.

9.CONFIDENTIAL INFORMATION, RIGHTS AND DUTIES.

(a)Proprietary Information. Employee agrees to execute and abide by Company’s Proprietary Information and Inventions Agreement (the “Proprietary Information Agreement”), attached hereto as Exhibit A.

(b)Exclusive Property. Employee agrees that all Company-related business procured by Employee, and all Company-related business opportunities and plans made known to Employee while employed by Company, are and shall remain the permanent and exclusive property of Company.

(c)Non-Competition and Non-Solicitation. Employee agrees that for a period of 12 months following his last day of employment with Company, he shall continue to comply with the non-competition and non-solicitation obligations set forth in the Proprietary Information Agreement. The employee agrees not to disclose, or use for the benefit of StarTek, any confidential or proprietary information belonging to any prior employer(s) that otherwise has not been made public and further acknowledge that the StarTek has specifically instructed you not to disclose or use such confidential or proprietary information. You also agree not to directly or indirectly solicit and customers or employees of any former employer(s).

(d)Employment Agreement. StarTek acknowledges that you are a party to an employment agreement with your previous employer which may impose certain restrictions on your activities. As a condition of your employment, and as specifically limited by your employment agreement you agree not to: 1) disclose, or use for the benefit of StarTek, any confidential or proprietary information belonging to any prior employer(s) that otherwise has not been made public and further acknowledge that StarTek has specifically instructed you not to disclose or use such confidential or proprietary information and 2) directly or indirectly solicit and customers or employees of any former employer(s). In the event litigation should be filed by your previous employer to enforce the terms of the restrictive covenants in your employment agreement, then the parties agree that StarTek will provide a defense to Employee, including all attorneys’ fees. Employee understands and agrees that StarTek’s obligations to provide such a defense is contingent upon employee honoring all restrictive covenants other than any non-competition provision.

10.TERMINATION. Employee and Company each acknowledge that either party has the right to terminate Employee’s employment with Company at any time for any reason whatsoever, with or without cause or advance notice pursuant to the following:

(a)    Termination by Death or Disability. Subject to applicable state or federal law, in the event that Employee shall die during his employment hereunder or become permanently disabled, as evidenced by notice to Company and Employee’s inability to carry out his job responsibilities for a continuous period of more than six months, Employee’s employment and Company’s obligation to make payments hereunder shall terminate on the date of his death, or the date upon which, in the sole determination of the Board of Directors, Employee has become permanently disabled, except that Company shall pay Employee any salary earned but unpaid prior to termination, any benefits accrued prior to termination, all accrued but unused vacation, and any business expenses that were incurred but not reimbursed as of the date of termination (the “Accrued Compensation”). Vesting of all options shall cease on the date of such termination.

(b)    Voluntary Resignation by Employee. In the event that Employee voluntarily terminates his employment with Company, Company’s obligation to make payments hereunder shall cease upon such termination, except Company shall pay Employee all Accrued Compensation. Vesting of all options shall cease on the date of such termination.

(c)    Termination for Cause. In the event that Employee is terminated by Company for Cause (as defined below), Company’s obligation to make payments hereunder shall cease upon the date of receipt by Employee of written notice of such termination, except Company shall pay Employee all Accrued Compensation. Vesting of all options shall cease on the termination date.

(a)Termination by the Company without Cause. In the event Employee’s employment is terminated without Cause (as defined herein), or as a result of a merger, consolidation or other Change in Control (as that term is defined in the 2008 StarTek Equity Incentive Plan) and provided Employee executes a release in the form attached as Exhibit B (“Release”) and written a acknowledgment of Employee’s continuing obligations under the Proprietary Information Agreement, then in addition to payment of the Accrued Compensation, Employee shall be entitled to receive (i) the equivalent of 6 months of Employee’s annual Base Salary as in effect immediately prior to the termination date, payable on the same basis and at the same time as previously paid and subject to Deductions, commencing on the first regularly scheduled pay date following the Effective Date of the Release; and (ii) provided that Employee is eligible for and timely elects continuation of health insurance pursuant to COBRA, for a period of 6 months Company shall also reimburse Employee for a portion of the cost of Employee’s COBRA premiums that is equal to, and does not exceed, Company’s monthly contribution towards Employee’s health benefit premiums as of the date of termination provided, however, that Company’s obligation to pay Employee’s COBRA premiums will cease immediately in the event Employee becomes eligible for group health insurance during the 6 month period, and Employee hereby agrees to promptly notify Company if Employee becomes eligible to be covered by group health insurance in such event ((i) and (ii) collectively, the “Severance Benefits”).

(b)Definition of Cause. For purposes of this Agreement, “Cause” means (i) Employee’s incompetence or failure or refusal to perform satisfactorily any duties reasonably required of the Employee by Company; (ii) Employee’s violation of any law, rule or regulation (other than traffic violations, misdemeanors or similar offenses) or cease-and-desist order, court order, judgment, regulatory directive or agreement; (iii) the commission or omission of or engaging in any act or practice which constitutes a material breach of the Employee’s fiduciary duty to Company, involves personal dishonesty on the part of the Employee or demonstrates a willful or continuing disregard for the best interests of Company; or (iv) the Employee’s engaging in dishonorable or disruptive behavior, practices or acts which would be reasonably expected to harm or bring disrepute to Company, its business or any of its customers, employees or vendors.

11.CODE SECTION 409A COMPLIANCE. Severance Benefits pursuant to Section 10(d) above, to the extent of payments made from the termination date through March 15 of the calendar year following such termination, are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus payable pursuant to the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations; to the extent such payments are made following said March 15, they are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary termination from service and payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by said provision, with any excess amount being regarded as subject to the distribution requirements of Section 409A(a)(2)(A) of the Internal Revenue Code of 1986, as amended (the “Code”), including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payment to Employee be delayed until 6 months after Employee’s separation from service if Employee is a “specified employee” within the meaning of the aforesaid section of the Code at the time of such separation from service.

12.MISCELLANEOUS.

(a)    Taxes. Employee agrees to be responsible for the payment of any taxes due on any and all compensation, stock option, or benefit provided by Company pursuant to this Agreement. Employee agrees to indemnify Company and hold Company harmless from any and all claims or penalties asserted against Company for any failure to pay taxes due on any compensation, stock option, or benefit provided by Company pursuant to this Agreement. Employee expressly acknowledges that Company has not made, nor herein makes, any representation about the tax consequences of any consideration provided by Company to Employee pursuant to this Agreement.

(b)    Modification/Waiver. This Agreement may not be amended, modified, superseded, canceled, renewed or expanded, or any terms or covenants hereof waived, except by a writing executed by each of the parties hereto or, in the case of a waiver, by the party waiving compliance. Failure of any party at any time or times to require performance of any provision hereof shall in no manner affect such Party’s right at a later time to enforce the same. No waiver by a party of a breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances shall be deemed to be or construed as a further or continuing waiver of agreement contained in the Agreement.

(c)    Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of any successor or assignee of the business of Company. This Agreement shall not be assignable by the Employee.

(a)Notices. All notices given hereunder shall be given by certified mail, addressed, or delivered by hand, to the other party at the address as set forth herein for such party, or at any other address hereafter furnished by notice given in like manner. Employee promptly shall notify Company of any change in Employee’s address. Each notice shall be dated the date of its mailing or delivery and shall be deemed given, delivered or completed on such date.

(b)Governing Law; Personal Jurisdiction and Venue. This Agreement and all disputes relating to this Agreement shall be governed in all respects by the laws of the State of Colorado as such laws are applied to agreements between Colorado residents entered into and performed entirely in Colorado. The Parties acknowledge that this Agreement constitutes the minimum contacts to establish personal jurisdiction in Colorado and agree to Colorado court’s exercise of personal jurisdiction.

(c)Entire Agreement. This Agreement together with the Exhibits A and B attached hereto, set forth the entire agreement and understanding of the parties hereto with regard to the employment of the Employee by Company and supersede any and all prior agreements, arrangements and understandings, written or oral, pertaining to the subject matter hereof. No representation, promise or inducement relating to the subject matter hereof has been made to a party that is not embodied in these Agreements, and no party shall be bound by or liable for any alleged representation, promise or inducement not so set forth.

We look forward to having you continue to work with us at StarTek, Inc. If you wish to accept this offer under the terms and conditions described above, please sign and date this letter and the attached Proprietary Information Agreement and return them to me by [Acceptance date]. If you have any questions about the terms of this offer, please do not hesitate to call me to discuss our offer at your earliest convenience.

STARTEK, INC.

By:    _______________________________

Its:    Senior Vice President, Global Human Resources

I have read this offer and I understand and I accept its terms.

_______________________________

[Name of executive]

Date: ________________

EXHIBIT A

MANAGER, EXECUTIVE PERSONNEL OR ASSISTANTS’

PROPRIETARY INFORMATION, INVENTIONS,

NON-COMPETITION, AND NON-SOLICITATION AGREEMENT

This Manager, Executive Personnel or Assistants’ Proprietary Information, Inventions, Non-competition, and Non-solicitation Agreement (“Agreement”) is made in consideration for my employment or continued employment by StarTek, Inc.or its subsidiaries or affiliates (the “Company”), and the compensation now and hereafter paid to me. I hereby agree as follows:

1.NONDISCLOSURE.

1.1Recognition of Company’s Rights; Nondisclosure. At all times during my employment and thereafter, I will hold in strictest confidence and will not disclose, use, lecture upon or publish any of the Company’s Proprietary Information (defined below), except as such disclosure, use or publication may be required in connection with my work for the Company, or unless an officer of the Company expressly authorizes such in writing. I will obtain Company’s written approval before publishing or submitting for publication any material (written, verbal, or otherwise) that relates to my work at Company and/or incorporates any Proprietary Information. I hereby assign to the Company any rights I may have or acquire in such Proprietary Information and recognize that all Proprietary Information shall be the sole property of the Company and its assigns.

1.2Proprietary Information. The term “Proprietary Information” shall mean any and all confidential and/or proprietary knowledge, data or information of the Company. By way of illustration but not limitation, Proprietary Information includes (a) trade secrets, inventions, mask works, ideas, processes, formulas, source and object codes, data, programs, other works of authorship, know-how, improvements, discoveries, developments, designs and techniques (hereinafter collectively referred to as “Inventions”); and (b) information regarding plans for research, development, new products, marketing and selling, business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers; and (c) information regarding the skills and compensation of other employees of the Company. Notwithstanding the foregoing, it is understood that, at all such times, I am free to use information which is generally known in the trade or industry, which is not gained as result of a breach of this Agreement, and my own, skill, knowledge, know-how and experience to whatever extent and in whichever way I wish.

1.3Third Party Information. I understand, in addition, that the Company has received and in the future will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the term of my employment and thereafter, I will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than Company personnel who need to know such information in connection with their work for the Company) or use, except in connection with my work for the Company, Third Party Information unless expressly authorized by an officer of the Company in writing.

1.4No Improper Use of Information of Prior Employers and Others. During my employment by the Company I will not improperly use or disclose any confidential information or trade secrets, if any, of any former employer or any other person to whom I have an obligation of confidentiality, and I will not bring onto the premises of the Company any unpublished documents or any property belonging to any former employer or any other person to whom I have an obligation of confidentiality unless consented to in writing by that former employer or person. I will use in the performance of my duties only information which is generally known and used by persons with training and experience comparable to my own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company.

2.ASSIGNMENT OF INVENTIONS.

2.1Proprietary Rights. The term “Proprietary Rights” shall mean all trade secret, patent, copyright, mask work and other intellectual property rights throughout the world.

2.2Prior Inventions. Inventions, if any, patented or unpatented, which I made prior to the commencement of my employment with the Company are excluded from the scope of this Agreement. To preclude any possible uncertainty, I have set forth on Schedule A (Previous Inventions) attached hereto a complete list of all Inventions that I have, alone or jointly with others, conceived, developed or reduced to practice or caused to be conceived, developed or reduced to practice prior to the commencement of my employment with the Company, that I consider to be my property or the property of third parties and that I wish to have excluded from the scope of this Agreement (collectively referred to as “Prior Inventions”). If disclosure of any such Prior Invention would cause me to violate any prior confidentiality agreement, I understand that I am not to list such Prior Inventions in Schedule A but am only to disclose a cursory name for each such invention, a listing of the party(ies) to whom it belongs and the fact that full disclosure as to such inventions has not been made for that reason. A space is provided on Schedule A for such purpose. If no such disclosure is attached, I represent that there are no Prior Inventions. If, in the course of my employment with the Company, I incorporate a Prior Invention into a Company product, process or machine, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with rights to sublicense through multiple tiers of sublicensees) to make, have made, modify, use and sell such Prior Invention. Notwithstanding the foregoing, I agree that I will not incorporate, or permit to be incorporated, Prior Inventions in any Company Inventions without the Company’s prior written consent.

2.3Assignment of Inventions. Subject to Sections 2.4, and 2.6, I hereby assign and agree to assign in the future (when any such Inventions or Proprietary Rights are first reduced to practice or first fixed in a tangible medium, as applicable) to the Company all my right, title and interest in and to any and all Inventions (and all Proprietary Rights with respect thereto) whether or not patentable or registrable under copyright or similar statutes, made or conceived or reduced to practice or learned by me, either alone or jointly with others, during the period of my employment with the Company. Inventions assigned to the Company, or to a third party as directed by the Company pursuant to this Section 2, are hereinafter referred to as “Company Inventions.”

2.4Nonassignable Inventions. I recognize that this Agreement will not be deemed to require assignment of any invention which was developed entirely on my own time without using the Company’s equipment, supplies, facilities, or trade secrets and neither related to the Company’s actual or anticipated business, research or development, nor resulted from work performed by me for the Company (“Nonassignable Inventions”).

2.5Obligation to Keep Company Informed. During the period of my employment and for six months after the last day of my employment with the Company, I will promptly disclose to the Company fully and in writing all Inventions authored, conceived or reduced to practice by me, either alone or jointly with others. In addition, I will promptly disclose to the Company all patent applications filed by me or on my behalf within a year after termination of employment. At the time of each such disclosure, I will advise the Company in writing of any Inventions that I believe are Nonassignable Inventions and I will at that time provide to the Company in writing all evidence necessary to substantiate that belief. The Company will keep in confidence and will not use for any purpose or disclose to third parties without my consent any confidential information disclosed in writing to the Company pursuant to this Agreement relating to Inventions that have been identified as Nonassignable Inventions.

2.6Government or Third Party. I also agree to assign all my right, title and interest in and to any particular Invention to a third party, including without limitation the United States, as directed by the Company.

2.7Works for Hire. I acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of my employment and which are protectable by copyright are “works made for hire,” pursuant to United States Copyright Act (17 U.S.C., Section 101).

2.8Enforcement of Proprietary Rights. I will assist the Company in every proper way to obtain, and from time to time enforce, United States and foreign Proprietary Rights relating to Company Inventions in any and all countries. To that end I will execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof. In addition, I will execute, verify and deliver assignments of such Proprietary Rights to the Company or its designee. My obligation to assist the Company with respect to Proprietary Rights relating to such Company Inventions in any and all countries shall continue beyond the termination of my employment, but the Company shall compensate me at a reasonable rate after my termination for the time actually spent by me at the Company’s request on such assistance.

In the event the Company is unable for any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions specified in the preceding paragraph, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, which appointment is coupled with an interest, to act for and in my behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of the preceding paragraph with the same legal force and effect as if executed by me. I hereby waive and quitclaim to the Company any and all claims, of any nature whatsoever, which I now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company.

3.NO CONFLICTS OR SOLICITATION. I agree that during the period of my employment by the Company I will not, without the Company’s express written consent, engage in any other employment or business activity directly related to the business in which the Company is now involved or becomes involved, nor will I engage in any other activities which conflict with my obligations to the Company. To protect the Company’s Proprietary Information, and because of the position in the Company that I hold, I agree that during my employment with the Company whether full-time or part-time and for a period of 12 months after my last day of employment with the Company, I will not (a) directly or indirectly solicit or induce any employee of the Company to terminate or negatively alter her or her relationship with the Company or (b) directly or indirectly solicit the business of any client or customer of the Company (other than on behalf of the Company) or (c) directly or indirectly induce any client, customer, supplier, vendor, consultant or independent contractor of the Company to terminate or negatively alter her, her or its relationship with the Company. I agree that the geographic scope of the non-solicitation should include the “Restricted Territory” (as defined below).

4.COVENANT NOT TO COMPETE. I acknowledge that during my employment I will have access to and knowledge of Proprietary Information. I also acknowledge that during my employment with the Company, I have held and/or will hold a management or executive position or am, or will be, an assistant to a manager or executive. To protect the Company’s Proprietary Information, and because of the position in the Company that I may hold, I agree that during my employment with the Company whether full-time or part-time and for a period of 12 months after my last day of employment with the Company, I will not directly or indirectly personally participate or engage in (whether as an employee, consultant, proprietor, partner, director or otherwise), or have any ownership interest in, or participate in the financing, operation, management or control of, any person, firm, corporation or business that engages in a “Restricted Business” in a “Restricted Territory” (as defined below). It is agreed that ownership of (i) no more than one percent (1%) of the outstanding voting stock of a publicly traded corporation, or (ii) any stock I presently own shall not constitute a violation of this provision.

4.1Reasonable. I agree and acknowledge that the time limitation on the restrictions in this paragraph, combined with the geographic scope, is reasonable. I also acknowledge and agree that this paragraph is reasonably necessary for the protection of Company’s Proprietary Information as defined in paragraph 1.2 herein, that through my employment I shall receive adequate consideration for any loss of opportunity associated with the provisions herein, and that these provisions provide a reasonable way of protecting Company’s business value which will be imparted to me.

4.2As used herein, the terms:

(i)    “Restricted Business” shall mean the design, development, marketing, commercialization or sales of any products or services that directly compete in the marketplace with any such product then sold by the Company or then in development by the Company and projected to be sold within one (1) year of my last day of employment with the Company.

(ii)    “Restricted Territory” shall mean any state, county, or locality in the United States in which the Company conducts business and any other country, city, state, jurisdiction, or territory in which the Company does business.

5.RECORDS. I agree to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that may be required by the Company) of all Proprietary Information developed by me and all Inventions made by me during the period of my employment at the Company, which records shall be available to and remain the sole property of the Company at all times.

6.NO CONFLICTING OBLIGATION. I represent that my performance of all the terms of this Agreement and as an employee of the Company does not and will not breach any agreement to keep in confidence information acquired by me in confidence or in trust prior to my employment by the Company. I have not entered into, and I agree I will not enter into, any agreement either written or oral in conflict herewith.

7.RETURN OF COMPANY MATERIALS. When I leave the employ of the Company, I will deliver to the Company any and all drawings, notes, memoranda, specifications, devices, formulas, and documents, together with all copies thereof, and any other material containing or disclosing any Company Inventions, Third Party Information or Proprietary Information of the Company. I further agree that any property situated on the Company’s premises and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice.

8.LEGAL AND EQUITABLE REMEDIES. Because my services are personal and unique and because I may have access to and become acquainted with the Proprietary Information of the Company, the Company shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement.

9.NOTICES. Any notices required or permitted hereunder shall be given to the appropriate party at the address specified below or at such other address as the party shall specify in writing. Such notice shall be deemed given upon personal delivery to the appropriate address or if sent by certified or registered mail, three days after the date of mailing.

10.NOTIFICATION OF NEW EMPLOYER. In the event that I leave the employ of the Company, I hereby consent to the notification of my new employer of my rights and obligations under this Agreement.

11.GENERAL PROVISIONS.

11.1Governing Law; Consent to Personal Jurisdiction and Exclusive Forum. This Agreement will be governed by and construed according to the laws of the State of Colorado without regard to conflicts of law principles. I hereby expressly understand and consent that my employment is a transaction of business in the State of Colorado and constitutes the minimum contacts necessary to make me subject to the personal jurisdiction of the federal courts located in the State of Colorado, and the state courts located in the County of Denver County, Colorado, for any lawsuit filed against me by Company arising from or related to this Agreement. I agree and acknowledge that any controversy arising out of or relating to this Agreement or the breach thereof, or any claim or action to enforce this Agreement or portion thereof, or any controversy or claim requiring interpretation of this Agreement must be brought in a forum located within the State of Colorado.

12.Severability. In case any one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. If any restriction set forth in this Agreement is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

12.1Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of the Company, its successors, and its assigns.

12.2Survival. The provisions of this Agreement shall survive the termination of my employment and the assignment of this Agreement by the Company to any successor in interest or other assignee.

12.3No Employment Rights. I agree and understand that my employment is at-will which means I or the company each have the right to terminate my employment at will, with or without advanced notice and with or without cause. I further agree and understand that nothing in this Agreement shall confer any right with respect to continuation of employment by the Company, nor shall it interfere in any way with my right or the Company’s right to terminate my employment at any time, with or without cause.

12.4Waiver. No waiver by the Company of any breach of this Agreement shall be a waiver of any preceding or succeeding breach. No waiver by the Company of any right under this Agreement shall be construed as a waiver of any other right. The Company shall not be required to give notice to enforce strict adherence to all terms of this Agreement.

12.5Entire Agreement. The obligations pursuant to Sections 1 through 4 and Sections 6 and 7 (including all subparts) of this Agreement shall apply to any time during which I was previously employed, or am in the future employed, by the Company as a consultant if no other agreement governs nondisclosure and assignment of inventions during such period. This Agreement is the final, complete and exclusive agreement of the parties with respect to the subject matter hereof and supersedes and merges all prior discussions between us. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and signed by the party to be charged. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement

This Agreement shall be effective as of the first day of my employment with the Company, namely: [First date of employment].

I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS. I HAVE COMPLETELY FILLED OUT SCHEDULE A TO THIS AGREEMENT.

Dated:

[Name of executive]            

EXHIBIT B

RELEASE

In exchange for the consideration provided to me by this Agreement that I am not otherwise entitled to receive, I hereby generally and completely release the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions related to my employment with the Company or the termination of that employment, including, but not limited to: (1) all claims related to my compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (2) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (3) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (4) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), and the Colorado state law (as amended). Notwithstanding the foregoing, nothing contained in this Release is intended to release the Company from any claim arising out of or with regard to: (i) any payment to be made to me by the Company in connection the termination of employment as contemplated by the Employment Agreement, or (ii) any statutory obligation that the Company may have with regard to the continuation of benefits.

[IF APPLICABLE] ADEA Waiver and Release. I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA, as amended. I also acknowledge that the consideration given for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) my waiver and release does not apply to any rights or claims that may arise after the execution date of this Agreement; (b) I have been advised that I have the right to consult with an attorney prior to executing this Agreement; (c) I have been given twenty-one (21) days to consider this Agreement; (d) I have seven (7) days following the execution of this Agreement by the parties to revoke the Agreement; and (e) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth day after this Agreement is executed by you, provided that the Company has also executed this Agreement by that date (“Effective Date”). The parties acknowledge and agree that revocation by you of the ADEA Waiver and Release is not effective to revoke your waiver or release of any other claims pursuant to this Agreement.

I agree not to disparage Company or Company’s officers, directors, employees, shareholders, parents, subsidiaries, affiliates, and agents, in any manner likely to be harmful to them or their business, business reputation or personal reputation; provided that I may respond accurately and fully to any question, inquiry or request for information when required by legal process

By:    Date:

EX-31.1

EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Chad A. Carlson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of StarTek, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 11, 2015	/s/ CHAD A. CARLSON
	Chad A. Carlson
	President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Lisa A. Weaver, certify that:

1. I have reviewed this quarterly report on Form 10-Q of StarTek, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 11, 2015	/s/ LISA A. WEAVER
	Lisa A. Weaver
	Senior Vice President, Chief Financial Officer and Treasurer

EX-32.1

EXHIBIT 32.1

CERTIFICATIONS

In connection with the Quarterly Report of StarTek, Inc. on Form 10-Q for the quarterly period ended March 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned individuals, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Registrant.

Date: May 11, 2015	/s/ CHAD A. CARLSON
	Chad A. Carlson
	President and Chief Executive Officer
Date: May 11, 2015	/s/ LISA A. WEAVER
	Lisa A. Weaver
	Senior Vice President, Chief Financial Officer and Treasurer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Corporation and will be retained by the Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Accumulated Other Comprehensive Loss [Roll Forward]
Foreign Currency Translation Adjustment - Beginning balance	$ 1,486
Derivatives Accounted for as Cash Flow Hedges - Beginning balance	(2,311)
Total - Beginning balance	(825)
Foreign currency translation	(67)
Reclassification to operations, derivatives	622
Unrealized gains (losses)	(614)
Foreign Currency Translation Adjustment - Ending balance	1,419
Derivatives Accounted for as Cash Flow Hedges - Ending balance	(2,303)
Total - Ending balance	$ (884)

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PRINCIPAL CLIENTS (Details) (USD $) In Thousands, unless otherwise specified	0 Months Ended	3 Months Ended				0 Months Ended
	Jul. 28, 2011	Mar. 31, 2015		Mar. 31, 2014		Jan. 04, 2014
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom
Revenue, Major Customers [Line Items]
Revenue		$ 18,089		$ 18,639
Revenue concentration, percentage		28.40%		29.50%
Initial term of the master service agreement	5 years
Master services agreement, renewal term	1 year
Notice of termination option of the initial term	90 days
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T Inc.
Revenue, Major Customers [Line Items]
Revenue		10,740	[1]	15,344	[1]
Revenue concentration, percentage		16.90%	[1]	24.30%	[1]
Comcast Cable Communications Management LLC, subsidiary of Comcast Corporation
Revenue, Major Customers [Line Items]
Revenue		$ 8,878	[2]	$ 10,959	[2]
Revenue concentration, percentage		13.90%	[2]	17.30%	[2]
Initial term of the master service agreement						1 year
Master services agreement, renewal term						1 year
Notice of termination option of the initial term						90 days

[1] Revenue from this customer is generated through our Domestic and Asia Pacific segments.

[2] Revenue from this customer is generated through our Domestic and Asia Pacific segments in 2014 and 2015 and through our Latin America segment in 2014.

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring

The following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy.  Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2015
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	17	$	—	$	17
Total fair value of assets measured on a recurring basis	$	—	$	17	$	—	$	17
Liabilities:
Foreign exchange contracts	$	—	$	1,210	$	—	$	1,210
Total fair value of liabilities measured on a recurring basis	$	—	$	1,210	$	—	$	1,210

	Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	48	$	—	$	48
Total fair value of assets measured on a recurring basis	$	—	$	48	$	—	$	48
Liabilities:
Foreign exchange contracts	$	—	$	1,250	$	—	$	1,250
Total fair value of liabilities measured on a recurring basis	$	—	$	1,250	$	—	$	1,250

	Liabilities Measured at Fair Value on a Non-Recurring Basis as of March 31, 2015
	Level 1		Level 2		Level 3		Total
Liabilities:
Accrued restructuring costs	$	—	$	—	$	54	$	54
Total fair value of liabilities measured on a non-recurring basis	$	—	$	—	$	54	$	54

	Liabilities Measured at Fair Value on a Non-Recurring Basis as of December 31, 2014
	Level 1		Level 2		Level 3		Total
Liabilities:
Accrued restructuring costs	$	—	$	—	$	105	$	105
Total fair value of liabilities measured on a non-recurring basis	$	—	$	—	$	105	$	105

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SEGMENT INFORMATION (Segment Reporting) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Revenue	$ 63,653	$ 63,209
Gross profit	6,117	8,218
Reportable Geographical Components [Member] | Domestic
Segment Reporting Information [Line Items]
Revenue	35,624	33,307
Gross profit	2,407	4,543
Reportable Geographical Components [Member] | Asia Pacific
Segment Reporting Information [Line Items]
Revenue	20,331	21,052
Gross profit	2,522	3,604
Reportable Geographical Components [Member] | Latin America
Segment Reporting Information [Line Items]
Revenue	7,698	8,850
Gross profit	$ 1,188	$ 71

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DEBT Capital Leases (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
Long-term obligations under capital leases	$ 7,826	$ 4,264
Current obligations under capital leases	$ 1,837	$ 810

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RESTRUCTURING CHARGES

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

Restructuring Charges

The table below summarizes the balance of accrued restructuring costs, which is included in other current liabilities in our consolidated balance sheets, and the changes during the three months ended March 31, 2015: 

	Jonesboro			Costa Rica			Corporate			Total
Balance as of December 31, 2014	$	64		$	9		$	32		$	105
Expense (reversal)	(14		)	—			4			(10		)
Payments	(25		)	(9		)	(7		)	(41		)
Balance as of March 31, 2015	$	25		$	—		$	29		$	54

In February 2014, we announced the closure of our Jonesboro, Arkansas facility, which ceased operations in the second quarter of 2014 when the business transitioned to another facility. We established a restructuring reserve of $192 for employee related costs and recognized additional charges of $609 when the facility closed. The remaining costs are expected to be paid out through 2015. We also recognized a net gain of $256 related to the early termination of our lease.

In June 2014, we announced the closure of our Heredia, Costa Rica facility, included in our Latin America segment, which ceased operations in the third quarter of 2014. We established a restructuring reserve of $1,004 for employee related costs and recognized additional charges in the third quarter of 2014 of $338 when the facility closed. The restructuring charges for those employees who continued to work after the notification date were recognized over the service period. The restructuring plan was complete in the first quarter of 2015 and we do not expect to incur any additional restructuring liabilities in future periods for this location.

During 2014, we continued to pursue operating efficiencies through streamlining our organizational structure and leveraging our shared services centers in low-cost regions. We eliminated several positions as a result and incurred restructuring charges of $279. We expect to pay the remaining costs through 2015.

During 2014, we moved forward with our initiative to outsource our data centers and move to a hosted solutions model. We recognized $2,388 of restructuring charges through March 31, 2015. Additional transition costs will be recognized through 2015 as restructuring charges as incurred in operating income and are expected to be approximately $200.

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SUBSEQUENT EVENTS (Details) (USD $)	0 Months Ended
	May 11, 2015	Mar. 31, 2015	Apr. 29, 2015
Subsequent Event
Subsequent Event [Line Items]
Merger agreement, purchase price	$ 16,000,000
Revolving Credit Facility
Subsequent Event [Line Items]
Maximum borrowing capacity		20,000,000
Revolving Credit Facility | Wells Fargo Bank | Subsequent Event
Subsequent Event [Line Items]
Maximum borrowing capacity			20,000,000
Revolving Credit Facility | BMO Harris Bank | Subsequent Event
Subsequent Event [Line Items]
Borrowing capacity			50,000,000
Maximum borrowing capacity			70,000,000
Increments for additional borrowing			$ 5,000,000

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GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 4,136	$ 4,136
Finite-Lived Intangible Assets [Line Items]
Gross Intangibles		2,910
Accumulated Amortization	398
Net Intangibles	2,512	2,609
Weighted Average Amortization Period (years)	4 years 1 month 10 days
Remainder of 2015	290
2016	354
2017	343
2018	343
2019	334
Thereafter	848
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Intangibles		390
Accumulated Amortization	97
Net Intangibles	293
Weighted Average Amortization Period (years)	3 years 6 months
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Intangibles		2,310
Accumulated Amortization	258
Net Intangibles	2,052
Weighted Average Amortization Period (years)	4 years 3 months
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross Intangibles		200
Accumulated Amortization	33
Net Intangibles	167
Weighted Average Amortization Period (years)	3 years 4 months 28 days
Noncompete agreement
Finite-Lived Intangible Assets [Line Items]
Gross Intangibles		10
Accumulated Amortization	10
Net Intangibles	$ 0

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ACQUISITION (Details) (USD $) In Thousands, unless otherwise specified	0 Months Ended	3 Months Ended
	Oct. 01, 2014	Mar. 31, 2015
Collections Center, Inc.
Business Acquisition [Line Items]
Business acquisition, purchase price	$ 4,105
Payments to acquire business	2,610
Customer relationships
Business Acquisition [Line Items]
Intangible assets, useful life		8 years
Customer relationships | Collections Center, Inc.
Business Acquisition [Line Items]
Identifiable intangible assets acquired, finite-lived		1,840
Trade name
Business Acquisition [Line Items]
Intangible assets, useful life		7 years
Trade name | Collections Center, Inc.
Business Acquisition [Line Items]
Identifiable intangible assets acquired, finite-lived		130
Goodwill
Business Acquisition [Line Items]
Goodwill		2,135

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RESTRUCTURING CHARGES (Textuals) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended			12 Months Ended	3 Months Ended
	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2014	Sep. 30, 2014
Restructuring Cost and Reserve [Line Items]
Expense	$ (10)
Domestic | Jonesboro
Restructuring Cost and Reserve [Line Items]
Expense	(14)
Gain on early termination of lease		256
Domestic | Jonesboro | Employee-Related Costs
Restructuring Cost and Reserve [Line Items]
Expense			192
Domestic | Jonesboro | Facility Closing Costs
Restructuring Cost and Reserve [Line Items]
Expense		609
Domestic | Corporate | Employee-Related Costs
Restructuring Cost and Reserve [Line Items]
Expense	4			279
Domestic | Corporate | Other Restructuring
Restructuring Cost and Reserve [Line Items]
Expense	2,388
Restructuring, expected cost	200
Latin America | Costa Rica
Restructuring Cost and Reserve [Line Items]
Expense	0
Latin America | Costa Rica | Employee-Related Costs
Restructuring Cost and Reserve [Line Items]
Expense		1,004
Latin America | Costa Rica | Facility Closing Costs
Restructuring Cost and Reserve [Line Items]
Expense					$ 338

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RESTRUCTURING CHARGES (Summary of Activity, Restructuring Plans) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended			12 Months Ended	3 Months Ended
	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2014	Sep. 30, 2014
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2014	$ 105
Expense	(10)
Payments, net of receipts for sublease	(41)
Balance as of March 31, 2015	54
Domestic | Jonesboro
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2014	64
Expense	(14)
Payments, net of receipts for sublease	(25)
Balance as of March 31, 2015	25
Domestic | Facility Closing Costs | Jonesboro
Restructuring Reserve [Roll Forward]
Expense		609
Domestic | Employee-Related Costs | Jonesboro
Restructuring Reserve [Roll Forward]
Expense			192
Domestic | Employee-Related Costs | Corporate
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2014	32
Expense	4			279
Payments, net of receipts for sublease	(7)
Balance as of March 31, 2015	29			32
Latin America | Costa Rica
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2014	9
Expense	0
Payments, net of receipts for sublease	(9)
Balance as of March 31, 2015	0
Latin America | Facility Closing Costs | Costa Rica
Restructuring Reserve [Roll Forward]
Expense					338
Latin America | Employee-Related Costs | Costa Rica
Restructuring Reserve [Roll Forward]
Expense		$ 1,004

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GOODWILL AND INTANGIBLE ASSETS (Notes)

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The goodwill of $4,136 recognized from our acquisitions during 2013 and 2014 was assigned to our Domestic segment. The tax basis of the goodwill is deductible for income tax purposes.

Intangible Assets

The following table presents our intangible assets as of March 31, 2015:

	Gross Intangibles		Accumulated Amortization		Net Intangibles		Weighted Average Amortization Period (years)
Developed technology	$	390	$	97	$	293	3.50
Customer base	2,310		258		2,052		4.25
Trade name	200		33		167		3.41
Noncompete agreement	10		10		—
	$	2,910	$	398	$	2,512	4.11

Expected future amortization of intangible assets as of March 31, 2015 is as follows:

Year Ending December 31,	Amount
Remainder of 2015	$	290
2016	354
2017	343
2018	343
2019	334
Thereafter	848

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NET LOSS PER SHARE (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	2,493,720	2,359,409

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ACCUMULATED OTHER COMPREHENSIVE LOSS Reclassification (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of services	$ 57,536	$ 54,991
Selling, general and administrative expenses	8,061	8,249
Reclassification to operations	622	1,315
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Foreign exchange contracts | Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of services	576	1,222
Selling, general and administrative expenses	$ 46	$ 93

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenue	$ 63,653	$ 63,209
Cost of services	57,536	54,991
Gross profit	6,117	8,218
Selling, general and administrative expenses	8,061	8,249
Restructuring charges	806	191
Operating loss	(2,750)	(222)
Interest and other income (expense), net	(238)	(128)
Loss before income taxes	(2,988)	(350)
Income tax expense	187	150
Net loss	(3,175)	(500)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(67)	(112)
Change in fair value of derivative instruments	8	355
Comprehensive loss	$ (3,234)	$ (257)
Net loss per common share - basic and diluted (in usd per share)	$ (0.21)	$ (0.03)
Weighted average common shares outstanding - basic and diluted (in shares)	15,417	15,377

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. These financial statements reflect all adjustments (consisting only of normal recurring entries, except as noted) which, in the opinion of management, are necessary for fair presentation. Operating results for the three months ended March 31, 2015, are not necessarily indicative of operating results that may be expected during any other interim period of 2015 or the year ending December 31, 2015.

The consolidated balance sheet as of December 31, 2014, included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

Unless otherwise noted in this report, any description of "us," "we," or "our," refers to StarTek, Inc. and its subsidiaries. Financial information in this report is presented in U.S. dollars.

Use of Estimates

The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes.  Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they are determined to be necessary.

Recent Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in ASU 2015-03. ASU 2015-03 will be effective for fiscal years beginning after December 15, 2015. We are currently evaluating the impact that the adoption of ASU 2015-03 may have on our consolidated financial statements or disclosures.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016; however, in April 2015, the FASB voted to propose a one-year deferral of the effective date. The proposed deferral may permit early adoption, but would not allow adoption any earlier than the original effective date of the standard. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently assessing the impact the adoption of ASU 2014-09, including possible transition alternatives, will have on our financial statements.

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FAIR VALUE MEASUREMENTS (Recurring and Nonrecurring) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Recurring
Assets and Liabilities at Fair Value Measured on Recurring Basis
Assets, Foreign exchange contracts	$ 17	$ 48
Total fair value of assets measured on a recurring basis	17	48
Nonrecurring
Assets and Liabilities at Fair Value on a Nonrecurring Basis
Accrued restructuring costs	54	105
Total fair value of liabilities measured on a non-recurring basis	54	105
Level 2 | Recurring
Assets and Liabilities at Fair Value Measured on Recurring Basis
Assets, Foreign exchange contracts	17	48
Total fair value of assets measured on a recurring basis	17	48
Level 3 | Nonrecurring
Assets and Liabilities at Fair Value on a Nonrecurring Basis
Accrued restructuring costs	54	105
Total fair value of liabilities measured on a non-recurring basis	54	105
Foreign exchange contracts | Recurring
Assets and Liabilities at Fair Value Measured on Recurring Basis
Liabilities, Foreign exchange contracts	1,210	1,250
Total fair value of liabilities measured on a recurring basis	1,210	1,250
Foreign exchange contracts | Level 2 | Recurring
Assets and Liabilities at Fair Value Measured on Recurring Basis
Liabilities, Foreign exchange contracts	1,210	1,250
Total fair value of liabilities measured on a recurring basis	$ 1,210	$ 1,250

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RESTRUCTURING CHARGES (Tables)

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs

The table below summarizes the balance of accrued restructuring costs, which is included in other current liabilities in our consolidated balance sheets, and the changes during the three months ended March 31, 2015: 

	Jonesboro			Costa Rica			Corporate			Total
Balance as of December 31, 2014	$	64		$	9		$	32		$	105
Expense (reversal)	(14		)	—			4			(10		)
Payments	(25		)	(9		)	(7		)	(41		)
Balance as of March 31, 2015	$	25		$	—		$	29		$	54

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DEBT (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Line of credit	$ 9,286,000	$ 4,640,000
Long-term Debt, Current and Noncurrent [Abstract]
Long-term debt	1,000,000
Long-term debt, current portion	380,000	373,000
Long-term debt, net of current portion	408,000	506,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	20,000,000
Line of credit	9,286,000
Remaining borrowing capacity	10,654,000
Amount outstanding for undrawn letters of credit issued under revolving credit facility	$ 60,000

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DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table shows the notional amount of our foreign exchange cash flow hedging instruments as of March 31, 2015:

	Local Currency Notional Amount	U.S. Dollar Notional Amount
Canadian Dollar	10,600	$	9,102
Philippine Peso	1,590,830	35,734
		$	44,836

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ACQUISITION

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

ACQUISITIONS

ACQUISITION

Collection Center, Inc.

On October 1, 2014, we acquired Collection Center, Inc. ("CCI"), a receivables management company for approximately $4,105, net of interest incurred. CCI specializes in providing collection services primarily in the healthcare industry and also in the financial services, utility and commercial industries.

We paid $2,610 of the purchase price in cash on the acquisition date with the remaining balance to be paid quarterly by September 2016. The remaining payments may be adjusted if certain quarterly revenue targets are not met. Minimal acquisition-related expenses were paid, which were recorded in selling, general and administrative expenses. Financial results from the date of acquisition are included in the results of operations within our Domestic segment.

We finalized our purchase price allocation during the three months ended March 31, 2015 and there were no adjustments to the preliminary estimates of fair value assigned at the acquisition date.

	Acquisition Date Fair Value
Customer relationships	$	1,840
Trade name	130
Goodwill	2,135
Total purchase price	$	4,105

The customer relationships and trade name have estimated useful lives of eight years and seven years, respectively. The goodwill recognized was attributable primarily to the acquired workforce and further expansion into the health care industry.

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CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 6,465	$ 5,306
Trade accounts receivable, net	45,797	46,103
Derivative asset	17	48
Prepaid expenses	3,465	2,257
Other current assets	1,170	794
Total current assets	56,914	54,508
Property, plant and equipment, net	32,398	28,180
Long-term deferred income tax assets	1,386	1,429
Intangible assets, net	2,512	2,609
Goodwill	4,136	4,136
Other long-term assets	2,892	2,931
Total assets	100,238	93,793
Current liabilities:
Accounts payable	10,812	10,434
Accrued liabilities:
Accrued payroll	7,019	5,522
Accrued compensated absences	2,173	2,309
Other accrued liabilities	1,122	3,040
Line of credit	9,286	4,640
Derivative liability	1,210	1,250
Deferred income tax liabilities	991	965
Other current liabilities	4,604	3,512
Total current liabilities	37,217	31,672
Deferred rent	1,897	1,593
Long-term obligations under capital leases	7,826	4,264
Other liabilities	1,303	1,583
Total liabilities	48,243	39,112
Commitments and contingencies
Stockholders' equity:
Common stock, 32,000,000 non-convertible shares, $0.01 par value, authorized; 15,425,275 and 15,414,803 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively	154	154
Additional paid-in capital	76,604	76,056
Accumulated other comprehensive loss	(884)	(825)
Accumulated deficit	(23,879)	(20,704)
Total stockholders' equity	51,995	54,681
Total liabilities and stockholders' equity	$ 100,238	$ 93,793

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SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We operate our business within three reportable segments, based on the geographic regions in which our services are rendered: Domestic, Asia Pacific and Latin America. As of March 31, 2015, our Domestic segment included the operations of nine facilities in the U.S. and one facility in Canada. Our Asia Pacific segment included the operations of four facilities in the Philippines and our Latin America segment included two facilities in Honduras. Operations at our facility in Costa Rica, which were included in our Latin America segment, ceased in August 2014.

We primarily evaluate segment operating performance in each reporting segment based on net sales, gross profit and working capital. Certain operating expenses are not allocated to each reporting segment; therefore, we do not present income statement information by reporting segment below the gross profit level.

Information about our reportable segments, which correspond to the geographic areas in which we operate, for the three months ended March 31, 2015 and 2014 is as follows:

	For the Three Months Ended March 31,
	2015		2014
Revenue:
Domestic	$	35,624	$	33,307
Asia Pacific	20,331		21,052
Latin America	7,698		8,850
Total	$	63,653	$	63,209
Gross profit:
Domestic	$	2,407	$	4,543
Asia Pacific	2,522		3,604
Latin America	1,188		71
Total	$	6,117	$	8,218

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DOCUMENT AND ENTITY INFORMATION	3 Months Ended
	Mar. 31, 2015	May 05, 2015
Document and Entity Information Abstract
Entity Registrant Name	StarTek, Inc.
Entity Central Index Key	0001031029
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		15,524,568
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

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SUBSEQUENT EVENTS (Notes)

3 Months Ended

Mar. 31, 2015

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Merger Agreement

On May 11, 2015, we entered into a definitive agreement to acquire Accent Marketing Services, L.L.C., a customer engagement outsourcing agency servicing the telecommunications, retail, consumer products, technology and financial services industries for approximately $16,000 in cash.

BMO Harris Bank Credit Facility

On April 29, 2015, we terminated our $20,000 secured revolving credit facility with Wells Fargo, which was effective through February 28, 2016, and replaced it with a secured revolving credit facility with BMO Harris Bank N.A.  The credit agreement is effective through April 2020 and the amount we may borrow under the agreement is the lesser of the borrowing base calculation and $50,000, and so long as no default has occurred and with the administrative agent’s consent, we may increase the maximum availability to $70,000 in $5,000 increments.

Enid, Oklahoma

In April 2015, we made the decision to discontinue our operations in Enid, Oklahoma.

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CONSOLIDATED BALANCE SHEETS [Parenthetical] (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, non-convertible shares authorized	32,000,000	32,000,000
Common stock, shares issued	15,425,275	15,414,803
Common stock, shares outstanding	15,425,275	15,414,803

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DERIVATIVE INSTRUMENTS

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

We use derivatives to partially offset our business exposure to foreign currency exchange risk. We enter into foreign currency exchange contracts to hedge our anticipated operating commitments that are denominated in foreign currencies, including forward contracts and range forward contracts (a transaction where both a call option is purchased and a put option is sold).  The contracts cover periods commensurate with expected exposure, generally three to twelve months, and are principally unsecured foreign exchange contracts.  The market risk exposure is essentially limited to risk related to currency rate movements.  We operate in Canada, the Philippines and Honduras. The functional currencies in Canada and the Philippines are

the Canadian dollar and the Philippine peso, respectively, which are used to pay labor and other operating costs in those

countries. We provide funds for these operating costs as our client contracts generate revenues, which are paid in U.S. dollars.

In Honduras, our functional currency is the U.S. dollar and the majority of our costs are denominated in U.S. dollars. As of March 31, 2015, we have not entered into any arrangements to hedge our exposure to fluctuations in the Honduran lempira relative to the U.S. dollar.

We have elected to designate our derivatives as cash flow hedges in order to associate the results of the hedges with forecasted expenses. Unrealized gains and losses are recorded in accumulated other comprehensive income (“AOCI”) and will be re-classified to operations as the forecasted expenses are incurred, typically within one year. During the three months ended March 31, 2015 and 2014, our cash flow hedges were highly effective and hedge ineffectiveness was not material.

The following table shows the notional amount of our foreign exchange cash flow hedging instruments as of March 31, 2015:

	Local Currency Notional Amount	U.S. Dollar Notional Amount
Canadian Dollar	10,600	$	9,102
Philippine Peso	1,590,830	35,734
		$	44,836

Derivative assets and liabilities associated with our hedging activities are measured at gross fair value as described in Note 8, "Fair Value Measurements", and are reflected as separate line items in our consolidated balance sheets.

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PRINCIPAL CLIENTS

3 Months Ended

Mar. 31, 2015

Risks and Uncertainties [Abstract]

PRINCIPAL CLIENTS

PRINCIPAL CLIENTS

The following table represents revenue concentration of our principal clients:

	Three Months Ended March 31,
	2015				2014
	Revenue		Percentage		Revenue		Percentage
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom (2)	$	18,089	28.4	%	$	18,639	29.5	%
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T, Inc. (1)	$	10,740	16.9	%	$	15,344	24.3	%
Comcast Cable Communications Management, LLC, subsidiary of Comcast Corporation (2)	$	8,878	13.9	%	$	10,959	17.3	%

(1) Revenue from this customer is generated through our Domestic and Asia Pacific segments.

(2) Revenue from this customer is generated through our Domestic and Asia Pacific segments in 2014 and 2015 and through our Latin America segment in 2014.

We enter into contracts and perform services with our major clients that fall under the scope of master service agreements (MSAs) with statements of work (SOWs) specific to each line of business. These MSAs and SOWs may automatically renew or be extended by mutual agreement and are generally terminable by the customer or us with prior written notice.

On July 28, 2011, we entered into a new MSA with T-Mobile effective July 1, 2011, which has an initial term of five years and will automatically renew for additional one-year periods thereafter, but may be terminated by T-Mobile upon 90 days written notice.

On January 25, 2013, we entered into a new MSA with AT&T Services, Inc., which expires December 31, 2015 and may be extended upon mutual agreement, but may be terminated by AT&T with written notice.

On January 4, 2014, we entered into a new MSA with Comcast, effective June 22, 2013. The new MSA has an initial term of one year and will automatically renew for additional one-year periods unless either party gives notice of cancellation. Comcast may terminate the agreement upon 90 days written notice. Neither party gave notice of termination; therefore, the contract has renewed for the year ending June 22, 2015, but Comcast may terminate the agreement upon 90 days written notice.

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PRINCIPAL CLIENTS (Tables)

3 Months Ended

Mar. 31, 2015

Risks and Uncertainties [Abstract]

Schedule of Revenue by Major Customers

The following table represents revenue concentration of our principal clients:

	Three Months Ended March 31,
	2015				2014
	Revenue		Percentage		Revenue		Percentage
T-Mobile USA, Inc., a subsidiary of Deutsche Telekom (2)	$	18,089	28.4	%	$	18,639	29.5	%
AT&T Services, Inc. and AT&T Mobility, LLC, subsidiaries of AT&T, Inc. (1)	$	10,740	16.9	%	$	15,344	24.3	%
Comcast Cable Communications Management, LLC, subsidiary of Comcast Corporation (2)	$	8,878	13.9	%	$	10,959	17.3	%

(1) Revenue from this customer is generated through our Domestic and Asia Pacific segments.

(2) Revenue from this customer is generated through our Domestic and Asia Pacific segments in 2014 and 2015 and through our Latin America segment in 2014.

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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes.  Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period they are determined to be necessary.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in ASU 2015-03. ASU 2015-03 will be effective for fiscal years beginning after December 15, 2015. We are currently evaluating the impact that the adoption of ASU 2015-03 may have on our consolidated financial statements or disclosures.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016; however, in April 2015, the FASB voted to propose a one-year deferral of the effective date. The proposed deferral may permit early adoption, but would not allow adoption any earlier than the original effective date of the standard. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently assessing the impact the adoption of ASU 2014-09, including possible transition alternatives, will have on our financial statements.

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SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

Our share-based compensation arrangements include grants of stock options, restricted stock awards and deferred stock units under the StarTek, Inc. 2008 Equity Incentive Plan, certain awards granted outside of these plans and our Employee Stock Purchase Plan. The compensation expense that has been charged against income for stock option awards and restricted stock for the three months ended March 31, 2015 and 2014 was $496 and $402, respectively, and is included in selling, general and administrative expense.  As of March 31, 2015, there was $1,942 of total unrecognized compensation expense related to nonvested stock options, which is expected to be recognized over a weighted-average period of 2.0 years.

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

The carrying value of our cash and cash equivalents, accounts receivable, accounts payable and line of credit approximate fair value because of their short-term nature.

Derivative Instruments and Hedging Activities

The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves.  The inputs to the valuation pricing models are observable in the market, and as such the derivatives are classified as Level 2 in the fair value hierarchy.

Restructuring Charges

Accrued restructuring costs were valued using a discounted cash flow model.  Significant assumptions used in determining the amount of the estimated liability for closing a facility are the estimated liability for future lease payments on vacant facilities and the discount rate utilized to determine the present value of the future expected cash flows. If the assumptions regarding early termination and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses, or conversely, a future gain, in the consolidated statements of operations and comprehensive income (loss).

In the future, if we sublease for periods that differ from our assumption or if an actual buy-out of a lease differs from our estimate, we may be required to record a gain or loss.  Future cash flows also include estimated property taxes through the remainder of the lease term, which are valued based upon historical tax payments.  Given that the restructuring charges were valued using our internal estimates using a discounted cash flow model, we have classified the accrued restructuring costs as Level 3 in the fair value hierarchy.

Fair Value Hierarchy

The following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy.  Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2015
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	17	$	—	$	17
Total fair value of assets measured on a recurring basis	$	—	$	17	$	—	$	17
Liabilities:
Foreign exchange contracts	$	—	$	1,210	$	—	$	1,210
Total fair value of liabilities measured on a recurring basis	$	—	$	1,210	$	—	$	1,210

	Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	—	$	48	$	—	$	48
Total fair value of assets measured on a recurring basis	$	—	$	48	$	—	$	48
Liabilities:
Foreign exchange contracts	$	—	$	1,250	$	—	$	1,250
Total fair value of liabilities measured on a recurring basis	$	—	$	1,250	$	—	$	1,250

	Liabilities Measured at Fair Value on a Non-Recurring Basis as of March 31, 2015
	Level 1		Level 2		Level 3		Total
Liabilities:
Accrued restructuring costs	$	—	$	—	$	54	$	54
Total fair value of liabilities measured on a non-recurring basis	$	—	$	—	$	54	$	54

	Liabilities Measured at Fair Value on a Non-Recurring Basis as of December 31, 2014
	Level 1		Level 2		Level 3		Total
Liabilities:
Accrued restructuring costs	$	—	$	—	$	105	$	105
Total fair value of liabilities measured on a non-recurring basis	$	—	$	—	$	105	$	105

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DEBT

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

DEBT

DEBT

Line of Credit

Effective February 28, 2012, we entered into a secured revolving credit facility ("Credit Agreement") with Wells Fargo Bank, which has a maturity date of February 28, 2016. The amount we may borrow under the Credit Agreement is the lesser of the borrowing base calculation and $20,000. As of March 31, 2015, we had $9,286 outstanding borrowings on our credit facility and available capacity was $10,654, net of $60 of letters of credit backed by the facility.

Under the Credit Agreement, we are subject to certain standard affirmative and negative covenants, including the following financial covenants: 1) maintaining a Minimum Adjusted EBITDA, as defined in the Credit Agreement, of no less than the cumulative month-end minimum amounts set forth in an amendment to the Credit Agreement and 2) limiting non-financed capital expenditures to no more than the cumulative month-end maximum amounts set forth in an amendment to the Credit Agreement. We were in compliance with all such covenants as of March 31, 2015.

In March 2015, the borrowing base was increased to $20,000 and the Company and Wells Fargo agreed on the financial covenants for 2015 and the first quarter of 2016, constituting the Ninth Amendment to the Credit Agreement. Previous amendments are disclosed in our 2014 Annual Report on Form 10-K. Subsequent to quarter-end, the Credit Agreement was replaced with a new facility with BMO Harris Bank N.A., see Note 13 "Subsequent Events".

Financing Agreement

We entered into a financing agreement for the purchase of certain software licenses and related hardware for approximately $1,000, which were delivered and placed into service in April 2014. Monthly payments commenced July 2014. As of March 31, 2015, the current and long-term portion was $380 and $408, respectively, and at December 31, 2014, the current and long-term portion was $373 and $506, respectively. The amounts are included in other current liabilities and other liabilities on the consolidated balance sheets.

Capital Lease Obligations

We had long-term obligations under capital leases of $7,826 and $4,264 as of March 31, 2015 and December 31, 2014, respectively. Long-term obligations under capital leases previously presented for prior periods have been reclassified to conform to the current presentation. The current obligations under capital leases of $1,837 and $810 as of March 31, 2015 and December 31, 2014, respectively, are included in other current liabilities on the consolidated balance sheets. The related assets are included in property, plant and equipment in the consolidated balance sheets.

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ACCUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Mar. 31, 2015

Stockholders' Equity Note [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss consisted of the following items:

	Foreign Currency Translation Adjustment			Derivatives Accounted for as Cash Flow Hedges			Total
Balance at December 31, 2014	$	1,486		$	(2,311	)	$	(825	)
Foreign currency translation	(67		)	—			(67		)
Reclassification to operations	—			622			622
Unrealized gains (losses)	—			(614		)	(614		)
Balance at March 31, 2015	$	1,419		$	(2,303	)	$	(884	)

Reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2015 and 2014 were as follows:

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Loss				Affected Line Item in the Consolidated Statements of Operations and Comprehensive Loss
	Three Months Ended March 31,
	2015		2014
Losses on cash flow hedges
Foreign exchange contracts	$	576	$	1,222	Cost of services
Foreign exchange contracts	46		93		Selling, general and administrative expenses
Total reclassifications for the period	$	622	$	1,315

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DERIVATIVE INSTRUMENTS (Textual) (Details) (Foreign exchange contracts) In Thousands, unless otherwise specified		3 Months Ended
	Mar. 31, 2015 USD ($)	Mar. 31, 2015 Minimum [Member]	Mar. 31, 2015 Maximum [Member]	Mar. 31, 2015 Canadian Dollar USD ($)	Mar. 31, 2015 Canadian Dollar CAD	Mar. 31, 2015 Philippine Peso USD ($)	Mar. 31, 2015 Philippine Peso PHP
Derivative [Line Items]
Derivatives, contract period		3 months	12 months
Derivatives, notional amount	$ 44,836			$ 9,102	10,600	$ 35,734	1,590,830

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GOODWILL AND INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The following table presents our intangible assets as of March 31, 2015:

	Gross Intangibles		Accumulated Amortization		Net Intangibles		Weighted Average Amortization Period (years)
Developed technology	$	390	$	97	$	293	3.50
Customer base	2,310		258		2,052		4.25
Trade name	200		33		167		3.41
Noncompete agreement	10		10		—
	$	2,910	$	398	$	2,512	4.11

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Expected future amortization of intangible assets as of March 31, 2015 is as follows:

Year Ending December 31,	Amount
Remainder of 2015	$	290
2016	354
2017	343
2018	343
2019	334
Thereafter	848

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Mar. 31, 2015

Stockholders' Equity Note [Abstract]

Schedule of Comprehensive Income (Loss)

Accumulated other comprehensive loss consisted of the following items:

	Foreign Currency Translation Adjustment			Derivatives Accounted for as Cash Flow Hedges			Total
Balance at December 31, 2014	$	1,486		$	(2,311	)	$	(825	)
Foreign currency translation	(67		)	—			(67		)
Reclassification to operations	—			622			622
Unrealized gains (losses)	—			(614		)	(614		)
Balance at March 31, 2015	$	1,419		$	(2,303	)	$	(884	)

Reclassification out of Accumulated Other Comprehensive Income

Reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2015 and 2014 were as follows:

Details about Accumulated Other Comprehensive Loss Components	Amount Reclassified from Accumulated Other Comprehensive Loss				Affected Line Item in the Consolidated Statements of Operations and Comprehensive Loss
	Three Months Ended March 31,
	2015		2014
Losses on cash flow hedges
Foreign exchange contracts	$	576	$	1,222	Cost of services
Foreign exchange contracts	46		93		Selling, general and administrative expenses
Total reclassifications for the period	$	622	$	1,315

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SEGMENT INFORMATION (Textual) (Details)	3 Months Ended
	Mar. 31, 2015 segment
Segment Reporting Information [Line Items]
Number of reportable segments	3
U.S.
Segment Reporting Information [Line Items]
Number of operating facilities	9
Canada
Segment Reporting Information [Line Items]
Number of operating facilities	1
Philippines
Segment Reporting Information [Line Items]
Number of operating facilities	4
Honduras
Segment Reporting Information [Line Items]
Number of operating facilities	2

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating Activities
Net loss	$ (3,175)	$ (500)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	3,036	2,356
Losses on disposal of assets	0	5
Share-based compensation expense	496	402
Amortization of deferred gain on sale leaseback transaction	(57)	(64)
Deferred income taxes	26	168
Income tax benefit related to other comprehensive income	0	(213)
Changes in operating assets and liabilities:
Trade accounts receivable, net	270	(3,028)
Prepaid expenses and other assets	(1,561)	838
Accounts payable	1,441	(218)
Accrued and other liabilities	46	(1,080)
Net cash provided by (used in) operating activities	522	(1,334)
Investing Activities
Proceeds from note receivable	0	159
Purchases of property, plant and equipment	(3,509)	(2,354)
Cash paid for prior period acquisitions of businesses	(234)	(199)
Net cash used in investing activities	(3,743)	(2,394)
Financing Activities
Proceeds from stock option exercises	0	24
Proceeds from the issuance of common stock	52	27
Proceeds from line of credit	66,082	41,760
Principal payments on line of credit	(61,436)	(42,254)
Principal payments on long-term debt	(92)
Principal payments on capital lease obligations	(199)	(51)
Net cash provided by (used in) financing activities	4,407	(494)
Effect of exchange rate changes on cash	(27)	42
Net increase (decrease) in cash and cash equivalents	1,159	(4,180)
Cash and cash equivalents at beginning of period	5,306	10,989
Cash and cash equivalents at end of period	6,465	6,809
Supplemental Disclosure of Noncash Investing Activities
Assets acquired through capital lease	$ 4,840

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NET LOSS PER SHARE

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

NET LOSS PER SHARE

NET LOSS PER SHARE

Basic net loss per common share is computed on the basis of our weighted average number of common shares outstanding.  Diluted earnings per share is computed on the basis of our weighted average number of common shares outstanding plus the effect of dilutive stock options and non-vested restricted stock using the treasury stock method.  Securities totaling 2,493,720 and 2,359,409 for the three months ended March 31, 2015 and 2014, respectively, have been excluded from loss per share because their effect would have been anti-dilutive.

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SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Information about our reportable segments, which correspond to the geographic areas in which we operate, for the three months ended March 31, 2015 and 2014 is as follows:

	For the Three Months Ended March 31,
	2015		2014
Revenue:
Domestic	$	35,624	$	33,307
Asia Pacific	20,331		21,052
Latin America	7,698		8,850
Total	$	63,653	$	63,209
Gross profit:
Domestic	$	2,407	$	4,543
Asia Pacific	2,522		3,604
Latin America	1,188		71
Total	$	6,117	$	8,218

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SHARE-BASED COMPENSATION (Textuals (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Stock Awards Activity [Line Items]
Total compensation cost	$ 496	$ 402
Stock Options
Stock Awards Activity [Line Items]
Total unrecognized compensation cost	$ 1,942
Weighted-average period that cost is expected to be recognized	2 years

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ACQUISITION (Tables)

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

We finalized our purchase price allocation during the three months ended March 31, 2015 and there were no adjustments to the preliminary estimates of fair value assigned at the acquisition date.

	Acquisition Date Fair Value
Customer relationships	$	1,840
Trade name	130
Goodwill	2,135
Total purchase price	$	4,105