SEGMENT REPORTING

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2013 and 2012 is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(in thousands)				(in thousands)
Revenues:
Applications Outsourcing	$	154,630	$	133,931	$	299,541	$	261,219
KPO		31,422		27,222		60,773		53,642
e-Business		13,077		14,119		24,547		27,648
TeamSourcing		3,372		3,707		6,746		7,214
		$202,501		$178,979		$391,607		$349,723
Gross Profit:
Applications Outsourcing		57,319		50,827		110,559		98,873
KPO		19,698		16,484		38,327		33,199
e-Business		5,328		5,076		10,024		10,336
TeamSourcing		1,236		1,471		2,448		2,902
		83,581		73,858		161,358		145,310
Selling, general and administrative expenses		19,072		18,931		44,976		45,877
Income from operations	$	64,509	$	54,927	$	116,382	$	99,433

During the three and six months ended June 30, 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 $52.7 million and $32.1 million, respectively, during the three months ended June 30, 2013, contributing approximately 26.0% and 15.9%, respectively, of total consolidated revenues. The revenue from American Express Corp. was generated, primarily in the Application Outsourcing segment and some in the KPO segment. Approximately 77% of the revenue from State Street Bank was generated in the KPO segment and 23% was generated in the Application Outsourcing segment. The corresponding revenue for the three months ended June 30, 2012 from American Express Corp. and State Street Bank was $48.2 million and $30.2 million, respectively, contributing approximately 26.9% and 16.9%, respectively, of total consolidated revenues. During the six months ended June 30, 2013, revenue from American Express Corp. and State Street Bank was $104.6 million and $63.5 million, respectively, contributing approximately 26.7% and 16.2%, respectively, of total consolidated revenues. The revenue from American Express Corp. was generated, primarily in the Application Outsourcing segment and some in the KPO segment. Approximately 77% of the revenue from State Street Bank was generated in the KPO segment and 23% in the Application Outsourcing segment. The corresponding revenues for the six months ended June 30, 2012 from American Express Corp. and State Street Bank was $93.6 million and $59.2 million, respectively, contributing approximately 26.8% and 16.9%, 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 74% of the revenue from State Street Bank was generated in the KPO segment and 26% in the Application Outsourcing segment. At June 30, 2013 and December 31, 2012, accounts receivable from American Express Corp. were $19.1 million and $17.1 million, respectively. Accounts receivable from State Street Bank were $8.1 million and $9.8 million, respectively, as of June 30, 2013 and December 31, 2012.