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Unrealized gain/(loss) on effective cash flow hedges, net of taxes $5,821, $1,734 and $109, respectively

$ 48,888

$ 61,733

$ 51,565

Other comprehensive income:

13,981

3,395

Foreign currency translation adjustment

18,894

(9,236)

(12,510)

Retirement benefits, net of taxes $164, ($204) and $22, respectively

1,109

(439)

584

Reclassification adjustments

Realized loss/(gain) on cash flow hedges, net of taxes ($2,110), ($1,190) and ($49), respectively(1)

^[1]

(4,789)

(1,479)

(71)

Retirement benefits, net of taxes $104, $63 and $53, respectively(2)

^[2]

152

158

Total other comprehensive income/(loss)

29,347

(7,732)

(11,816)

Total comprehensive income

$ 78,235

$ 54,001

$ 39,749

[1]	{F\|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjE4MjMzOGNjMDZhZDQ5MmM5MmQ3ZGZjZmU4MmZlYTBifFRleHRTZWxlY3Rpb246RERBNzRDRkREREJENThDMTgxNzI3OThBMDFGRDRDNTgM}
[2]	These are reclassified to net income and are included in the computation of net periodic pension costs in the consolidated statements of income. See Note 18 to the consolidated financial statements.

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Unrealized gain/(loss) on effective cash flow hedges, tax	$ 5,821	$ 1,734	$ 109
Retirement benefits, tax	164	(204)	22
Realized (gain)/loss on cash flow hedges, tax	(2,110)	(1,190)	(49)
Retirement benefits, tax	$ 104	$ 63	$ 53

Consolidated Statements of Equity - USD ($)
$ in Thousands

Total

Common Stock

Additional Paid-in Capital

Retained Earnings

Accumulated Other Comprehensive Income/(Loss)

Treasury Stock

Non - Controlling Interest

Beginning balance (in shares) at Dec. 31, 2014

34,203,352

(1,297,885)

Beginning balance at Dec. 31, 2014

$ 419,158

$ 34

$ 233,173

$ 269,424

$ (55,509)

$ (27,964)

$ 0

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock issued on exercise/vesting of equity awards (in shares)

577,849

Stock issued on exercise/vesting of equity awards

3,375

$ 1

3,374

Stock based compensation

16,047

Excess tax benefit from stock based compensation

1,458

Acquisition of treasury stock (in shares)

(392,093)

Acquisition of treasury stock

(14,195)

$ (14,195)

Non-controlling interest

179

Other comprehensive income

(11,816)

Ending balance (in shares) at Dec. 31, 2015

51,565

34,781,201

(1,689,978)

Ending balance at Dec. 31, 2015

465,771

$ 35

254,052

320,989

(67,325)

$ (42,159)

179

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock issued on exercise/vesting of equity awards (in shares)

918,618

Stock issued on exercise/vesting of equity awards

6,499

$ 1

6,498

Stock based compensation

19,770

Excess tax benefit from stock based compensation

4,326

Acquisition of treasury stock (in shares)

(381,732)

Acquisition of treasury stock

(18,203)

$ (18,203)

Non-controlling interest

Other comprehensive income

(7,732)

Ending balance (in shares) at Dec. 31, 2016

$ 61,733

61,733

33,628,109

35,699,819

(2,071,710)

Ending balance at Dec. 31, 2016

$ 532,178

$ 36

284,646

382,722

(75,057)

$ (60,362)

193

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock issued on exercise/vesting of equity awards (in shares)

^[1]

1,453

5,999

(4,546)

Adjusted equity balance

533,631

$ 36

290,645

378,176

(75,057)

$ (60,362)

193

1,090,932

Stock issued on exercise/vesting of equity awards

8,561

$ 1

8,560

Stock based compensation

23,041

Acquisition of treasury stock (in shares)

(830,308)

Acquisition of treasury stock

(43,454)

$ (43,454)

Non-controlling interest

Other comprehensive income

29,347

Ending balance (in shares) at Dec. 31, 2017

$ 48,888

48,888

33,888,733

36,790,751

(2,902,018)

Ending balance at Dec. 31, 2017

$ 600,045

$ 37

$ 322,246

$ 427,064

$ (45,710)

$ (103,816)

$ 224

[1]	Refer note 2(o) to consolidated financial statements for details.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 48,888	$ 61,733	$ 51,565
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	38,984	34,580	31,465
Stock-based compensation expense	23,041	19,770	16,047
Unrealized foreign exchange (gain)/loss	1,523	(1,001)	(3,798)
Deferred income tax (benefit)/expense	731	(3,384)	2,238
Excess tax benefit from stock-based compensation	0	(4,326)	(1,458)
Change in fair value of earn-out consideration	0	(4,060)	0
Allowance for doubtful accounts receivable	2,816	0	0
Others, net	252	(107)	(278)
Change in operating assets and liabilities (net of effect of acquisitions):
Restricted cash	(19)	(2,137)	(787)
Accounts receivable	(20,482)	(18,062)	(9,087)
Prepaid expenses and other current assets	218	(5,421)	(3,112)
Accounts payable	1,706	(2,628)	44
Deferred revenue	(6,625)	5,726	2,566
Accrued employee costs	6,391	5,304	8,528
Accrued expenses and other liabilities	6,903	9,080	(4,699)
Advance income tax, net	11,037	437	8,865
Other assets	(2,224)	4,754	(1,408)
Net cash provided by operating activities	113,140	100,258	96,691
Cash flows from investing activities:
Purchase of property and equipment	(35,154)	(25,850)	(25,585)
Investment in equity affiliate	(3,000)	0	0
Business acquisitions (net of cash acquired)	(23,300)	(28,666)	(44,270)
Purchase of investments	(402,721)	(182,471)	(129,050)
Proceeds from redemption of investments	241,439	182,320	125,365
Net cash used for investing activities	(222,736)	(54,667)	(73,540)
Cash flows from financing activities:
Principal payments on capital lease obligations	(174)	(348)	(720)
Proceeds from borrowings	60,574	0	30,000
Repayments of borrowings	(45,192)	(25,000)	(10,000)
Proceeds from non-controlling interest	0	0	176
Payment of debt issuance costs	(790)	0	(74)
Acquisition of treasury stock	(43,454)	(18,203)	(14,195)
Proceeds from exercise of stock options	8,561	6,499	3,375
Excess tax benefit from stock-based compensation	0	4,326	1,458
Net cash (used for)/provided by financing activities	(20,475)	(32,726)	10,020
Effect of exchange rate changes on cash and cash equivalents	3,711	(5,033)	(4,347)
Net increase/(decrease) in cash and cash equivalents	(126,360)	7,832	28,824
Cash and cash equivalents, beginning of year	213,155	205,323	176,499
Cash and cash equivalents, end of year	86,795	213,155	205,323
Supplemental disclosure of cash flow information:
Cash paid for interest	1,122	1,178	1,188
Cash paid for taxes, net of refund	19,128	15,667	11,505
Assets acquired under capital lease	$ 301	$ 334	$ 215

Nature of operation and organization	12 Months Ended
Nature of operation and organization	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of operation and organization	Nature of operation and organization ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the state of Delaware. ExlService Holdings, together with its subsidiaries (collectively, the “Company”), operates in Business Process Management ("BPM") industry providing operations management services and analytics services that helps businesses enhance revenue growth and improve profitability. Using its proprietary platforms, methodologies and tools, the Company looks deeper to help companies improve global operations, enhance data-driven insights, increase customer satisfaction, and manage risk and compliance. The Company’s clients are located principally in the U.S. and the U.K.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies


(a)	Basis of Preparation and Principles of Consolidation

The accompanying consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“US GAAP”). The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings and all of its subsidiaries and includes the Company's share in the results of its associates.

Accounting policies of the respective individual subsidiary and associate are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under US GAAP.

The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intragroup balances and transactions, and income and expenses arising from intra-group transactions, are eliminated while preparing the said financial statements. The un-realized gains resulting from intra-group transactions are also eliminated. Similarly, the un-realized losses are eliminated, unless the transaction provides evidence as to impairment of the asset transferred.

The Company’s investments in equity affiliate are initially recorded at cost and any excess cost over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee is recognized in the consolidated statements of income.

Non-controlling interest is the equity in a subsidiary not attributable, directly or indirectly, to the parent and it represents the minority partner’s interest in the operation of ExlService Colombia S.A.S. Non-controlling interest consists of the amount of such interest at the date of obtaining control over the subsidiary, and the non-controlling interest's share of changes in equity since that date. The non-controlling interest in the operations for the years ended December 31, 2017, 2016 and 2015 was insignificant and are included under general and administrative expenses in the consolidated statements of income.


(b)	Use of Estimates

The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the related amount of revenue and expenses during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the financial statements include, but are not limited to, allowance for doubtful account receivables, recoverability of service tax receivables, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, assumptions used to calculate stock-based compensation expense, depreciation and amortization periods, purchase price allocation, recoverability of long-term assets including goodwill and intangibles, and estimates to complete fixed price contracts.

In accordance with its policy, the Company reviews the estimated useful lives of its property and equipment on an ongoing basis.


(c)	Foreign Currency Translation

The functional currency of each entity in the Company is its respective local country currency which is also the currency of the primary economic environment in which it operates except for the entities in Mauritius which use the U.S. dollar as its functional currency. Transactions in foreign currencies are initially recorded into functional currency at the rates of exchange prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured into functional currency at the rates of exchange prevailing at the balance sheet date. Non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates. All transaction foreign exchange gains and losses are recorded in the accompanying consolidated statements of income.

The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Resulting translation adjustments are included in accumulated other comprehensive loss in the consolidated balance sheet.


(d)	Revenue Recognition

The Company derives its revenues from operations management and analytics services. Revenues from operations management services are recognized primarily on a time-and-material based, transaction-based, outcome-based, cost-plus and fixed-price basis; revenues from analytics services are recognized primarily on a time-and-material and fixed price basis. The services provided by the Company under its contracts with the customer generally contain one unit of accounting except for the software and related services contracts involving implementation services and post contract maintenance services. In such multiple element arrangements, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Revenues are recognized when the four basic criteria are met; persuasive evidence of an arrangement exists, the sales price is fixed or determinable, services have been performed and collection of amounts billed is reasonably assured.

Revenues under time-and-material, transaction and outcome-based contracts are recognized as the services are performed. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), the Company monitors such service level parameters to determine if any service credits or penalties have been incurred. Revenues are recognized net of any penalties or service credits that are due to a client.

Revenue from Analytics services including modeling, targeting and designing of campaigns and mail marketing including email marketing and other digital solutions is typically recognized on delivery of such campaigns. In respect of arrangements involving subcontracting, in part or whole, of the assigned work, the Company evaluates revenues to be recognized under Accounting Standard Codification ("ASC") topic 605-45, “Revenue recognition - Principal agent considerations”.

Revenues for Company’s fixed-price contracts are recognized using the proportional performance method when the pattern of performance under the contracts can be reasonably determined. The Company estimates the proportional performance of a contract by comparing the actual number of hours or days worked to the estimated total number of hours or days required to complete each engagement. The use of the proportional performance method requires significant judgment relative to estimating the number of hours or days required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed. The Company regularly monitors its estimates for completion of a project and record changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified.

Revenues from the Company's software and related services contracts, which are not significant, are primarily related to maintenance renewals or incremental license fees for additional users. Maintenance revenues are generally recognized on a straight-line basis over the annual contract term. Fees for incremental license fees without any associated services are recognized upon delivery of the related incremental license. To a lesser extent, software and related services contracts may contain software license, related services and maintenance elements as a multiple element arrangement. In such cases, revenue is allocated to maintenance based on the price charged when that element is sold separately (vendor specific objective evidence or “VSOE”). Services related to software licenses are evaluated to determine whether those services are significant or essential to the functionality of the software. When services are significant or considered essential, revenues related to license fee and services are recognized as the services are performed using the percentage of completion method of accounting, under which the total value of revenue is recognized on the basis of the percentage that each contract’s total labor hours to date bears to the total expected labor hours (input method).

The Company accrues revenues for services rendered between the last billing date and the balance sheet date. Accordingly, its accounts receivable include amounts for services, as unbilled accounts receivables, that the Company has performed and for which an invoice has not yet been issued to the client.

The Company defers the revenues and related cost of revenue while a process is under migration and recognizes such revenues and costs ratably over the period during which the related services are expected to be performed. The deferred costs are limited to the amounts of the deferred revenues. Deferred revenue also includes the amount for which the services have been rendered but the other conditions of revenue recognition are not met, for example where the Company does not have the persuasive evidence of the arrangements.

Reimbursements of out-of-pocket expenses received from clients are included as part of revenues. Reimbursements of out-of-pocket expenses included in revenues were $17,982, $21,812 and $18,848 for the years ended December 31, 2017, 2016 and 2015, respectively.


(e)	Cash and Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, surplus funds are invested in highly-rated debt mutual funds, money market accounts and time deposits to reduce its exposure to market risk with regard to these funds.

Restricted cash represents amounts on deposit with banks against bank guarantees issued through banks for equipment imports and for demands against pending income tax assessments (see Note 23 for details). These deposits with banks have maturity dates before and after December 31, 2018. Restricted cash also includes client funds held in dedicated bank accounts.


(f)	Investments

The Company’s investments consist of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on such investments is included in interest income. Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments.

The Company's mutual fund investments are in debt and money market funds which invest in instruments of various maturities in India. These investments are accounted for in accordance with the fair value option under ASC topic 825-10 and change in fair value is included in interest and other income. The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in interest and other income.


(g)	Accounts Receivable

Accounts receivable are recorded net of allowances for doubtful accounts. Allowances for doubtful accounts are established through the evaluation of the accounts receivable aging and prior collection experience, current market conditions, clients’ financial condition and the amount of receivables in dispute to ascertain the ultimate collectability of these receivables. As of December 31, 2017 and 2016, the Company had $2,923 and $241 of allowance for doubtful accounts, respectively.

Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts. As of December 31, 2017 and 2016, the Company had $49,125 and $34,785 of unbilled accounts receivable, respectively.


(h)	Property and equipment

Property and equipment are stated at cost less accumulated depreciation and impairment. Equipment held under capital leases are capitalized at the commencement of the lease at the lower of present value of minimum lease payments at the inception of the leases or its fair value. Advances paid towards acquisition of property and equipment and the cost of property and equipment not yet placed in service before the end of the reporting period are classified as capital work in progress.

Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Depreciation and amortization on equipment held under capital leases and leasehold improvements are computed using the straight-line method over the shorter of the assets’ estimated useful lives or the lease term.



	(in years)
Assets:
Network equipment and computers	3-5 years
Software	3-5 years
Leasehold improvements	3-8 years
Office furniture and equipment	3-8 years
Motor vehicles	2-5 years
Buildings	30 years


(i)	Software Development Costs

Costs incurred for developing software or enhancements to the existing software products to be sold and/or used for internal use are capitalized once preliminary project stage is complete and technological feasibility, as defined in ASC 985 and ASC 350, has been established, i.e., it is probable that the software will be used as intended. Technological feasibility is established upon completion of a detailed design program or, in its absence, completion of a working model. Costs that qualify as software development costs include (i) external direct costs of materials and services utilized in developing or obtaining computer software, (ii) compensation and related benefits for employees who are directly associated with the software project, and (iii) interest costs (if any) incurred while developing the computer software. The capitalized costs are amortized on a straight-line basis over the estimated useful life. Costs associated with preliminary project stage activities, training, maintenance and all post-implementation stage activities are expensed as incurred.


(j)	Business Combinations, Goodwill and Other Intangible Assets

ASC topic 805, “Business Combinations”, requires that the purchase method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Contingent consideration is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is re-measured to fair value as of each reporting date until the contingency is resolved. Changes in fair value are recognized in earnings. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Under ASC topic 350, “Intangibles-Goodwill and Other”, all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition related costs are expensed as incurred under general and administrative expenses.

Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. Recoverability of goodwill is evaluated using a two-step process.

The first step involves a comparison of the fair value of a reporting unit with its carrying value. The fair value of the reporting unit is measured by discounting estimated future cash flows. If the carrying amount of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the process involves a comparison of the implied fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal to the excess. Goodwill of a reporting unit is tested for impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount.

Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period.

The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method:



Customer relationships	3-15 years
Leasehold benefits	3-8 years
Developed technology	5-10 years
Non-compete agreements	1-5 years
Trade names and trademarks	3-10 years


(k)	Investment in equity affiliate

Investments in equity affiliate are initially recorded at cost and any excess cost over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee is recognized in the consolidated statements of income. The Company periodically reviews the carrying value of its investment to determine if there has been any other than temporary decline in carrying value. The investment balance is increased or decreased for cash contribution and distributions to or from, respectively, these investee.


(l)	Impairment of long-lived assets

Long-lived assets, including intangible assets, to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. The Company determines fair value by using a discounted cash flow approach.


(m)	Derivative Financial Instruments

In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates, and not for speculative trading purposes. These derivative contracts are purchased within the Company’s policy and are with counterparties that are highly rated financial institutions.

The Company hedges forecasted transactions that are subject to foreign exchange exposure with foreign currency exchange contracts that qualify as cash flow hedges. Changes in the fair value of these cash flow hedges are recorded as a component of accumulated other comprehensive income/(loss), net of tax, until the hedged transactions occurs. The Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption, effective January 1, 2017, the resultant foreign exchange gain/(loss) upon settlement of cash flow hedges are recorded in the consolidated statements of income along with the underlying hedged item in the same income statement line as either part of “Cost of revenue”, “General and administrative expenses”, “Selling and marketing expenses”, “Depreciation and amortization”, as applicable.

Prior to January 1, 2017, the resultant foreign exchange gain/(loss) on settlement of cash flow hedges and changes in the fair value of cash flow hedges deemed ineffective have been recorded in “Foreign exchange gain, net” in the consolidated statements of income.

The Company also uses derivatives instruments consisting of foreign currency exchange contracts to economically hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the functional currency. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss).

The Company evaluates hedge effectiveness of cash flow hedges at the time a contract is entered into as well as on an ongoing basis. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings.


(n)	Employee Benefits

Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are accrued in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. Prior service cost, if any, resulting from an amendment to a plan is recognized and amortized over the remaining period of service of the covered employees.

The Company recognizes its liabilities for compensated absences dependent on whether the obligation is attributable to employee services already rendered, relates to rights that vest or accumulate and payment is probable and estimable.


(o)	Stock-Based Compensation

The Company recognizes stock-based compensation expense in the consolidated financial statements for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards. The Company recognizes these compensation costs over the requisite service period of the award. Forfeitures are accounted when the actual forfeitures occur.

Under the Company’s 2015 Amendment and Restatement of the 2006 Omnibus Award Plan (the “2015 Plan”), the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs cliff vest based on a revenue target ("PU") at the end of a three-year period. The remaining 50% vest based on a market condition (“MUs”) that is contingent on meeting or exceeding the total shareholder return relative to a group of peer companies specified under the program, measured over a three-year performance period. The award recipient may earn up to two hundred percent (200%) of the PRSUs granted based on the actual achievement of both targets.

The fair value of each PU was determined based on the market price of one common share of the Company on the date of grant, and the associated compensation expense was calculated on the basis that performance targets to receive 100% of the PUs is probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The expense related to the unvested PUs as of December 31, 2017 was based on the Company's assessment that the performance criteria for these grants would be met at the 100% performance target level during the respective years of vesting.

The grant date fair value for the MUs was determined using a Monte Carlo simulation model and the related compensation expense is expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved.

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718). ASU No. 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the Statement of Cash Flows. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company adopted this ASU effective January 1, 2017. The following summarizes the effects of the adoption on the Company's consolidated financial statements:

Income taxes - Upon adoption of this standard, all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The Company also recognizes excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. As a result, the Company recognized discrete adjustments to income tax expense for the year ended December 31, 2017 in the amount of $9,797 related to excess tax benefits. No adjustment is recorded for any windfall benefits previously recorded in Additional Paid-In Capital.

Forfeitures - Prior to adoption, stock-based compensation expense was recognized on a straight line basis, net of estimated forfeitures, such that expense was recognized only for stock-based awards that are expected to vest. A forfeiture rate was estimated annually and revised, if necessary, in subsequent periods if actual forfeitures differed from initial estimates. Upon adoption, the Company will no longer apply a forfeiture rate and instead will account for forfeitures as they occur. The Company has applied the modified retrospective adoption approach as of January 1, 2017 and has recognized a cumulative-effect adjustment to reduce additional paid-in-capital of $5,999 and retained earnings of $4,546 (net of deferred tax effect of $1,453).

Statements of Cash Flows - The Company historically accounted for excess tax benefits on the statement of cash flows as a financing activity. Upon adoption of this standard, excess tax benefits are classified along with other income tax cash flows as an operating activity. The Company has elected to adopt this portion of the standard on a prospective basis beginning in 2017 and accordingly prior periods have not been adjusted.

Earnings Per Share - The Company uses the treasury stock method to compute diluted earnings per share, unless the effect would be anti-dilutive. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share.


(p)	Income Taxes

The Company accounts for income taxes using the asset and liability method of accounting for income taxes. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statement of income in the period in which the change is identified. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged.


(q)	Financial Instruments and Concentration of Credit Risk

Financial Instruments. For certain financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts payable, accrued expenses, and other current liabilities, recorded amounts approximate fair value due to the relatively short maturity periods of such instruments.

Concentration of Credit Risk. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, time deposits, mutual fund investments, accounts receivable and derivative financial instruments. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. Pursuant to the Company’s investment policy, its surplus funds are maintained as cash or cash equivalents and are invested in highly-rated mutual funds, money market accounts and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. The Company’s exposure to credit risk on account receivable is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. To mitigate this risk the Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.


(r)	Lease Obligations

Leases under which the Company assumes substantially all risks and rewards of the ownership are classified as capital lease. When acquired, such assets are capitalized at fair value or present value of minimum committed lease payments at the inception of the lease, whichever is lower.

The Company leases its office facilities under non-cancellable operating lease agreements. Office facilities subject to an operating lease and the related lease payments are not recorded on the Company’s balance sheet. Lease payments under operating lease are recognized as an expense on a straight line basis in the consolidated statement of income over the lease term.


(s)	Government Grants

Government grants related to income are recognized as a reduction of expenses in the consolidated statement of income when there is a reasonable assurance that the entity will comply with the conditions attached to the grant and that the grants will be received.


(t)	Earnings per share

Basic earnings per share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards except where the results would be anti-dilutive.


(u)	Commitments and contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred.


(v)	Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, “Revenue from Contracts with Customers” (Topic 606). This standard replaces existing revenue recognition guidance with a comprehensive revenue measurement and recognition standard and expanded disclosure requirements. The ASU also includes guidance regarding the accounting for contract acquisition costs, including sales commissions. The Company will adopt the new standard as of January 1, 2018 using the modified retrospective transition method, applied to those contracts which were not completed as of that date. Upon adoption, the Company will recognize the cumulative effect of adopting this guidance as an adjustment to our opening balance of retained earnings. Prior periods will not be retrospectively adjusted.

During the year the Company has worked to assess all potential impacts of the new standard and prepare for adoption. As part of this process, the Company closely monitored FASB activity and other relevant information on specific interpretative issues. During the adoption process, findings and progress of the project were regularly reported to senior management and the Audit Committee. We expect that adoption of Topic 606 will not have a material impact to our consolidated financial statements, including the presentation of revenues in our consolidated statements of income.

The key area impacted upon adoption of the new standard relates to the accounting for commissions costs. Specifically, under the new standard a portion of sales commissions cost will be recorded as an asset and recognized as an operating expense over the time period that the Company expects to recover the costs. Currently, the Company expenses sales commission costs as incurred.

Additionally, some contracts contain provisions with regard to “service levels” to be achieved by the Company, failing which or exceeding which the Company is liable to make payments to the customer or receive performance bonuses from the customers. Such service level payment or bonuses need to be estimated at contract inception and accounted for in revenue. Based on an evaluation of the service levels penalties for past periods, the Company believes that the impact of this clause will not be significant.

We have identified changes to the Company systems processes and internal control to meet the standard reporting and disclosure requirement.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU No. 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU No. 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU No. 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and the implementation approach to be used.

In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses, which require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is to be deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The amendment should be applied through a modified retrospective approach. Early adoption as of the fiscal years beginning after December 15, 2018 is permitted. The adoption of ASU No. 2016-13 is not expected to have a material effect on the Company's consolidated financial statements.

In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments apply to all entities that are required to present a statement of cash flows under Topic 230. The amendments are an improvement to GAAP because they provide guidance for each of the eight issues, thereby reducing the current and potential future diversity in practice. The amendments are effective for fiscal years beginning after December 15, 2017 and interim periods within those annual periods and should be applied using a retrospective transition method to each period presented. The Company does not expect the adoption of this ASU to have a material effect on its financial position or results of operations.

In November 2016, FASB issued ASU No. 2016-18, Statement of cash flows - Restricted cash. The amendments apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under Topic 230. The amendments in this update require that a statement of cash flows should explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments are effective for fiscal years beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted with an adjustment reflected as of the beginning of the fiscal year in which the amendment is adoption. The Company does not expect the adoption of this ASU to have a material effect on the presentation of its statement of cash flows.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350), which eliminates Step 2 from the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017 and should be applied prospectively. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements.

In March, 2017, FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. The ASU amends ASC 715, Compensation — Retirement Benefits, to require employers that present a measure of operating income in their statement of income to include only the service cost component of net periodic pension cost and net periodic post-retirement benefit cost in operating expenses (together with other employee compensation costs). The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in non-operating expenses. The update also stipulates that only the service cost component of net benefit cost is eligible for capitalization. The amendments are effective for fiscal years beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

In May 2017, FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. Modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. The amendments in this ASU are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this ASU should be applied prospectively to an award modified on or after the adoption date. The Company will adopt this guidance for modification that occur after January 1, 2018.

In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in their financial statements. This includes simplifying how hedge results are presented and disclosed both on the face of the financial statements and in the footnotes, and provides relief around the documentation and assessment requirements. The amendments are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption being permitted. The Company has early adopted the guidance beginning January 1, 2017. The amendments of this ASU have an impact on the way the Company has been presenting the impact of hedge ineffectiveness and the settlement gain or loss for cash flow hedges in the prior years. The amended presentation have been applied prospectively from the date of adoption, whereby the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income. Such amount, upon settlement of cash flow hedges, are presented to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. See Note 15 to consolidated financial statements for details.

Segment & Geographical Information

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment & Geographical Information

The Company operates in the BPM industry and is a provider of operations management and analytics services. The Company has eight operating segments which are strategic business units that align its products and services with how it manages its business, approaches its key markets and interacts with its clients. Six of those operating segments provide BPM or “operations management” services, which the company organizes into industry-focused operating segments (Insurance, Healthcare, Travel, Transportation and Logistics, Banking and Financial Services, and Utilities) and one “capability” operating segment (Finance and Accounting) that provides services to clients in our industry-focused segments as well as clients across other industries. In each of these six operating segments, the Company provides operations management services, which typically involve transfer to the Company of business operations of a client, after which it administers and manages those operations for its client on an ongoing basis. The remaining two operating segments are Consulting, which provides industry-specific transformational services related to operations management services, and the Analytics operating segment, which provides services that focus on driving improved business outcomes for clients by generating data-driven insights across all parts of their business.

The Company presents information for the following reportable segments:


•	Insurance


•	Healthcare


•	Travel, Transportation and Logistics (“TT&L”)


•	Finance and Accounting (“F&A”),


•	Analytics, and


•	All Other (consisting of the Company's remaining operating segments which includes the Banking and Financial services, Utilities and Consulting operating segments).

For the year ended December 31, 2015, the Company previously reported and presented two reportable segments: Operations Management (which included Insurance, Healthcare, Travel, Transportation and Logistics, Finance and Accounting, Banking and Financial services, Utilities and Consulting operating segments) and Analytics.

Segment information for all prior period presented herein has been changed to conform to the current presentation. This change in segment presentation does not affect the Company's consolidated statements of income and comprehensive income, balance sheets or statements of cash flows.

The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments.

The Company does not allocate and therefore the CODM does not evaluate other operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented.

The Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption, effective January 1, 2017, the resultant foreign exchange gain/(loss) upon settlement of cash flow hedges are recorded along with the underlying hedged item in the same income statement line as either part of “Cost of revenue”, “General and administrative expenses”, “Selling and marketing expenses”, "Depreciation and Amortization”, as applicable.

Revenues and cost of revenues for each of the years ended December 31, 2017, 2016 and 2015, for each of the reportable segments, are as follows:



	Year ended December 31, 2017
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total

Revenues, net	$	234,794	$	77,013	$	70,951	$	86,527	$	83,082	$	209,943	$	762,310
Cost of revenues (exclusive of depreciation and amortization)	159,529		49,483		41,409		51,445		56,697		137,023		495,586
Gross profit	$	75,265	$	27,530	$	29,542	$	35,082	$	26,385	$	72,920	$	266,724
Operating expenses													194,499
Foreign exchange gain, interest expense and other income, net													12,809
Income tax expense													36,146
Net income													$	48,888



	Year ended December 31, 2016
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total

Revenues, net	$	206,327	$	68,656	$	69,366	$	79,416	$	96,489	$	165,734	$	685,988
Cost of revenues (exclusive of depreciation and amortization)	146,203		44,098		41,962		48,302		61,050		106,341		447,956
Gross profit	$	60,124	$	24,558	$	27,404	$	31,114	$	35,439	$	59,393	$	238,032
Operating expenses													173,810
Foreign exchange gain, interest expense and other income, net													19,662
Income tax expense													22,151
Net income													$	61,733



	Year ended December 31, 2015
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total

Revenues, net	$	199,878	$	55,209	$	62,264	$	78,504	$	110,486	$	122,151	$	628,492
Cost of revenues (exclusive of depreciation and amortization)	134,196		37,224		37,506		46,846		68,307		78,838		402,917
Gross profit	$	65,682	$	17,985	$	24,758	$	31,658	$	42,179	$	43,313	$	225,575
Operating expenses													158,232
Foreign exchange gain, interest expense and other income, net													8,433
Income tax expense													24,211
Net income													$	51,565

Net revenues of the Company by service type, were as follows:



	Year ended December 31,
	2017		2016		2015
BPM and related services ⁽¹⁾	$	552,367	$	520,254	$	506,341
Analytics services	209,943		165,734		122,151
Total	$	762,310	$	685,988	$	628,492

(1) BPM and related services include revenues of the Company's five industry-focused operating segments, one capability operating segment and the consulting operating segment, which provides services related to operations management services.

The Company attributes the revenues to regions based upon the location of its customers.



	Year ended December 31,
	2017		2016		2015
Revenues, net
United States	$	626,336	$	554,945	$	496,418
Non-United States
United Kingdom	108,640		109,905		108,868
Rest of World	27,334		21,138		23,206
Total Non-United States	135,974		131,043		132,074
	$	762,310	$	685,988	$	628,492

Property and equipment, net by geographic area, are as follows:



	As of
	December 31, 2017		December 31, 2016
Property and equipment, net
India	$	39,143	$	23,362
United States	16,371		10,809
Philippines	8,217		11,900
Rest of World	3,026		2,958
	$	66,757	$	49,029

For a discussion of risks attendant to foreign operations, see “Item 1A. Risk Factors - Risks Related to the International Nature of Our Business”.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Data (Unaudited)

Summarized quarterly results for the years ended December 31, 2017 and 2016 are as follows:



	Three months ended 2017									Year ended
	March 31		June 30		September 30		December 31			December 31, 2017

Revenues, net	$	183,033	$	189,057	$	192,345	$	197,875		$	762,310
Gross profit**	$	63,851	$	65,211	$	69,156	$	68,506		$	266,724
Net income/(loss)	$	16,788	$	20,378	$	21,077	$	(9,355	)	$	48,888
Earnings/(loss) per share:
Basic*	$	0.50	$	0.60	$	0.62	$	(0.27	)	$	1.44
Diluted*	$	0.48	$	0.58	$	0.60	$	(0.27	)	$	1.39
Weighted-average number of shares used in computing earnings per share:
Basic*	33,845,560		33,819,320		33,838,374		34,086,711			33,897,916
Diluted*	35,108,882		34,993,226		35,043,987		34,086,711			35,110,210

Stock compensation expense	$	5,956	$	5,107	$	5,708	$	6,270		$	23,041
Amortization of intangibles	$	3,498	$	3,507	$	3,487	$	3,483		$	13,975
	Three months ended 2016									Year ended
	March 31		June 30		September 30		December 31			December 31, 2016

Revenues, net	$	167,036	$	170,478	$	171,200	$	177,274		$	685,988
Gross profit**	$	58,657	$	58,452	$	59,433	$	61,490		$	238,032
Net income	$	13,820	$	16,375	$	16,050	$	15,488		$	61,733
Earnings per share:
Basic*	$	0.41	$	0.49	$	0.48	$	0.46		$	1.84
Diluted*	$	0.40	$	0.47	$	0.46	$	0.45		$	1.79
Weighted-average number of shares used in computing earnings per share:
Basic*	33,380,028		33,621,444		33,624,401		33,638,170			33,566,367
Diluted*	34,351,657		34,510,400		34,675,485		34,714,308			34,563,319

Stock compensation expense	$	5,809	$	4,450	$	4,484	$	5,027		$	19,770
Amortization of intangibles	$	2,715	$	2,718	$	2,848	$	3,592		$	11,873

* Total of quarterly basic and diluted earnings per share and weighted average number of shares used in computing earnings per share will not be equal to year end basic and diluted earnings per share and weighted average number of shares used in computing earnings per share, respectively. For the quarter ended December 31, 2017, 1,206,335 weighted average common shares were considered anti-dilutive and not included in computing diluted earnings per share.

**During the quarter ended December 31, 2017, the Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption effective January 1, 2017, the Company recorded settlement gain/(loss) on cash flow hedges in cost of revenues and operating expenses, as applicable, in the consolidated statements of income for each of the quarters of 2017. See Note 15 for further details.

Earnings Per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted average number of common shares plus the potentially dilutive effect of common stock equivalents issued and outstanding at the reporting date, using the treasury stock method. Stock options, restricted stock and restricted stock units that are anti-dilutive are excluded from the computation of weighted average shares outstanding.

The following table sets forth the computation of basic and diluted earnings per share:



	Year ended December 31,
	2017		2016		2015
Numerators:
Net income	$	48,888	$	61,733	$	51,565
Denominators:
Basic weighted average common shares outstanding	33,897,916		33,566,367		33,298,104
Dilutive effect of stock based awards	1,212,294		996,952		880,236
Diluted weighted average common shares outstanding	35,110,210		34,563,319		34,178,340
Earnings per share:
Basic	$	1.44	$	1.84	$	1.55
Diluted	$	1.39	$	1.79	$	1.51
Weighted average common shares considered anti-dilutive and not included in computing diluted earnings per share	151,961		92,538		73,896

Other Income, net

12 Months Ended

Dec. 31, 2017

Other Nonoperating Income (Expense) [Abstract]

Other Income, net

Other Income, net consists of the following:



	Year ended December 31,
	2017		2016		2015
Interest and dividend income	$	1,625	$	1,673	$	2,904
Gain on mutual fund investments	8,766		8,087		3,902
Change in fair value of earn-out consideration	—		4,060		—
Other, net	1,468		1,588		221
Other income, net	$	11,859	$	15,408	$	7,027

Property and Equipment

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consist of the following:



		As of
	Estimated useful lives (Years)	December 31, 2017			December 31, 2016
Owned Assets:
Network equipment and computers	3-5	$	77,587		$	65,381
Software	3-5	59,325			44,617
Leasehold improvements	3-8	38,857			31,192
Office furniture and equipment	3-8	19,667			15,426
Motor vehicles	2-5	638			580
Buildings	30	1,245			1,171
Land	-	815			766
Capital work in progress	-	9,184			4,964
		207,318			164,097
Less: Accumulated depreciation and amortization		(141,059		)	(115,568		)
		$	66,259		$	48,529
Assets under capital leases:
Leasehold improvements		$	941		$	854
Office furniture and equipment		167			133
Motor vehicles		710			810
		1,818			1,797
Less: Accumulated depreciation		(1,320		)	(1,297		)
		$	498		$	500
Property and Equipment, net		$	66,757		$	49,029

Capital work in progress represents advances paid towards acquisition of property and equipment and cost of property and equipment and internally generated software costs not yet ready to be placed in service.

The depreciation and amortization expense excluding amortization of acquisition-related intangibles recognized in the consolidated statements of income was as follows:



	Year ended December 31,
	2017		2016		2015
Depreciation and amortization expense	$	24,574	$	22,707	$	21,239

Effective January 1, 2017, the depreciation and amortization expenses set forth above includes the effect of the foreign exchange gain/(loss) upon settlement of cash flow hedges, amounting to $435 for the year ended December 31, 2017 (see Note 15 to the consolidated financial statements for further details).

Internally developed software costs, included under Software, was as follows:



	As of
	December 31, 2017		December 31, 2016
Cost	$	2,571	$	2,242
Less : Accumulated amortization	976		336
	$	1,595	$	1,906

During the year ended December 31, 2017, there were no changes in estimated useful lives of property and equipment.

Business Combinations, Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Business Combinations, Goodwill And Intangible Assets Disclosure [Abstract]

Business Combinations, Goodwill and Intangible Assets

Health Integrated, Inc.

On December 22, 2017, a wholly owned subsidiary of the Company entered into an Asset Purchase Agreement to acquire substantially all the assets and assumed certain liabilities of Health Integrated, Inc. (“Health Integrated”), a company based in Tampa, Florida. The initial purchase consideration consisted of $22,577 in cash including working capital adjustment. The purchase agreement allows sellers the ability to earn up to $5,000 as earn-out, based on the achievement of certain performance goals by Health Integrated during the 2018 calendar year. The earn-out has an estimated fair value of $920.

A portion of the purchase consideration otherwise payable was placed into escrow as security for the post-closing working capital adjustments and the indemnification obligations under the Asset Purchase Agreement.

Health Integrated is a Florida-based care management company that provides end-to-end analytics- and behavioral IP-enabled care management services including case management, utilization management, disease management, special needs programs, and multichronic care management on behalf of health plans. Health Integrated serves millions of lives in the Medicaid, Medicare, and dual eligible populations. It is known for its strong capabilities in improving member health status through behavioral change. Accordingly, the Company paid a premium for the acquisition, which is reflected in the goodwill recognized from the purchase price allocation. The acquisition of Health Integrated is included in the Healthcare reportable segment.

The Company has preliminary allocated the purchase price to the net tangible and intangible assets based on their fair values as set forth below:



	Amount
	(In thousands)
Tangible Assets	$	5,945
Liabilities	(7,193		)
Identifiable Intangible Assets:
Customer relationships	6,760
Developed technology	1,510
Trade names and trademarks	570
Goodwill	15,957
Total purchase price	$	23,549

The amount of goodwill recognized from the Health Integrated acquisition is deductible for tax purposes.

The customer relationships from the Health Integrated acquisition are being amortized over the weighted average useful life of 7.0 years and developed technology and trademarks are being amortized over the useful life of 1.0 year and 2.0 years, respectively.

Under ASC topic 805, "Business Combination", the preliminary allocation of the purchase price to the tangible and intangible assets and liabilities acquired may change for a period of up to one year from the date of the acquisition. The Company's purchase accounting for Health Integrated as of December 31, 2017 was incomplete and the Company expects to complete the working capital adjustment and valuation of the tangible assets, intangible assets and liabilities assumed as of the acquisition date during the first quarter of 2018. Accordingly, the Company may adjust the amounts recorded as of December 31, 2017 to reflect the final valuations of assets acquired or liabilities assumed.

During the year ended December 31, 2017, the Company recognized $795 as acquisition related costs. Such amounts are included in general and administrative expenses in the consolidated statements of income. The Company’s results of operations for the year ended December 31, 2017 includes insignificant amount of revenues and net income from its Health Integrated acquisition from December 22, 2017 through December 31, 2017.

Subsequent to December 31, 2017, the Company also issued 4,444 shares of restricted stock units with an aggregate fair value of $275 to certain key employees of Health Integrated, each of whom accepted employment positions with the Company upon consummation of the combination. The restricted stock units vest proportionally over four years and the fair value of these grants will be recognized as compensation expense on a straight-line basis over the vesting term.

Unaudited Pro Forma Financial Information

The following unaudited pro forma results of operations have been prepared using the acquisition method of accounting to give effect to the Health Integrated acquisition as though it occurred on January 1, 2016. The Company completed its acquisition of Health Integrated on December 22, 2017 and accordingly Health Integrated’s operations for the period from December 22, 2017 to December 31, 2017 are included in the Company’s consolidated statement of income. The pro forma amounts reflect certain adjustments, such as depreciation and amortization on assets acquired, interest expense related to liabilities not assumed by the Company and facility costs for certain facilities not acquired. The unaudited pro forma financial information is presented for illustrative purposes only, is based on a preliminary purchase price allocation, and is not necessarily indicative of the results of operations that would have actually been reported had the acquisitions occurred on January 1, 2016, nor is it necessarily indicative of the future results of operations of the combined company.



	Year ended December 31,
	2017		2016
Revenues	$	801,101	$	729,938
Net income	$	46,998	$	58,232
Earnings per share:
Basic	$	1.39	$	1.73
Diluted	$	1.34	$	1.68

Goodwill

The following table sets forth details of the Company’s goodwill balance as of December 31, 2017:



	Insurance			Healthcare		TT&L			F&A			All Other		Analytics		Total
Balance as at January 1, 2016	$	35,824		$	19,276	$	13,278		$	47,891		$	5,326	$	49,940	$	171,535
Acquisitions	2,510			—		—			—			—		13,598		16,108
Currency translation adjustments	(224		)	—		(295		)	(354		)	—		—		(873		)
Balance as at December 31, 2016	$	38,110		$	19,276	$	12,983		$	47,537		$	5,326	$	63,538	$	186,770
Acquisitions	—			15,957		—			—			—		—		15,957
Currency translation adjustments	223			—		696			835			—		—		1,754
Balance as at December 31, 2017	$	38,333		$	35,233	$	13,679		$	48,372		$	5,326	$	63,538	$	204,481

Based on the results of the impairment testing performed during the year ended December 31, 2017, the Company’s goodwill was not impaired. The Company makes every reasonable effort to ensure that it accurately estimates the fair value of the reporting units. However, future changes in the assumptions used to make these estimates could result in an impairment loss.

Intangible Assets

Information regarding the Company’s intangible assets is set forth below:



	As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	82,165	$	(43,667	)	$	38,498
Leasehold benefits	2,888		(2,596		)	292
Developed technology	15,835		(8,749		)	7,086
Non-compete agreements	2,045		(1,780		)	265
Trade names and trademarks	5,951		(4,034		)	1,917
	$	108,884	$	(60,826	)	$	48,058
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—		$	900
Total intangible assets	$	109,784	$	(60,826	)	$	48,958



	As of December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	75,181	$	(32,968	)	$	42,213
Leasehold benefits	2,715		(2,247		)	468
Developed technology	14,186		(6,468		)	7,718
Non-compete agreements	2,045		(1,612		)	433
Trade names and trademarks	5,360		(3,322		)	2,038
	$	99,487	$	(46,617	)	$	52,870
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—		$	900
Total intangible assets	$	100,387	$	(46,617	)	$	53,770

The amortization expenses is as follows:



	Year ended December 31,
	2017		2016		2015
Amortization expense	$	13,975	$	11,873	$	10,226

The remaining weighted average life of intangible assets is as follows:



	(in years)
Customer relationships	5.36
Leasehold benefits	1.41
Developed technologies	3.07
Non-compete agreements	1.69
Trade names and trademarks (Finite lived)	4.29



Estimated amortization of intangible assets during the year ending December 31:
2018	$	15,249
2019	12,508
2020	5,086
2021	4,021
2022	3,213
2023 and thereafter	7,981
Total	$	48,058

Investment in equity affiliate	12 Months Ended
Investment in equity affiliate	Dec. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]
Investment in equity affiliate	Investment in equity affiliate On December 12, 2017, the Company acquired preferred stock in Corridor Platform Inc. (“Corridor”), a big data credit risk management platform for $3,000. The Company has determined that based on its ownership interest and other rights, Corridor is an equity affiliate. The Company has the right and option to acquire additional preferred stock from Corridor as per the terms of the agreement. The Company's proportionate share of net loss of Corridor for the period December 12, 2017 to December 31, 2017 was insignificant.

Other current assets

12 Months Ended

Dec. 31, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other current assets

Other current assets consists of the following:



	As of
	December 31, 2017		December 31, 2016
Derivative instruments	$	10,938	$	3,324
Advances to suppliers	2,451		1,091
Receivables from statutory authorities	7,598		11,870
Others	8,595		4,883
Other current assets	$	29,582	$	21,168

Accrued expenses and other current liabilities

12 Months Ended

Dec. 31, 2017

Accounts Payable and Accrued Liabilities, Current [Abstract]

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consists of the following:



	As of
	December 31, 2017		December 31, 2016
Accrued expenses	$	43,235	$	30,690
Derivative instruments	555		1,430
Client liability account	8,982		4,005
Others	8,594		7,139
Accrued expenses and other current liabilities	$	61,366	$	43,264

Non-current liabilities

12 Months Ended

Dec. 31, 2017

Liabilities, Noncurrent [Abstract]

Non-current liabilities

Non-current liabilities consists of the following:



	As of
	December 31, 2017		December 31, 2016
Derivative instruments	$	322	$	828
Unrecognized tax benefits	892		3,640
Deferred rent	8,176		7,237
Retirement benefits	3,377		1,977
Others	3,435		1,137
Non-current liabilities	$	16,202	$	14,819

Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss consists of amortization of actuarial gain/(loss) on retirement benefits and changes in the cumulative foreign currency translation adjustments. In addition, the Company enters into foreign currency exchange contracts, which are designated as cash flow hedges in accordance with ASC No. 815. Changes in the fair values of contracts are recognized in other comprehensive income on the Company's consolidated balance sheet until the settlement of those contracts. The balances as of December 31, 2017 and 2016 are as follows:



	As of
	December 31, 2017			December 31, 2016
Cumulative currency translation adjustments	$	(58,405	)	$	(77,299	)
Unrealized gain on cash flow hedges, net of taxes of $4,918 and $1,207	11,932			2,740
Retirement benefits, net of taxes of ($74) and ($342)	763			(498		)
Accumulated other comprehensive loss	$	(45,710	)	$	(75,057	)

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

ASC topic 820, “Fair Value Measurements and Disclosures ” ("ASC No. 820") defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk.

ASC No. 820 establishes a three-level hierarchy of fair value measurements based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels:


•	Level 1—Quoted prices for identical instruments in active markets;


•	Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and


•	Level 3—Valuations derived from valuation techniques in which one or more significant inputs are unobservable.

Assets and Liabilities Measured at Fair Value

The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of December 31, 2017 and 2016. The table excludes accounts receivable, accounts payable and accrued expenses for which fair values approximate their carrying amounts.



As of December 31, 2017	Level 1		Level 2		Level 3		Total
Assets
Money market and mutual funds*	$	162,906	$	—	$	—	$	162,906
Derivative financial instruments	—		18,298		—		18,298
Total	$	162,906	$	18,298	$	—	$	181,204
Liabilities
Derivative financial instruments	$	—	$	877	$	—	$	877
Fair value of earn-out consideration	—		—		920		920
Total	$	—	$	877	$	920	$	1,797

As of December 31, 2016	Level 1		Level 2		Level 3		Total
Assets
Money market and mutual funds*	$	—	$	—	$	—	$	—
Derivative financial instruments	—		6,318		—		6,318
Total	$	—	$	6,318	$	—	$	6,318
Liabilities
Derivative financial instruments	$	—	$	2,258	$	—	$	2,258
Total	$	—	$	2,258	$	—	$	2,258

* Represents short-term investments carried on fair value option under ASC 825 "Financial Instruments" as of December 31, 2017

Derivative Financial Instruments: The Company’s derivative financial instruments consist of foreign currency forward exchange contracts. Fair values for derivative financial instruments are based on independent sources including highly rated financial institutions and are classified as Level 2. See Note 15 for further details.

Fair value of earn-out consideration: The fair value measurement of earn-out consideration is determined using Level 3 inputs. The Company’s earn-out consideration represents a component of the total purchase consideration for its acquisition of Health Integrated. The measurement is calculated using unobservable inputs based on the Company’s own assessment of achievement of certain performance goals by Health Integrated during the 2018 calendar year. The Company estimated the fair value of the earn-out consideration to be $920, based on expected probability method.

Derivatives and Hedge Accounting

12 Months Ended

Dec. 31, 2017

Derivatives and Hedge Accounting

The Company uses derivative instruments and hedging transactions to mitigate exposure to foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchanges rates. The Company’s derivative financial instruments are largely forward foreign exchange contracts that are designated as effective hedges and that qualify as cash flow hedges under ASC No. 815. The Company had outstanding cash flow hedges totaling $300,757 as of December 31, 2017 and $218,545 as of December 31, 2016.

Changes in the fair value of these cash flow hedges are recorded as a component of accumulated other comprehensive income / (loss), net of tax, until the hedged transactions occurs. The Company early adopted ASU 2017-12, Derivative and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption, effective January 1, 2017, the resultant foreign exchange gain/(loss) are recorded along with the underlying hedged item in the same line of consolidated statements of income as either part of “Cost of revenue”, “General and administrative expenses”, “Selling and marketing expenses”, Depreciation and amortization”, as applicable.

Prior to January 1, 2017, the resultant foreign exchange gain/(loss) on settlement of cash flow hedges and changes in the fair value of cash flow hedges deemed ineffective were recorded in “Foreign exchange gain, net” in the consolidated statements of income.

The Company also enters into foreign currency forward contracts to economically hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currency. These derivatives do not qualify as fair value hedges under ASC No. 815. Changes in the fair value of these derivatives are recognized in the consolidated statement of income and are included in foreign exchange gain/(loss). The Company’s primary exchange rate exposure is with the Indian Rupee, the U.K. pound sterling and the Philippine peso. The Company also has exposure to Colombian pesos, Czech Koruna, the Euro, South African ZAR and other local currencies in which it operates. Outstanding foreign currency forward contracts amounted to $98,967 and GBP 17,947 as of December 31, 2017 and amounted to $63,980 and GBP 17,974 as of December 31, 2016.

The Company estimates that approximately $10,411 of net derivative gains included in accumulated other comprehensive loss (“AOCI”) could be reclassified into earnings within the next twelve months based on exchange rates prevailing as of December 31, 2017. At December 31, 2017, the maximum outstanding term of the cash flow hedges was 45 months.

The Company evaluates hedge effectiveness at the time a contract is entered into as well as on an ongoing basis. For hedging positions that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related amounts recorded in equity are reclassified to earnings.

The following tables set forth the fair value of the foreign currency exchange contracts and their location on the consolidated financial statements:



Derivatives designated as hedging instruments :	As of
Foreign currency exchange contracts	December 31, 2017		December 31, 2016
Other current assets	$	10,892	$	3,211
Other assets	$	7,360	$	2,994
Accrued expense and other current liabilities	$	481	$	1,430
Other non-current liabilities	$	322	$	828

Derivatives not designated as hedging instruments :	As of
Foreign currency exchange contracts	December 31, 2017		December 31, 2016
Other current assets	$	46	$	113
Accrued expense and other current liabilities	$	74	$	—

The following table set forth the effect of foreign currency exchange contracts in the consolidated statements of income and accumulated other comprehensive loss for the years ended December 31, 2017 and 2016:



Derivatives in hedging relationships	Year ended December 31,
Forward Exchange Contracts :	2017			2016
(Gain)/loss recognized in AOCI
Derivatives in cash flow hedging relationships	$	(19,802	)	$	(5,129	)

(Gain)/loss recognized in consolidated statements of income
Derivatives in fair value hedging relationships	$	(5,056	)	$	(4,790	)



Location and amount of (gain)/loss recognized in consolidated statements of income for cash flow and fair value hedging relationships
	Year ended December 31,
	2017*						2016*
Type of hedging relationships	As per consolidated statements of income			(Gain)/loss on foreign currency exchange contracts			As per consolidated statements of income			(Gain)/loss on foreign currency exchange contracts
Cash flow hedging relationships
Location in consolidated statements of income where (gain)/loss was reclassed from AOCI

Cost of revenue	$	495,586		$	(5,465	)	$	—		$	—
General & administrative expenses	$	102,567		(960		)	$	—		—
Selling & marketing expenses	$	53,383		(103		)	$	—		—
Depreciation & amortization	$	38,549		(371		)	$	—		—
Foreign exchange gain, net	$	(2,839	)	—			$	(5,597	)	(2,669		)
				$	(6,899	)				$	(2,669	)

Fair value hedging relationships
Location in consolidated statements of income where (gain)/loss was recognized

Foreign exchange gain, net	$	(2,839	)	$	(5,056	)	$	(5,597	)	$	(4,790	)
	$	(2,839	)	$	(5,056	)	$	(5,597	)	$	(4,790	)

* The Company early adopted ASU 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. Pursuant to this adoption, effective January 1, 2017, the Company recorded settlement gain/(loss) on cash flow hedges in cost of revenues and operating expenses, as applicable, in the consolidated statements of income. In prior periods, such gain/loss were included under "Foreign exchange gain, net" line in the consolidated statements of income.

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708775-113959

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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 235
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-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Borrowings	12 Months Ended
Borrowings	Dec. 31, 2017
Debt Disclosure [Abstract]
Borrowings	Borrowings On October 24, 2014, the Company entered into a credit agreement that provided for a $50,000 revolving credit facility (the “Credit Facility”). On February 23, 2015, the Company increased the commitments under the Credit Facility by up to an additional $50,000. The Credit Facility had a maturity date of October 24, 2019 and was voluntarily pre-payable from time to time without premium or penalty. On November 21, 2017, the Company prepaid all outstanding amounts, including accrued interest and fees, and terminated all commitments, under the Credit Agreement. The Credit Facility carried an effective interest rate of 2.99% per annum during the year ended December 31, 2017. On November 21, 2017, the Company and each of the Company’s wholly owned material domestic subsidiaries entered into a Credit Agreement with certain lenders, and Citibank, N.A. as Administrative Agent (the “New Credit Agreement”). The New Credit Agreement provides for a $200,000 revolving credit facility (the “New Credit Facility”) with an option to increase the commitments by up to $100,000, subject to certain approvals and conditions as set forth in the New Credit Agreement. The New Credit Agreement also includes a letter of credit sub facility. The New Credit Facility has a maturity date of November 21, 2022 and is voluntarily pre-payable from time to time without premium or penalty. Borrowings under the New Credit Agreement were used to repay amounts outstanding under the Credit Facility and may otherwise be used for working capital and general corporate purposes, including permitted acquisitions. Depending on the type of borrowing, loans under the New Credit Agreement bear interest at a rate equal to the specified prime rate (alternate base rate) or adjusted LIBO rate, plus, in each case, an applicable margin. The applicable margin is tied to the Company’s total net leverage ratio and ranges from 0.00% to 0.75% per annum with respect to loans pegged to the specified prime rate, and 1.00% to 1.75% per annum on loans pegged to the adjusted LIBO rate. The revolving credit commitments under the New Credit Agreement are subject to a commitment fee which is also tied to the Company’s total net leverage ratio, and ranges from 0.15% to 0.30% per annum on the average daily amount by which the aggregate revolving commitments exceed the sum of outstanding revolving loans and letter of credit obligations. The New Credit Facility carried an effective interest rate of 3.5% per annum during the year ended December 31, 2017. Obligations under the New Credit Agreement are guaranteed by the Company’s material domestic subsidiaries and are secured by all or substantially all of the assets of the Company and our material domestic subsidiaries. The New Credit Agreement contains affirmative and negative covenants, including, but not limited to, restrictions on the ability to incur indebtedness, create liens, make certain investments, make certain dividends and related distributions, enter into, or undertake, certain liquidations, mergers, consolidations or acquisitions and dispose of assets or subsidiaries. In addition, the New Credit Agreement contains a covenant to not permit the interest coverage ratio or the total net leverage ratio, both as defined for the four consecutive quarter period ending on the last day of each fiscal quarter, to be less than 3.5 to 1.0 or more than 3.0 to 1.0, respectively. At December 31, 2017, the Company was in compliance with all financial and non - financial covenants listed under the New Credit Agreement. As of December 31, 2017, we had an outstanding debt of $60,000 of which $10,000 is expected to be repaid within the next twelve months and is included under "current portion of long-term borrowings" and the balance of $50,000 is included under "long-term borrowings" in the consolidated balance sheets. In connection with the New Credit Agreement, the Company incurred issuance cost of $790 which are deferred and amortized as an adjustment to interest expense over the term of the New Credit Facility. The unamortized debt issuance costs as of December 31, 2017 and December 31, 2016 was $773 and $272, respectively and is included under "other current assets" and “other assets” in the consolidated balance sheets. Borrowings also includes structured payables which are in the nature of debt, amounting to $709, of which $318 and $391 is included under "current portion of long-term borrowings" and "long-term borrowings", respectively in the consolidated balance sheet as of December 31, 2017.

Capital Structure	12 Months Ended
Capital Structure	Dec. 31, 2017
Equity [Abstract]
Capital Structure	Capital Structure Common Stock The Company has one class of common stock outstanding. During the years ended December 31, 2017 and 2016, the Company acquired 69,154 and 17,676 shares of common stock, respectively from employees in connection with withholding tax payments related to the vesting of restricted stock for a total consideration of $3,267 and $807, respectively. The weighted average purchase price per share of $47.24 and $45.65, respectively, was the average of the high and low price of the Company’s share of common stock on the Nasdaq Global Select Market on the trading day prior to the vesting date of the shares of restricted stock. On December 30, 2014, the Company’s Board of Directors authorized a common stock repurchase program (the “2014 Repurchase Program”), under which shares were authorized to be purchased by the Company from time to time from the open market and through private transactions during each of the fiscal years 2015 through 2017 up to an annual amount of $20,000. On February 28, 2017, the Company’s Board of Directors authorized an additional common stock repurchase program (the “2017 Repurchase Program”), under which shares may be purchased by the Company from time to time from the open market and through private transactions during each of the fiscal years 2017 through 2019 up to an aggregate additional amount of $100,000. The approval increases the 2017 authorization from $20,000 to $40,000 and authorizes stock repurchases of up to $40,000 in each of 2018 and 2019. During the year ended December 31, 2017, the Company purchased 761,154 shares of its common stock for an aggregate purchase price of approximately $40,187, including commissions, representing an average purchase price per share of $52.80 under the 2014 and 2017 Repurchase program. During the year ended December 31, 2016, the Company purchased 364,056 shares of its common stock for an aggregate purchase price of approximately $17,396, including commissions, representing an average purchase price per share of $47.78 under the 2014 Repurchase program. Repurchased shares have been recorded as treasury shares and will be held until the Board of Directors designates that these shares be retired or used for other purposes.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

12 Months Ended

Dec. 31, 2017

Employee Benefit Plans

The Company’s Gratuity Plans in India ("Gratuity Plan") provide for lump sum payment to vested employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. Liabilities with regard to the Gratuity Plans are determined by actuarial valuation using the projected unit credit method. Current service costs for the Gratuity Plan are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees.

In addition, the Company’s subsidiary operating in the Philippines conforms to the minimum regulatory benefit which provide for lump sum payment to vested employees on retirement from employment in an amount based on the respective employee’s salary and years of employment with the Company (the "Philippines Plan"). The benefit costs of the Philippines Plan for the year are calculated on an actuarial basis.

The benefit obligation has been measured as of December 31, 2017. The following table sets forth the activity and the funded status of the Gratuity Plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods:



	As of
	December 31, 2017			December 31, 2016
Change in projected benefit obligation:
Projected benefit obligation at the beginning of the year	$	9,711		$	7,909
Service cost	1,933			1,601
Interest cost	645			599
Benefits paid	(1,001		)	(837		)
Actuarial (gain)/loss	(1,471		)	677
Acquisition	—			47
Effect of exchange rate changes	488			(285		)
Projected benefit obligation at the end of the year	$	10,305		$	9,711
Unfunded amount–non-current	$	3,377		$	1,977
Unfunded amount–current	13			2,094
Total accrued liability	$	3,390		$	4,071

Accumulated benefit obligation	$	7,022		$	6,533

Net gratuity cost includes the following components:



	Year ended December 31,
	2017			2016			2015
Service cost	$	1,933		$	1,601		$	1,638
Interest cost	645			599			550
Expected return on plan assets	(401		)	(416		)	(385		)
Amortization of Actuarial loss	256			90			211
Net gratuity cost	$	2,433		$	1,874		$	2,014

The components of accumulated other comprehensive gain/(loss) (net of tax) that have not been recognized as components of net gratuity cost in the statement of income as of December 31, 2017 and 2016 are as follows:



	December 31,
	2017			2016
Net actuarial gain/(loss)	$	697		$	(831	)
Net prior service cost	(8		)	(9		)
Deferred taxes	74			342
Accumulated other comprehensive gain/(loss), net of tax	$	763		$	(498	)

The amount in accumulated other comprehensive gain that is expected to be recognized as a component of net periodic benefit cost over the next fiscal year is $161.

The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are:



	December 31,
	2017		2016		2015
Discount rate	7.0	%	6.8	%	7.8	%
Rate of increase in compensation levels	9.1	%	9.2	%	8.4	%
Expected long term rate of return on plan assets per annum	8.3	%	9.0	%	9.0	%

The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are based on current market yields on government securities adjusted for a suitable risk premium.



Expected benefit payments during the year ending December 31,
2018	$	2,011
2019	$	1,772
2020	$	1,531
2021	$	1,302
2022	$	1,029
2023 to 2027	$	3,206

The gratuity plan in India is partially funded and the Philippines Plan is unfunded. The Company makes annual contributions to the employees’ gratuity fund established with Life Insurance Corporation of India and HDFC Standard Life Insurance Company. They calculate the annual contribution required to be made by the Company and manage the Gratuity Plans, including any required payouts. Fund managers manage these funds on a cash accumulation basis and declare interest retrospectively on March 31 of each year. The company earned a return of approximately 7.9% on these Gratuity Plans for the period ended December 31, 2017.



Change in Plan Assets
Plan assets at January 1, 2016	$	4,923
Actual return	450
Employer contribution	1,242
Benefits paid*	(837		)
Effect of exchange rate changes	(138		)
Plan Assets at December 31, 2016	$	5,640
Actual return	202
Employer contribution	1,700
Benefits paid*	(1,001		)
Effect of exchange rate changes	374
Plan assets at December 31, 2017	$	6,915

* All benefits payments were made through the plan assets during the year ended December 31, 2017 and December 31, 2016.

The Company maintains several 401(k) Plans (the “401(k) Plans”) under Section 401(k) of the Internal Revenue Code of 1986 (the “Code”), covering all eligible employees, as defined in the Code is a defined contribution plan. The Company may make discretionary contributions of up to a maximum of 4% of employee compensation within certain limits. Contributions to the 401(k) Plans amounted to $2,709, $2,383 and $1,907 during the years ended December 31, 2017, 2016 and 2015, respectively.

During the years ended December 31, 2017, 2016 and 2015, the Company contributed $7,115, $6,306 and $5,753 respectively, for various defined contribution plans on behalf of its employees in India, the Philippines, Bulgaria, Romania, the Czech Republic, South Africa, Colombia, and Singapore.

Leases

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Leases

The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. Future minimum lease payments under these capital leases as of December 31, 2017 are as follows:



During the next twelve months ending December 31,
2018	$	330
2019	201
2020	127
2021	64
Total minimum lease payments	722
Less: amount representing interest	124
Present value of minimum lease payments	598
Less: current portion	267
Long term capital lease obligation	$	331

The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. Future minimum lease payments under such agreements expiring after December 31, 2017 are set forth below:



During the next twelve months ending December 31,
2018	$	20,850
2019	17,802
2020	14,840
2021	12,888
2022	10,234
2023 and thereafter	28,273
Future minimum lease payment	$	104,887

Rent expense

The operating leases are subject to renewal periodically and have scheduled rent increases. The company recognizes rent on such leases on a straight-line basis over cancelable and non-cancelable lease period determined under ASC topic 840, "Leases":



	Year ended December 31,
	2017		2016		2015
Rent expense	$	24,015	$	21,382	$	19,943

Deferred rent



	As of
	December 31, 2017		December 31, 2016
Cancelable and non-cancelable operating leases	$	8,959	$	7,915

Deferred rent is included under "Accrued expenses and other current liabilities" and "Non-current liabilities" in the consolidated balance sheets.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

The components of income before income taxes consist of the following:



	Year ended December 31,
	2017		2016		2015
Domestic	$	4,626	$	12,652	$	25,045
Foreign	80,408		71,232		50,731
	$	85,034	$	83,884	$	75,776

The income tax expense consists of the following:



	Year ended December 31,
	2017			2016			2015
Current provision:
Domestic	$	17,407		$	7,107		$	9,951
Foreign	18,008			18,428			12,022
	$	35,415		$	25,535		$	21,973
Deferred provision/(benefit):
Domestic	$	2,618		$	(2,506	)	$	3,041
Foreign	(1,887		)	(878		)	(803		)
	$	731		$	(3,384	)	$	2,238
Income tax expense	$	36,146		$	22,151		$	24,211

The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows:



	Year ended December 31,
	2017			2016			2015
Expected tax expense	$	29,762		$	29,361		$	26,521
Change in valuation allowance	(21		)	22			19
Impact of tax holiday	(4,396		)	(4,027		)	(2,991		)
Foreign tax rate differential	(2,616		)	(2,716		)	(2,797		)
Deferred tax (benefit)/provision	(1,887		)	(878		)	(803		)
Unrecognized tax benefits and interest	(3,905		)	495			324
State taxes, net of Federal taxes	339			202			1,327
Non-deductible expenses	825			144			26
Prior year tax expense/(benefit)	—			—			2,450
US Tax Reform Act impact	29,185			—			—
Excess tax benefit for stock-based compensation	(9,797		)	—			—
Other	(1,343		)	(452		)	135
Tax expense	$	36,146		$	22,151		$	24,211

The effective income tax rate was 42.5% and 26.4% during the year ended December 31, 2017 and 2016, respectively. The effective tax rate for the year ended December 31, 2017 was significantly impacted by recording the impact of the Tax Cuts and Jobs Act (the “Tax Reform Act”), enacted on December 22, 2017 by the U.S. government. The Tax Reform Act makes broad and complex changes to the U.S. tax code that has affected our fiscal year ended December 31, 2017, including, but not limited to (1) reducing the U.S. federal corporate tax rate from 35.0% to 21.0% effective January 1, 2018 and (2) implementing a modified territorial tax system that includes a one-time transition tax on the mandatory deemed repatriation of accumulated earnings and profits (“E&P”) of foreign subsidiaries that is payable over eight years.

The Company has re-measured its net deferred tax assets and liabilities using the enacted Federal Tax Rate that will apply when these amounts are expected to reverse. The effect of the re-measurement of $1,949 is reflected entirely in the current period that includes the enactment date and is allocated directly to income tax expense from continuing operations.

The Deemed Repatriation Transition Tax (the “Transition Tax”) is a tax on previously untaxed accumulated E&P of certain of our foreign subsidiaries. To determine the amount of the Transition Tax, the Company must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. The Company was able to make a reasonable estimate and recorded a provisional Transition Tax obligation of $27,236.

On December 22, 2017, the SEC issued Staff Accounting Bulletin (“SAB 118”), which provides guidance on accounting for tax effects of the Tax Reform Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Reform Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Reform Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Reform Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate to be included in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provision of the tax laws that were in effect immediately before the enactment of the Tax Reform Act. While the Company was able to make reasonable estimates of the impact of the reduction in corporate rate and the deemed repatriation transition tax, the final impact of the Tax Reform Act may differ from these estimates, due to, among other things, changes in our interpretations and assumptions, additional guidance that may be issued by the I.R.S., and actions the Company may take. The Company continues to gather additional information to determine the final impact.

Company also derive benefit from a corporate tax holiday in the Philippines for our operations centers established there over the last several years. The tax holiday expired for two of our centers in 2014 and in 2016 and will expire over the next few years for other centers, which may lead to an increase in our overall tax rate. Following the expiry of the tax exemption, income generated from centers in the Philippines will be taxed at the prevailing annual tax rate, which is currently 5.0% on gross income.

Certain operations centers in India, which were established in Special Economic Zones (“SEZs”), are eligible for tax incentives until 2025. These operations centers are eligible for a 100% income tax exemption for first five years of operations and 50% exemption for a period of five years thereafter.

The diluted earnings per share effect of the tax holiday is $0.13, $0.12 and $0.09 for the years ended December 31, 2017, 2016 and 2015, respectively.

The components of the deferred tax balances as of December 31, 2017 and 2016 are as follows:



	As of
	December 31, 2017			December 31, 2016
Deferred tax assets:
Tax credit carry forward	$	1,474		$	4,806
Depreciation and amortization	2,183			3,765
Stock-based compensation	7,647			10,385
Accrued employee costs and other expenses	3,673			5,130
Net operating loss carry forwards	2,068			1,856
Unrealized exchange loss	252			2,099
Deferred rent	2,064			1,307
Others	1,007			484
	$	20,368		$	29,832
Valuation allowance	(108		)	(454		)
Deferred tax assets	$	20,260		$	29,378
Deferred tax liabilities:
Unrealized exchange gain	$	5,069		$	1,414
Intangible assets	4,648			13,165
Others	1,958			—
Deferred tax liabilities:	$	11,675		$	14,579
Net deferred tax assets	$	8,585		$	14,799

Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of assets and liabilities and their respective tax bases and operating loss carry forwards. At December 31, 2017 and 2016, the Company performed an analysis of the deferred tax asset valuation allowance for net operating loss carry forward for its domestic entities. Based on this analysis, the Company continues to carry a valuation allowance on the deferred tax assets on certain net operating loss carry forwards. Accordingly, the Company had recorded a valuation allowance of $20 and $351 as of December 31, 2017 and 2016, respectively. The Company also recorded a valuation allowance of $88 and $103 related to tax credit carry forward as of December 31, 2017 and 2016, respectively.

As a result of the multiple acquisitions over the last few years, the Company acquired federal and state net operating losses in the United States. As of December 31, 2017 and 2016, the Company has federal net operating loss carry forwards of approximately of $1,554 and $4,052, respectively, which expire through various years until 2032. The Company’s federal net operating loss carry forwards are subject to certain annual utilization limitations under Section 382 of the United States Internal Revenue Code. The Company also has state and local net operating loss carry forwards of varying amounts, which are subject to limitations under the applicable rules and regulations of those taxing jurisdictions. The Company estimates that it will be able to utilize all of the losses before their expiration.

At December 31, 2017, undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $376,649. Not all of the undistributed earnings may be available for repatriation due to foreign legal restrictions that require minimum reserves to be maintained in those Countries and additional taxes that could be imposed on the distribution of those earnings. U.S. federal deferred income taxes on these earnings are not required because under the Tax Reform Act such earnings have been subject to U.S. federal tax as a result of the mandatory repatriation provision. Additionally, such earnings will not be subject to U.S. federal tax when actually distributed as provided in the Tax Reform Act, except that certain foreign jurisdictions may impose a tax on such distributions.

The Company’s income tax expense also includes the impact of provisions established for uncertain income tax positions determined in accordance with ASC topic 740, “Income Taxes”, as well as the related net interest. Tax exposures can involve complex issues and may require an extended resolution period. Although the Company believes that it has adequately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters differs from the amounts recorded, such differences will impact the income tax expense in the period in which such determination is made.

The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2017 through December 31, 2017



Balance as of January 1, 2017	$	3,087
Increases related to prior year tax positions	—
Decreases related to prior year tax positions	(2,520		)
Increases related to current year tax positions	169
Decreases related to current year tax positions	—
Effect of exchange rate changes	88
Balance as of December 31, 2017	$	824

The unrecognized tax benefits as of December 31, 2017 of $824, if recognized, would impact the effective tax rate.

The Company has recognized interest of nil and $315 during the years ended December 31, 2017 and 2016, respectively, which is included in the income tax expense in the consolidated statements of income. As of December 31, 2017 and 2016, the Company has accrued interest and penalties of $68 and $1,553 relating to unrecognized tax benefits.

Stock Based Compensation

12 Months Ended

Dec. 31, 2017

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

Stock Based Compensation

On June 19, 2015, at the Company’s 2015 Annual Meeting of Stockholders, the Company's stockholders approved the 2015 Plan, which amended and restated the 2006 Omnibus Award Plan to, among other things, increased the total number of shares reserved for grants of awards under the 2015 Plan by 1,700,000 shares. As of December 31, 2017, the Company had 1,509,976 shares available for grant under the 2015 Plan (includes 145,193 shares against vested performance-based restricted stock units for which the underlying common stock was issued subsequent to December 31, 2017).

Under the 2015 Plan, the Compensation Committee (the “Committee”) may grant awards of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards, performance based compensation awards (including cash bonus awards and market condition based awards) or any combination of the foregoing.

The Committee determines which employees are eligible to receive the equity awards, the number of equity awards to be granted, the exercise price, the vesting period and the exercise period. The vesting period for the equity award issued is determined on the date of the grant and is non-transferable during the life of the equity award. The majority of options expire ten years from the date of grant. The equity awards generally vest proportionally over a period of four years from the date of grant, unless specified otherwise.

The Company applies the provisions of ASC 718, to account for its stock based compensation, using the modified prospective method of transition. Under the provisions of this guidance, the estimated fair value of stock-based awards granted under stock incentive plans is recognized as compensation expense over the vesting period.

The following costs related to the Company’s stock-based compensation plan are included in the consolidated statements of income:



	Year ended December 31,
	2017		2016		2015
Cost of revenue	$	4,600	$	3,664	$	2,895
General and administrative expenses	10,363		8,372		6,077
Selling and marketing expenses	8,078		7,734		7,075
Total	$	23,041	$	19,770	$	16,047

Stock Options

The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model.

The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. The Company accounts for the forfeitures as and when the actual forfeitures occur.

Stock option activity under the Company’s stock plans is shown below:



	Number of Options		Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Life (Years)
Outstanding at December 31, 2016	811,902		$	16.31	$	27,718	2.96
Granted	—		—
Exercised	(552,339	)	15.50
Forfeited	—		—
Outstanding at December 31, 2017	259,563		$	18.03	$	10,985	2.76
Vested and exercisable at December 31, 2017	259,563		$	18.03	$	10,985	2.76

The unrecognized compensation cost for unvested options as of December 31, 2017 is nil. The Company did not grant any options during the years ended December 31, 2017, 2016 and 2015. The total grant date fair value of options vested during the years ended December 31, 2017, 2016 and 2015 was nil, $706 and $1,228, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2017, 2016 and 2015 was $23,027, $12,911 and $4,413, respectively.

The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable at December 31, 2017:



	Options Outstanding, Vested and Exercisable
Range of Exercise Prices	Shares	Weighted- Average Exercise Price
$8.00 to $15.00	98,784	$	9.64
$15.01 to $21.00	36,516	19.05
$21.01 to $28.00	124,263	24.40
Total	259,563	$	18.03

Restricted Stock and Restricted Stock Units

An award of restricted stock is a grant of shares subject to conditions and restrictions set by the Committee. The grant or the vesting of an award of restricted stock may be conditioned upon service to the Company or its affiliates or upon the attainment of performance goals or other factors, as determined in the discretion of the Committee. The Committee may also, in its discretion, provide for the lapse of restrictions imposed upon an award of restricted stock. Holders of an award of restricted stock may have, with respect to the restricted stock granted, all of the rights of a stockholder, including the right to vote and to receive dividends.

The Committee is authorized to award restricted stock units to participants. The Committee establishes the terms, conditions and restrictions applicable to each award of restricted stock units, including the time or times at which restricted stock units will be granted or vested and the number of units to be covered by each award. The terms and conditions of each restricted stock award will be reflected in a restricted stock unit agreement.

Any cash or in-kind dividends paid with respect to unvested shares of restricted stock and restricted stock units are withheld by the Company and paid to the holder of such shares of restricted stock, without interest, only if and when such shares of restricted stock and restricted stock units vest. Any unvested shares of restricted stock and restricted stock units are immediately forfeited without consideration upon the termination of holder’s employment with the Company or its affiliates. Accordingly, the Company’s unvested restricted stock and restricted stock units do not include non-forfeitable rights to dividends or dividend equivalents and are therefore not considered as participating securities for purposes of earnings per share calculations pursuant to the two-class method.

Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below:



	Restricted Stock				Restricted Stock Units
	Number		Weighted- Average Fair Value		Number		Weighted- Average Fair Value
December 31, 2016 ⁽¹⁾	246,940		$	42.42	1,256,288		$	37.38
Granted	—		—		391,927		48.02
Vested	(60,168	)	42.30		(489,176	)	34.52
Forfeited	(4,505	)	35.11		(112,040	)	41.50
December 31, 2017 ⁽¹⁾	182,267		$	42.64	1,046,999		$	42.26

(1) Excludes 11,058 and 19,874 restricted stock units vested during the years ended December 31, 2017 and 2016, respectively. As of December 31, 2017 and 2016 restricted stock units vested for which the underlying common stock is yet to be issued are 146,112 and 135,054, respectively.

The fair value of restricted stock and restricted stock units is generally the market price of the Company’s shares on the date of grant. As of December 31, 2017, unrecognized compensation cost of $34,463 is expected to be expensed over a weighted average period of 2.47 years. The weighted-average fair value of restricted stock and restricted stock units granted during the years ended December 31, 2017, 2016 and 2015 was $48.02, $48.97 and $35.18, respectively. The total grant date fair value of restricted stock and restricted stock units vested during the years ended December 31, 2017, 2016 and 2015 was $19,430, $10,761 and $12,620, respectively.

Performance Based Stock Awards

Under the 2015 Plan, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. 50% of the PRSUs cliff vest at the end of a three-year period based on a revenue target for the third year (“PUs”). However, for PUs granted in 2015, up to one-third of the PUs may be earned based on the Company’s revenue performance in each of the first two years against annual revenue targets in those years. The total amount of PUs that the recipient earns based on these performance criteria will be the greater of (i) the PUs earned in the year of vesting and (ii) the sum of the earned PUs during the first two years. The remaining 50% is based on a market condition (“MUs”) that is contingent on the Company meeting or exceeding the total shareholder return relative to a group of peer companies specified under the program measured over a three-year performance period. The award recipient may earn up to two hundred percent (200%) of the PRSUs granted based on the actual achievement of targets.

The fair value of each PU was determined based on the market price of one common share on the date of grant, and the associated compensation expense was calculated on the basis that performance targets at 100% of the PUs is probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued will be adjusted upward or downward based upon the probability of achievement of the performance targets. The ultimate number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets.

The grant date fair value for the MUs was determined using a Monte Carlo simulation model and the related compensation expense will be expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, even if the market condition is not achieved.

The Monte Carlo simulation model simulates a range of possible future stock prices and estimates the probabilities of the potential payouts. This model also incorporates the following ranges of assumptions:


•	The historical volatilities are used over the most recent three-year period for the components of the peer group.


•	The risk-free interest rate is based on the U.S. Treasury rate assumption commensurate with the three-year performance period


•	Since the plan stipulates that the awards are based upon the TSR of the Company and the components of the peer group, it is assumed that the dividends get reinvested in the issuing entity on a continuous basis.


•	The correlation coefficients are used to model the way in which each entity tends to move in relation to each other are based upon the price data used to calculate the historical volatilities.

The fair value of each MU granted to employees is estimated on the date of grant using the following weighted average assumptions:



	Year ended December 31,
	2017		2016		2015
Dividend yield	—		—		—
Expected life (years)	2.86		2.85		2.84
Risk free interest rate	1.40	%	0.88	%	0.98	%
Volatility	23.8	%	28.0	%	30.3	%

Performance restricted stock unit activity under the Company’s stock plans is shown below:



	Revenue Based PRSUs				Market Condition Based PRSUs
	Number		Weighted Avg Fair Value		Number		Weighted Avg Fair Value
Outstanding at December 31, 2016	115,174		$	41.70	215,171		$	47.42
Granted	62,113		47.73		62,100		54.10
Adjustment upon final determination of level of performance goal achievement*	(9,320	)	34.75		154,513		39.60
Vested	(45,192	)	34.75		(309,026	)	39.60
Forfeited	(9,585	)	44.35		(9,584	)	58.85
Outstanding at December 31, 2017	113,190		$	48.13	113,174		$	60.80

* Represents adjustment of shares issued in respect of PUs and MUs granted in February 2015 and MUs granted in April 2015 upon certification of the level of achievement of the performance targets for such awards for which the underlying common stock was issued subsequent to December 31, 2017.

As of December 31, 2017, unrecognized compensation cost of $6,810 is expected to be expensed over a weighted average period of 1.76 years.

Subsequent to December 31, 2017, the Company granted approximately 458,000 PRSUs and restricted stock units to its employees.

Principles of Consolidation

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Related Party Disclosures	12 Months Ended
Related Party Disclosures	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Disclosures	Related Party Disclosures The Company provides consulting services to PharmaCord, LLC. One of the Company’s directors, Nitin Sahney, is the member-manager and chief executive officer of PharmaCord, LLC. The Company recognized revenue of approximately $1,748 for the year ended December 31, 2017 for services provided. At December 31, 2017, the Company had an account receivable of $140 related to these services.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Fixed Asset Commitments At December 31, 2017, the Company has committed to spend approximately $9,500 under agreements to purchase fixed assets. This amount is net of capital advances paid in respect of these purchases. Other Commitments Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units or under the Software Technology Parks of India (“STPI”) scheme promulgated by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. The Company’s management believes, however, that these units have in the past satisfied and will continue to satisfy the required conditions. The Company’s operations centers in the Philippines are registered with the Philippine Economic Zone Authority (“PEZA”). The registration provides the Company with certain fiscal incentives on the import of capital goods and requires Exl Philippines to meet certain performance and investment criteria. The Company’s management believes that these centers have in the past satisfied and will continue to satisfy the required criteria. Contingencies U.S. and Indian transfer pricing regulations require that any international transaction involving associated enterprises be at an arm’s-length price. Accordingly, the Company determines the appropriate pricing for the international transactions among its associated enterprises on the basis of a detailed functional and economic analysis involving benchmarking against transactions among entities that are not under common control. The tax authorities have jurisdiction to review this arrangement and in the event that they determine that the transfer price applied was not appropriate, the Company may incur increased tax liability, including accrued interest and penalties. The Company is currently involved in disputes with the Indian tax authorities over the application of certain of its transfer pricing policies for some of its subsidiaries. Further, the Company and a U.S. subsidiary are engaged in tax litigation with the income-tax authorities in India on the issue of permanent establishment. The aggregate amount demanded by Income tax authorities (net of advance payments, if any) from the Company related to its transfer pricing issues for tax years 2003 to 2014 and its permanent establishment issues for tax years 2003 to 2007 as of December 31, 2017 and 2016 is $18,065 and $17,963, respectively, of which the Company has made payments or provided bank guarantee to the extent $8,573 and $8,640, respectively. Amounts paid as deposits in respect of such assessments aggregating to $6,499 and $6,690 as of December 31, 2017 and 2016, respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $2,074 and $1,950 as of December 31, 2017 and 2016, respectively, are included in “Restricted cash” in the non-current assets section of the Company’s consolidated balance sheets. Based on advice from its Indian tax advisors, the facts underlying the Company’s position and its experience with these types of assessments, the Company believes that the probability that it will ultimately be found liable for these assessments is remote and accordingly has not accrued any amount with respect to these matters in its consolidated financial statements. The Company does not expect any impact from these assessments on its future income tax expense. It is possible that the Company might receive similar orders or assessments from tax authorities for subsequent years. Accordingly even if these disputes are resolved, the Indian tax authorities may still serve additional orders or assessments.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Basis of Preparation

The accompanying consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“US GAAP”).

The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings and all of its subsidiaries and includes the Company's share in the results of its associates.

Use of Estimates

In accordance with its policy, the Company reviews the estimated useful lives of its property and equipment on an ongoing basis.

Foreign Currency Translation

Revenue Recognition

Reimbursements of out-of-pocket expenses received from clients are included as part of revenues.

Cash and Cash Equivalents and Restricted Cash

Investments

Accounts Receivable

Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts.

Property and equipment



	(in years)
Assets:
Network equipment and computers	3-5 years
Software	3-5 years
Leasehold improvements	3-8 years
Office furniture and equipment	3-8 years
Motor vehicles	2-5 years
Buildings	30 years

Software Development Costs

Business Combinations, Goodwill and Other Intangible Assets

The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method:



Customer relationships	3-15 years
Leasehold benefits	3-8 years
Developed technology	5-10 years
Non-compete agreements	1-5 years
Trade names and trademarks	3-10 years

Investment in equity affiliate

Impairment of long-lived assets

Derivative Financial Instruments

Employee Benefits

Stock-Based Compensation

Income Taxes

Financial Instruments and Concentration of Credit Risk

Lease Obligations

Government Grants

Earnings per share

Commitments and contingencies

Recent Accounting Pronouncements

We have identified changes to the Company systems processes and internal control to meet the standard reporting and disclosure requirement.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Schedule of Property and Equipment, Estimated Useful Lives



	(in years)
Assets:
Network equipment and computers	3-5 years
Software	3-5 years
Leasehold improvements	3-8 years
Office furniture and equipment	3-8 years
Motor vehicles	2-5 years
Buildings	30 years

The depreciation and amortization expense excluding amortization of acquisition-related intangibles recognized in the consolidated statements of income was as follows:



	Year ended December 31,
	2017		2016		2015
Depreciation and amortization expense	$	24,574	$	22,707	$	21,239

Internally developed software costs, included under Software, was as follows:



	As of
	December 31, 2017		December 31, 2016
Cost	$	2,571	$	2,242
Less : Accumulated amortization	976		336
	$	1,595	$	1,906

Property and equipment consist of the following:



		As of
	Estimated useful lives (Years)	December 31, 2017			December 31, 2016
Owned Assets:
Network equipment and computers	3-5	$	77,587		$	65,381
Software	3-5	59,325			44,617
Leasehold improvements	3-8	38,857			31,192
Office furniture and equipment	3-8	19,667			15,426
Motor vehicles	2-5	638			580
Buildings	30	1,245			1,171
Land	-	815			766
Capital work in progress	-	9,184			4,964
		207,318			164,097
Less: Accumulated depreciation and amortization		(141,059		)	(115,568		)
		$	66,259		$	48,529
Assets under capital leases:
Leasehold improvements		$	941		$	854
Office furniture and equipment		167			133
Motor vehicles		710			810
		1,818			1,797
Less: Accumulated depreciation		(1,320		)	(1,297		)
		$	498		$	500
Property and Equipment, net		$	66,757		$	49,029

Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives

The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method:



Customer relationships	3-15 years
Leasehold benefits	3-8 years
Developed technology	5-10 years
Non-compete agreements	1-5 years
Trade names and trademarks	3-10 years

Segment & Geographical Information (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Revenues and Cost of Revenues for Company's Reportable Segments

Revenues and cost of revenues for each of the years ended December 31, 2017, 2016 and 2015, for each of the reportable segments, are as follows:



	Year ended December 31, 2017
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total

Revenues, net	$	234,794	$	77,013	$	70,951	$	86,527	$	83,082	$	209,943	$	762,310
Cost of revenues (exclusive of depreciation and amortization)	159,529		49,483		41,409		51,445		56,697		137,023		495,586
Gross profit	$	75,265	$	27,530	$	29,542	$	35,082	$	26,385	$	72,920	$	266,724
Operating expenses													194,499
Foreign exchange gain, interest expense and other income, net													12,809
Income tax expense													36,146
Net income													$	48,888



	Year ended December 31, 2016
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total

Revenues, net	$	206,327	$	68,656	$	69,366	$	79,416	$	96,489	$	165,734	$	685,988
Cost of revenues (exclusive of depreciation and amortization)	146,203		44,098		41,962		48,302		61,050		106,341		447,956
Gross profit	$	60,124	$	24,558	$	27,404	$	31,114	$	35,439	$	59,393	$	238,032
Operating expenses													173,810
Foreign exchange gain, interest expense and other income, net													19,662
Income tax expense													22,151
Net income													$	61,733



	Year ended December 31, 2015
	Insurance		Healthcare		TT&L		F&A		All Other		Analytics		Total

Revenues, net	$	199,878	$	55,209	$	62,264	$	78,504	$	110,486	$	122,151	$	628,492
Cost of revenues (exclusive of depreciation and amortization)	134,196		37,224		37,506		46,846		68,307		78,838		402,917
Gross profit	$	65,682	$	17,985	$	24,758	$	31,658	$	42,179	$	43,313	$	225,575
Operating expenses													158,232
Foreign exchange gain, interest expense and other income, net													8,433
Income tax expense													24,211
Net income													$	51,565

Net revenues of the Company by service type, were as follows:



	Year ended December 31,
	2017		2016		2015
BPM and related services ⁽¹⁾	$	552,367	$	520,254	$	506,341
Analytics services	209,943		165,734		122,151
Total	$	762,310	$	685,988	$	628,492

Revenues Based on Geographical Information

The Company attributes the revenues to regions based upon the location of its customers.



	Year ended December 31,
	2017		2016		2015
Revenues, net
United States	$	626,336	$	554,945	$	496,418
Non-United States
United Kingdom	108,640		109,905		108,868
Rest of World	27,334		21,138		23,206
Total Non-United States	135,974		131,043		132,074
	$	762,310	$	685,988	$	628,492

Property and Equipment, Net Based on Geographical Information

Property and equipment, net by geographic area, are as follows:



	As of
	December 31, 2017		December 31, 2016
Property and equipment, net
India	$	39,143	$	23,362
United States	16,371		10,809
Philippines	8,217		11,900
Rest of World	3,026		2,958
	$	66,757	$	49,029

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Summary of Quarterly Results

Summarized quarterly results for the years ended December 31, 2017 and 2016 are as follows:



	Three months ended 2017									Year ended
	March 31		June 30		September 30		December 31			December 31, 2017

Revenues, net	$	183,033	$	189,057	$	192,345	$	197,875		$	762,310
Gross profit**	$	63,851	$	65,211	$	69,156	$	68,506		$	266,724
Net income/(loss)	$	16,788	$	20,378	$	21,077	$	(9,355	)	$	48,888
Earnings/(loss) per share:
Basic*	$	0.50	$	0.60	$	0.62	$	(0.27	)	$	1.44
Diluted*	$	0.48	$	0.58	$	0.60	$	(0.27	)	$	1.39
Weighted-average number of shares used in computing earnings per share:
Basic*	33,845,560		33,819,320		33,838,374		34,086,711			33,897,916
Diluted*	35,108,882		34,993,226		35,043,987		34,086,711			35,110,210

Stock compensation expense	$	5,956	$	5,107	$	5,708	$	6,270		$	23,041
Amortization of intangibles	$	3,498	$	3,507	$	3,487	$	3,483		$	13,975
	Three months ended 2016									Year ended
	March 31		June 30		September 30		December 31			December 31, 2016

Revenues, net	$	167,036	$	170,478	$	171,200	$	177,274		$	685,988
Gross profit**	$	58,657	$	58,452	$	59,433	$	61,490		$	238,032
Net income	$	13,820	$	16,375	$	16,050	$	15,488		$	61,733
Earnings per share:
Basic*	$	0.41	$	0.49	$	0.48	$	0.46		$	1.84
Diluted*	$	0.40	$	0.47	$	0.46	$	0.45		$	1.79
Weighted-average number of shares used in computing earnings per share:
Basic*	33,380,028		33,621,444		33,624,401		33,638,170			33,566,367
Diluted*	34,351,657		34,510,400		34,675,485		34,714,308			34,563,319

Stock compensation expense	$	5,809	$	4,450	$	4,484	$	5,027		$	19,770
Amortization of intangibles	$	2,715	$	2,718	$	2,848	$	3,592		$	11,873

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted earnings per share:



	Year ended December 31,
	2017		2016		2015
Numerators:
Net income	$	48,888	$	61,733	$	51,565
Denominators:
Basic weighted average common shares outstanding	33,897,916		33,566,367		33,298,104
Dilutive effect of stock based awards	1,212,294		996,952		880,236
Diluted weighted average common shares outstanding	35,110,210		34,563,319		34,178,340
Earnings per share:
Basic	$	1.44	$	1.84	$	1.55
Diluted	$	1.39	$	1.79	$	1.51
Weighted average common shares considered anti-dilutive and not included in computing diluted earnings per share	151,961		92,538		73,896

Other Income, net (Tables)

12 Months Ended

Dec. 31, 2017

Other Nonoperating Income (Expense) [Abstract]

Other Income, net

Other Income, net consists of the following:



	Year ended December 31,
	2017		2016		2015
Interest and dividend income	$	1,625	$	1,673	$	2,904
Gain on mutual fund investments	8,766		8,087		3,902
Change in fair value of earn-out consideration	—		4,060		—
Other, net	1,468		1,588		221
Other income, net	$	11,859	$	15,408	$	7,027

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment



	(in years)
Assets:
Network equipment and computers	3-5 years
Software	3-5 years
Leasehold improvements	3-8 years
Office furniture and equipment	3-8 years
Motor vehicles	2-5 years
Buildings	30 years

The depreciation and amortization expense excluding amortization of acquisition-related intangibles recognized in the consolidated statements of income was as follows:



	Year ended December 31,
	2017		2016		2015
Depreciation and amortization expense	$	24,574	$	22,707	$	21,239

Internally developed software costs, included under Software, was as follows:



	As of
	December 31, 2017		December 31, 2016
Cost	$	2,571	$	2,242
Less : Accumulated amortization	976		336
	$	1,595	$	1,906

Property and equipment consist of the following:



		As of
	Estimated useful lives (Years)	December 31, 2017			December 31, 2016
Owned Assets:
Network equipment and computers	3-5	$	77,587		$	65,381
Software	3-5	59,325			44,617
Leasehold improvements	3-8	38,857			31,192
Office furniture and equipment	3-8	19,667			15,426
Motor vehicles	2-5	638			580
Buildings	30	1,245			1,171
Land	-	815			766
Capital work in progress	-	9,184			4,964
		207,318			164,097
Less: Accumulated depreciation and amortization		(141,059		)	(115,568		)
		$	66,259		$	48,529
Assets under capital leases:
Leasehold improvements		$	941		$	854
Office furniture and equipment		167			133
Motor vehicles		710			810
		1,818			1,797
Less: Accumulated depreciation		(1,320		)	(1,297		)
		$	498		$	500
Property and Equipment, net		$	66,757		$	49,029

Business Combinations, Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Business Combinations, Goodwill And Intangible Assets Disclosure [Abstract]

Allocation of Purchase Price to Assets Acquired and Liabilities Assumed

The Company has preliminary allocated the purchase price to the net tangible and intangible assets based on their fair values as set forth below:



	Amount
	(In thousands)
Tangible Assets	$	5,945
Liabilities	(7,193		)
Identifiable Intangible Assets:
Customer relationships	6,760
Developed technology	1,510
Trade names and trademarks	570
Goodwill	15,957
Total purchase price	$	23,549

Unaudited Pro Forma Financial Information



	Year ended December 31,
	2017		2016
Revenues	$	801,101	$	729,938
Net income	$	46,998	$	58,232
Earnings per share:
Basic	$	1.39	$	1.73
Diluted	$	1.34	$	1.68

Summary of Company's Goodwill

The following table sets forth details of the Company’s goodwill balance as of December 31, 2017:



	Insurance			Healthcare		TT&L			F&A			All Other		Analytics		Total
Balance as at January 1, 2016	$	35,824		$	19,276	$	13,278		$	47,891		$	5,326	$	49,940	$	171,535
Acquisitions	2,510			—		—			—			—		13,598		16,108
Currency translation adjustments	(224		)	—		(295		)	(354		)	—		—		(873		)
Balance as at December 31, 2016	$	38,110		$	19,276	$	12,983		$	47,537		$	5,326	$	63,538	$	186,770
Acquisitions	—			15,957		—			—			—		—		15,957
Currency translation adjustments	223			—		696			835			—		—		1,754
Balance as at December 31, 2017	$	38,333		$	35,233	$	13,679		$	48,372		$	5,326	$	63,538	$	204,481

Schedule of Finite-Lived Intangible Assets

The remaining weighted average life of intangible assets is as follows:



	(in years)
Customer relationships	5.36
Leasehold benefits	1.41
Developed technologies	3.07
Non-compete agreements	1.69
Trade names and trademarks (Finite lived)	4.29

Information regarding the Company’s intangible assets is set forth below:



	As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	82,165	$	(43,667	)	$	38,498
Leasehold benefits	2,888		(2,596		)	292
Developed technology	15,835		(8,749		)	7,086
Non-compete agreements	2,045		(1,780		)	265
Trade names and trademarks	5,951		(4,034		)	1,917
	$	108,884	$	(60,826	)	$	48,058
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—		$	900
Total intangible assets	$	109,784	$	(60,826	)	$	48,958



	As of December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	75,181	$	(32,968	)	$	42,213
Leasehold benefits	2,715		(2,247		)	468
Developed technology	14,186		(6,468		)	7,718
Non-compete agreements	2,045		(1,612		)	433
Trade names and trademarks	5,360		(3,322		)	2,038
	$	99,487	$	(46,617	)	$	52,870
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—		$	900
Total intangible assets	$	100,387	$	(46,617	)	$	53,770

Schedule of Indefinite-Lived Intangible Assets

Information regarding the Company’s intangible assets is set forth below:



	As of December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	82,165	$	(43,667	)	$	38,498
Leasehold benefits	2,888		(2,596		)	292
Developed technology	15,835		(8,749		)	7,086
Non-compete agreements	2,045		(1,780		)	265
Trade names and trademarks	5,951		(4,034		)	1,917
	$	108,884	$	(60,826	)	$	48,058
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—		$	900
Total intangible assets	$	109,784	$	(60,826	)	$	48,958



	As of December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	75,181	$	(32,968	)	$	42,213
Leasehold benefits	2,715		(2,247		)	468
Developed technology	14,186		(6,468		)	7,718
Non-compete agreements	2,045		(1,612		)	433
Trade names and trademarks	5,360		(3,322		)	2,038
	$	99,487	$	(46,617	)	$	52,870
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—		$	900
Total intangible assets	$	100,387	$	(46,617	)	$	53,770

Amortization of Intangible Assets

The amortization expenses is as follows:



	Year ended December 31,
	2017		2016		2015
Amortization expense	$	13,975	$	11,873	$	10,226

Estimated Future Amortization of Intangible Assets



Estimated amortization of intangible assets during the year ending December 31:
2018	$	15,249
2019	12,508
2020	5,086
2021	4,021
2022	3,213
2023 and thereafter	7,981
Total	$	48,058

Other current assets (Tables)

12 Months Ended

Dec. 31, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Current Assets

Other current assets consists of the following:



	As of
	December 31, 2017		December 31, 2016
Derivative instruments	$	10,938	$	3,324
Advances to suppliers	2,451		1,091
Receivables from statutory authorities	7,598		11,870
Others	8,595		4,883
Other current assets	$	29,582	$	21,168

Accrued expenses and other current liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Accounts Payable and Accrued Liabilities, Current [Abstract]

Schedule of Accrued Liabilities and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:



	As of
	December 31, 2017		December 31, 2016
Accrued expenses	$	43,235	$	30,690
Derivative instruments	555		1,430
Client liability account	8,982		4,005
Others	8,594		7,139
Accrued expenses and other current liabilities	$	61,366	$	43,264

Non-current liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Liabilities, Noncurrent [Abstract]

Summary of Non-Current Liabilities

Non-current liabilities consists of the following:



	As of
	December 31, 2017		December 31, 2016
Derivative instruments	$	322	$	828
Unrecognized tax benefits	892		3,640
Deferred rent	8,176		7,237
Retirement benefits	3,377		1,977
Others	3,435		1,137
Non-current liabilities	$	16,202	$	14,819

Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The balances as of December 31, 2017 and 2016 are as follows:



	As of
	December 31, 2017			December 31, 2016
Cumulative currency translation adjustments	$	(58,405	)	$	(77,299	)
Unrealized gain on cash flow hedges, net of taxes of $4,918 and $1,207	11,932			2,740
Retirement benefits, net of taxes of ($74) and ($342)	763			(498		)
Accumulated other comprehensive loss	$	(45,710	)	$	(75,057	)

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value



As of December 31, 2017	Level 1		Level 2		Level 3		Total
Assets
Money market and mutual funds*	$	162,906	$	—	$	—	$	162,906
Derivative financial instruments	—		18,298		—		18,298
Total	$	162,906	$	18,298	$	—	$	181,204
Liabilities
Derivative financial instruments	$	—	$	877	$	—	$	877
Fair value of earn-out consideration	—		—		920		920
Total	$	—	$	877	$	920	$	1,797

As of December 31, 2016	Level 1		Level 2		Level 3		Total
Assets
Money market and mutual funds*	$	—	$	—	$	—	$	—
Derivative financial instruments	—		6,318		—		6,318
Total	$	—	$	6,318	$	—	$	6,318
Liabilities
Derivative financial instruments	$	—	$	2,258	$	—	$	2,258
Total	$	—	$	2,258	$	—	$	2,258

* Represents short-term investments carried on fair value option under ASC 825 "Financial Instruments" as of December 31, 2017

Derivatives and Hedge Accounting (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Value of Foreign Currency Exchange Contracts

The following tables set forth the fair value of the foreign currency exchange contracts and their location on the consolidated financial statements:



Derivatives designated as hedging instruments :	As of
Foreign currency exchange contracts	December 31, 2017		December 31, 2016
Other current assets	$	10,892	$	3,211
Other assets	$	7,360	$	2,994
Accrued expense and other current liabilities	$	481	$	1,430
Other non-current liabilities	$	322	$	828

Derivatives not designated as hedging instruments :	As of
Foreign currency exchange contracts	December 31, 2017		December 31, 2016
Other current assets	$	46	$	113
Accrued expense and other current liabilities	$	74	$	—

Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income



Derivatives in hedging relationships	Year ended December 31,
Forward Exchange Contracts :	2017			2016
(Gain)/loss recognized in AOCI
Derivatives in cash flow hedging relationships	$	(19,802	)	$	(5,129	)

(Gain)/loss recognized in consolidated statements of income
Derivatives in fair value hedging relationships	$	(5,056	)	$	(4,790	)



Location and amount of (gain)/loss recognized in consolidated statements of income for cash flow and fair value hedging relationships
	Year ended December 31,
	2017*						2016*
Type of hedging relationships	As per consolidated statements of income			(Gain)/loss on foreign currency exchange contracts			As per consolidated statements of income			(Gain)/loss on foreign currency exchange contracts
Cash flow hedging relationships
Location in consolidated statements of income where (gain)/loss was reclassed from AOCI

Cost of revenue	$	495,586		$	(5,465	)	$	—		$	—
General & administrative expenses	$	102,567		(960		)	$	—		—
Selling & marketing expenses	$	53,383		(103		)	$	—		—
Depreciation & amortization	$	38,549		(371		)	$	—		—
Foreign exchange gain, net	$	(2,839	)	—			$	(5,597	)	(2,669		)
				$	(6,899	)				$	(2,669	)

Fair value hedging relationships
Location in consolidated statements of income where (gain)/loss was recognized

Foreign exchange gain, net	$	(2,839	)	$	(5,056	)	$	(5,597	)	$	(4,790	)
	$	(2,839	)	$	(5,056	)	$	(5,597	)	$	(4,790	)

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Summary of Change in Projected Benefit Obligation

The following table sets forth the activity and the funded status of the Gratuity Plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods:



	As of
	December 31, 2017			December 31, 2016
Change in projected benefit obligation:
Projected benefit obligation at the beginning of the year	$	9,711		$	7,909
Service cost	1,933			1,601
Interest cost	645			599
Benefits paid	(1,001		)	(837		)
Actuarial (gain)/loss	(1,471		)	677
Acquisition	—			47
Effect of exchange rate changes	488			(285		)
Projected benefit obligation at the end of the year	$	10,305		$	9,711
Unfunded amount–non-current	$	3,377		$	1,977
Unfunded amount–current	13			2,094
Total accrued liability	$	3,390		$	4,071

Accumulated benefit obligation	$	7,022		$	6,533

Net Gratuity Cost

Net gratuity cost includes the following components:



	Year ended December 31,
	2017			2016			2015
Service cost	$	1,933		$	1,601		$	1,638
Interest cost	645			599			550
Expected return on plan assets	(401		)	(416		)	(385		)
Amortization of Actuarial loss	256			90			211
Net gratuity cost	$	2,433		$	1,874		$	2,014

Summary of Components Accumulated Other Comprehensive Loss



	December 31,
	2017			2016
Net actuarial gain/(loss)	$	697		$	(831	)
Net prior service cost	(8		)	(9		)
Deferred taxes	74			342
Accumulated other comprehensive gain/(loss), net of tax	$	763		$	(498	)

Summary of Weighted Average Actuarial Assumptions

The weighted average actuarial assumptions used to determine benefit obligations and net periodic gratuity cost are:



	December 31,
	2017		2016		2015
Discount rate	7.0	%	6.8	%	7.8	%
Rate of increase in compensation levels	9.1	%	9.2	%	8.4	%
Expected long term rate of return on plan assets per annum	8.3	%	9.0	%	9.0	%

Summary of Expected Benefit Payments



Expected benefit payments during the year ending December 31,
2018	$	2,011
2019	$	1,772
2020	$	1,531
2021	$	1,302
2022	$	1,029
2023 to 2027	$	3,206

Change in Plan Assets



Change in Plan Assets
Plan assets at January 1, 2016	$	4,923
Actual return	450
Employer contribution	1,242
Benefits paid*	(837		)
Effect of exchange rate changes	(138		)
Plan Assets at December 31, 2016	$	5,640
Actual return	202
Employer contribution	1,700
Benefits paid*	(1,001		)
Effect of exchange rate changes	374
Plan assets at December 31, 2017	$	6,915

* All benefits payments were made through the plan assets during the year ended December 31, 2017 and December 31, 2016.

Leases (Tables)

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Future Minimum Lease Payments under Capital Leases



During the next twelve months ending December 31,
2018	$	330
2019	201
2020	127
2021	64
Total minimum lease payments	722
Less: amount representing interest	124
Present value of minimum lease payments	598
Less: current portion	267
Long term capital lease obligation	$	331

Future Minimum Lease Payments under Non-Cancelable Operating Lease Agreements Expiring After December 31, 2017



During the next twelve months ending December 31,
2018	$	20,850
2019	17,802
2020	14,840
2021	12,888
2022	10,234
2023 and thereafter	28,273
Future minimum lease payment	$	104,887

Schedule of Rent Expense



	Year ended December 31,
	2017		2016		2015
Rent expense	$	24,015	$	21,382	$	19,943

Schedule of Deferred Rent



	As of
	December 31, 2017		December 31, 2016
Cancelable and non-cancelable operating leases	$	8,959	$	7,915

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Summary of Components of Income Before Income Taxes

The components of income before income taxes consist of the following:



	Year ended December 31,
	2017		2016		2015
Domestic	$	4,626	$	12,652	$	25,045
Foreign	80,408		71,232		50,731
	$	85,034	$	83,884	$	75,776

Summary of Income Tax Expense

The income tax expense consists of the following:



	Year ended December 31,
	2017			2016			2015
Current provision:
Domestic	$	17,407		$	7,107		$	9,951
Foreign	18,008			18,428			12,022
	$	35,415		$	25,535		$	21,973
Deferred provision/(benefit):
Domestic	$	2,618		$	(2,506	)	$	3,041
Foreign	(1,887		)	(878		)	(803		)
	$	731		$	(3,384	)	$	2,238
Income tax expense	$	36,146		$	22,151		$	24,211

Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes

The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows:



	Year ended December 31,
	2017			2016			2015
Expected tax expense	$	29,762		$	29,361		$	26,521
Change in valuation allowance	(21		)	22			19
Impact of tax holiday	(4,396		)	(4,027		)	(2,991		)
Foreign tax rate differential	(2,616		)	(2,716		)	(2,797		)
Deferred tax (benefit)/provision	(1,887		)	(878		)	(803		)
Unrecognized tax benefits and interest	(3,905		)	495			324
State taxes, net of Federal taxes	339			202			1,327
Non-deductible expenses	825			144			26
Prior year tax expense/(benefit)	—			—			2,450
US Tax Reform Act impact	29,185			—			—
Excess tax benefit for stock-based compensation	(9,797		)	—			—
Other	(1,343		)	(452		)	135
Tax expense	$	36,146		$	22,151		$	24,211

Summary of Components of Deferred Tax Balances

The components of the deferred tax balances as of December 31, 2017 and 2016 are as follows:



	As of
	December 31, 2017			December 31, 2016
Deferred tax assets:
Tax credit carry forward	$	1,474		$	4,806
Depreciation and amortization	2,183			3,765
Stock-based compensation	7,647			10,385
Accrued employee costs and other expenses	3,673			5,130
Net operating loss carry forwards	2,068			1,856
Unrealized exchange loss	252			2,099
Deferred rent	2,064			1,307
Others	1,007			484
	$	20,368		$	29,832
Valuation allowance	(108		)	(454		)
Deferred tax assets	$	20,260		$	29,378
Deferred tax liabilities:
Unrealized exchange gain	$	5,069		$	1,414
Intangible assets	4,648			13,165
Others	1,958			—
Deferred tax liabilities:	$	11,675		$	14,579
Net deferred tax assets	$	8,585		$	14,799

Summary of Activity Related to Gross Unrecognized Tax Benefits

The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2017 through December 31, 2017



Balance as of January 1, 2017	$	3,087
Increases related to prior year tax positions	—
Decreases related to prior year tax positions	(2,520		)
Increases related to current year tax positions	169
Decreases related to current year tax positions	—
Effect of exchange rate changes	88
Balance as of December 31, 2017	$	824

Stock Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

The following costs related to the Company’s stock-based compensation plan are included in the consolidated statements of income:



	Year ended December 31,
	2017		2016		2015
Cost of revenue	$	4,600	$	3,664	$	2,895
General and administrative expenses	10,363		8,372		6,077
Selling and marketing expenses	8,078		7,734		7,075
Total	$	23,041	$	19,770	$	16,047

Stock Based Compensation Stock Option Activity

Stock option activity under the Company’s stock plans is shown below:



	Number of Options		Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Life (Years)
Outstanding at December 31, 2016	811,902		$	16.31	$	27,718	2.96
Granted	—		—
Exercised	(552,339	)	15.50
Forfeited	—		—
Outstanding at December 31, 2017	259,563		$	18.03	$	10,985	2.76
Vested and exercisable at December 31, 2017	259,563		$	18.03	$	10,985	2.76

Company's Stock Options Outstanding and Stock Options Vested and Exercisable

The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable at December 31, 2017:



	Options Outstanding, Vested and Exercisable
Range of Exercise Prices	Shares	Weighted- Average Exercise Price
$8.00 to $15.00	98,784	$	9.64
$15.01 to $21.00	36,516	19.05
$21.01 to $28.00	124,263	24.40
Total	259,563	$	18.03

Weighted Average Valuation Assumptions for Market Condition Performance Restricted Stock Units

The fair value of each MU granted to employees is estimated on the date of grant using the following weighted average assumptions:



	Year ended December 31,
	2017		2016		2015
Dividend yield	—		—		—
Expected life (years)	2.86		2.85		2.84
Risk free interest rate	1.40	%	0.88	%	0.98	%
Volatility	23.8	%	28.0	%	30.3	%

Restricted Stock and Restricted Stock Units

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock Activity Under Company's Stock Plans

Restricted stock and restricted stock unit activity under the Company’s stock plans is shown below:



	Restricted Stock				Restricted Stock Units
	Number		Weighted- Average Fair Value		Number		Weighted- Average Fair Value
December 31, 2016 ⁽¹⁾	246,940		$	42.42	1,256,288		$	37.38
Granted	—		—		391,927		48.02
Vested	(60,168	)	42.30		(489,176	)	34.52
Forfeited	(4,505	)	35.11		(112,040	)	41.50
December 31, 2017 ⁽¹⁾	182,267		$	42.64	1,046,999		$	42.26

Performance Based Stock Awards

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock Activity Under Company's Stock Plans

Performance restricted stock unit activity under the Company’s stock plans is shown below:



	Revenue Based PRSUs				Market Condition Based PRSUs
	Number		Weighted Avg Fair Value		Number		Weighted Avg Fair Value
Outstanding at December 31, 2016	115,174		$	41.70	215,171		$	47.42
Granted	62,113		47.73		62,100		54.10
Adjustment upon final determination of level of performance goal achievement*	(9,320	)	34.75		154,513		39.60
Vested	(45,192	)	34.75		(309,026	)	39.60
Forfeited	(9,585	)	44.35		(9,584	)	58.85
Outstanding at December 31, 2017	113,190		$	48.13	113,174		$	60.80

Summary of Significant Accounting Policies - Summary of Revenues and Reimbursements Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Revenues and reimbursements	$ 17,982	$ 21,812	$ 18,848

Summary of Significant Accounting Policies - Accounts Receivable Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Allowance for doubtful accounts	$ 2,923	$ 241
Unbilled accounts receivable	$ 49,125	$ 34,785

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Schedule of Property and Equipment, Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2017
Buildings
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
Minimum \| Network equipment and computers
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Minimum \| Software
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Minimum \| Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Minimum \| Office furniture and equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Minimum \| Motor vehicles
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years
Maximum \| Network equipment and computers
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Maximum \| Software
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Maximum \| Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years
Maximum \| Office furniture and equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years
Maximum \| Motor vehicles
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years

Summary of Significant Accounting Policies - Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives (Detail)	12 Months Ended
	Dec. 31, 2017
Customer relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of intangible assets	3 years
Customer relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of intangible assets	15 years
Leasehold benefits \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of intangible assets	3 years
Leasehold benefits \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of intangible assets	8 years
Developed technology \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of intangible assets	5 years
Developed technology \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of intangible assets	10 years
Non-compete agreements \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of intangible assets	1 year
Non-compete agreements \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of intangible assets	5 years
Trade names and trademarks \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of intangible assets	3 years
Trade names and trademarks \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives of intangible assets	10 years

Summary of Significant Accounting Policies - Share-Based Compensation Additional Information (Details) - USD ($)
$ in Thousands

12 Months Ended

Jun. 19, 2015

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period

4 years

Excess tax benefit

$ 9,797

$ 0

Accounting Standards Update 2016-09

^[1]

(1,453)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Deferred tax effect

1,453

Additional Paid-in Capital

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Additional Paid-in Capital | Accounting Standards Update 2016-09

^[1]

(5,999)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

5,999

Retained Earnings

Retained Earnings | Accounting Standards Update 2016-09

^[1]

4,546

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 4,546

Revenue Based PRSUs

Percentage of target shares an employee can earn

200.00%

Revenue Based PRSUs | Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Percentage of target shares an employee can earn

200.00%

Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Performance based percentage

100.00%

Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Performance based percentage

50.00%

Vesting period

3 years

Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Performance based percentage

50.00%

Vesting period

3 years

Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Percentage of target shares an employee can earn

200.00%

[1]	Refer note 2(o) to consolidated financial statements for details.

Segment & Geographical Information - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017 operating_segment Segment
Segment Reporting [Abstract]
Number of operating segments	8
Number of operating segments, operations management	6
Number of operating segments, finance and accounting	1
Number of operating segments, company provides operations management services	6
Number of operating segments, non-operations management services	2
Number of reportable segments \| Segment	2

Segment & Geographical Information - Revenues and Cost of Revenues for Company's Reportable Segments (Detail) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) operating_segment	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net	$ 197,875	$ 192,345	$ 189,057	$ 183,033	$ 177,274	$ 171,200	$ 170,478	$ 167,036	$ 762,310	$ 685,988	$ 628,492
Cost of revenues (exclusive of depreciation and amortization)									495,586	447,956	402,917
Gross profit	68,506	69,156	65,211	63,851	61,490	59,433	58,452	58,657	266,724	238,032	225,575
Operating expenses									194,499	173,810	158,232
Foreign exchange gain, interest expense and other income, net									12,809	19,662	8,433
Income tax expense									36,146	22,151	24,211
Net income	$ (9,355)	$ 21,077	$ 20,378	$ 16,788	$ 15,488	$ 16,050	$ 16,375	$ 13,820	$ 48,888	61,733	51,565
Number of operating segments, industry focused \| operating_segment									5
Number of operating segments, finance and accounting \| operating_segment									1
BPM and related services
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net									$ 552,367	520,254	506,341
Analytics services
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net									209,943	165,734	122,151
Insurance
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net									234,794	206,327	199,878
Cost of revenues (exclusive of depreciation and amortization)									159,529	146,203	134,196
Gross profit									75,265	60,124	65,682
Healthcare
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net									77,013	68,656	55,209
Cost of revenues (exclusive of depreciation and amortization)									49,483	44,098	37,224
Gross profit									27,530	24,558	17,985
TT&L
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net									70,951	69,366	62,264
Cost of revenues (exclusive of depreciation and amortization)									41,409	41,962	37,506
Gross profit									29,542	27,404	24,758
F&A
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net									86,527	79,416	78,504
Cost of revenues (exclusive of depreciation and amortization)									51,445	48,302	46,846
Gross profit									35,082	31,114	31,658
All Other
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net									83,082	96,489	110,486
Cost of revenues (exclusive of depreciation and amortization)									56,697	61,050	68,307
Gross profit									26,385	35,439	42,179
Analytics
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net									209,943	165,734	122,151
Cost of revenues (exclusive of depreciation and amortization)									137,023	106,341	78,838
Gross profit									$ 72,920	$ 59,393	$ 43,313

Segment & Geographical Information - Revenues and Property and Equipment, Net Based on Geographical Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues, net
Revenues, net	$ 197,875	$ 192,345	$ 189,057	$ 183,033	$ 177,274	$ 171,200	$ 170,478	$ 167,036	$ 762,310	$ 685,988	$ 628,492
Property, Plant and Equipment, net
Property and equipment, net	66,757				49,029				66,757	49,029
United States
Revenues, net
Revenues, net									626,336	554,945	496,418
Property, Plant and Equipment, net
Property and equipment, net	16,371				10,809				16,371	10,809
United Kingdom
Revenues, net
Revenues, net									108,640	109,905	108,868
Rest of World
Revenues, net
Revenues, net									27,334	21,138	23,206
Property, Plant and Equipment, net
Property and equipment, net	3,026				2,958				3,026	2,958
Total Non-United States
Revenues, net
Revenues, net									135,974	131,043	$ 132,074
India
Property, Plant and Equipment, net
Property and equipment, net	39,143				23,362				39,143	23,362
Philippines
Property, Plant and Equipment, net
Property and equipment, net	$ 8,217				$ 11,900				$ 8,217	$ 11,900

Quarterly Financial Data (Unaudited) - Summary of Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Revenues, net	$ 197,875	$ 192,345	$ 189,057	$ 183,033	$ 177,274	$ 171,200	$ 170,478	$ 167,036	$ 762,310	$ 685,988	$ 628,492
Gross profit	68,506	69,156	65,211	63,851	61,490	59,433	58,452	58,657	266,724	238,032	225,575
Net income/(loss)	$ (9,355)	$ 21,077	$ 20,378	$ 16,788	$ 15,488	$ 16,050	$ 16,375	$ 13,820	$ 48,888	$ 61,733	$ 51,565
Earnings/(loss) per share:
Basic (in dollars per share)	$ (0.27)	$ 0.62	$ 0.60	$ 0.50	$ 0.46	$ 0.48	$ 0.49	$ 0.41	$ 1.44	$ 1.84	$ 1.55
Diluted (in dollars per share)	$ (0.27)	$ 0.60	$ 0.58	$ 0.48	$ 0.45	$ 0.46	$ 0.47	$ 0.40	$ 1.39	$ 1.79	$ 1.51
Weighted-average number of shares used in computing earnings per share:
Basic (in shares)	34,086,711	33,838,374	33,819,320	33,845,560	33,638,170	33,624,401	33,621,444	33,380,028	33,897,916	33,566,367	33,298,104
Diluted (in shares)	34,086,711	35,043,987	34,993,226	35,108,882	34,714,308	34,675,485	34,510,400	34,351,657	35,110,210	34,563,319	34,178,340
Stock compensation expense	$ 6,270	$ 5,708	$ 5,107	$ 5,956	$ 5,027	$ 4,484	$ 4,450	$ 5,809	$ 23,041	$ 19,770	$ 16,047
Amortization of intangibles	$ 3,483	$ 3,487	$ 3,507	$ 3,498	$ 3,592	$ 2,848	$ 2,718	$ 2,715	$ 13,975	$ 11,873	$ 10,226
Weighted average common shares considered anti-dilutive and not included in computing diluted earnings per share	1,206,335								151,961	92,538	73,896

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Numerators:
Net income	$ (9,355)	$ 21,077	$ 20,378	$ 16,788	$ 15,488	$ 16,050	$ 16,375	$ 13,820	$ 48,888	$ 61,733	$ 51,565
Denominators:
Basic weighted average common shares outstanding	34,086,711	33,838,374	33,819,320	33,845,560	33,638,170	33,624,401	33,621,444	33,380,028	33,897,916	33,566,367	33,298,104
Dilutive effect of share based awards (in shares)									1,212,294	996,952	880,236
Diluted weighted average common shares outstanding	34,086,711	35,043,987	34,993,226	35,108,882	34,714,308	34,675,485	34,510,400	34,351,657	35,110,210	34,563,319	34,178,340
Earnings per share:
Basic (in dollars per share)	$ (0.27)	$ 0.62	$ 0.60	$ 0.50	$ 0.46	$ 0.48	$ 0.49	$ 0.41	$ 1.44	$ 1.84	$ 1.55
Diluted (in dollars per share)	$ (0.27)	$ 0.60	$ 0.58	$ 0.48	$ 0.45	$ 0.46	$ 0.47	$ 0.40	$ 1.39	$ 1.79	$ 1.51
Weighted average common shares considered anti-dilutive and not included in computing diluted earnings per share	1,206,335								151,961	92,538	73,896

Other Income, net - Summary of Other Income, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Nonoperating Income (Expense) [Abstract]
Interest and dividend income	$ 1,625	$ 1,673	$ 2,904
Gain on mutual fund investments	8,766	8,087	3,902
Change in fair value of earn-out consideration	0	4,060	0
Other, net	1,468	1,588	221
Other income, net	$ 11,859	$ 15,408	$ 7,027