Consolidation Of A Variable Interest Entity

9 Months Ended

Sep. 30, 2011

Consolidation Of A Variable Interest Entity [Abstract]

Consolidation Of A Variable Interest Entity

16. CONSOLIDATION OF A VARIABLE INTEREST ENTITY

Syntel Delaware is a 100% subsidiary of Syntel Inc and 49% shareholder of the joint venture (JV) entity State Street Syntel Sourcing (Mauritius) Ltd.,(SSSSML), the other shareholder being an affiliate of State Street Bank. Syntel Delaware has a variable interest in SSSSML as they are entitled to all the profits and solely responsible for all losses incurred by Syntel Mauritius even though it holds only 49% in the Joint Venture entity. Accordingly, Syntel Delaware consolidates the JV entity SSSSML.

The Company's KPO services to State Street Bank and two other clients are provided through the above joint venture between the Company and an affiliate of State Street Bank. Sales of KPO services only to these three clients represented approximately 13.9% and 14.3% of the Company's total revenues for three months ended September 30, 2011 and 2010, respectively and 14.7% and 14.6% for the nine months ended September 30, 2011 and 2010, respectively.