SEGMENT REPORTING

3 Months Ended

Mar. 31, 2013

SEGMENT REPORTING

12. SEGMENT REPORTING

The Company is organized geographically and by business segment. For management purposes, the Company is primarily organized on a worldwide basis into four business segments:

• Applications Outsourcing

• Knowledge Process Outsourcing (“KPO”)

• e-Business and

• TeamSourcing

These segments are the basis on which the Company reports its primary segment information to management. Management allocates all corporate expenses among the segments. No balance sheet/identifiable assets data is presented since the Company does not segregate its assets by segment. Financial data for each segment for the three months ended March 31, 2013 and 2012 is as follows:

	Three Months Ended March 31,
	2013		2012
	(in thousands)
Revenues:
Applications Outsourcing	$	144,911	$	127,288
KPO		29,351		26,420
e-Business		11,470		13,529
TeamSourcing		3,374		3,507
		189,106		170,744
Gross Profit:
Applications Outsourcing		53,240		48,046
KPO		18,629		16,715
e-Business		4,696		5,260
TeamSourcing		1,212		1,431
		77,777		71,452
Selling, general and administrative expenses		25,904		26,946
Income from operations	$	51,873	$	44,506

During the three months ended March 31, 2013, American Express Corp. and State Street Bank each contributed revenues in excess of 10% of total consolidated revenues. Revenue from American Express Corp. and State Street Bank was $51.9 million and $31.4 million, respectively, during the three months ended March 31, 2013, contributing approximately 27.4% and 16.6%, respectively, of total consolidated revenues. The revenue from American Express Corp. was generated primarily in the Application Outsourcing segment with some in the KPO segment. Approximately 76% of the revenue from State Street Bank was generated in the KPO segment and 24% was generated in the Application Outsourcing segment. The corresponding revenue for the three months ended March 31, 2012 from American Express Corp. and State Street Bank was $45.4 million and $28.9 million, respectively, contributing approximately 26.6% and 16.9%, respectively, of total consolidated revenues. The entire revenue from American Express Corp. was generated in the Application Outsourcing segment. Approximately 74% of the revenue from State Street Bank was generated in the KPO segment and 26% in the Application Outsourcing segment. At March 31, 2013 and December 31, 2012, accounts receivable from American Express Corp. were $16.1 million and $17.1 million, respectively. Accounts receivable from State Street Bank were $9.6 million and $9.8 million at March 31, 2013 and December 31, 2012, respectively.