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Net Revenues
 3 Months Ended
Mar. 31, 2023
Revenues [Abstract]  
Net revenues Net revenues
Disaggregation of revenue
 
In the following table, the Company’s revenue is disaggregated by the nature of services provided:
 
Three months ended March 31,
20222023
Data-Tech-AI$466,746 $485,233 
Digital Operations601,697604,086
Net revenues$1,068,443 $1,089,319 

All three of the Company's segments include revenue from both Data-Tech-AI and Digital Operations. See Note 19 for additional information.
During the second quarter of 2022, the Company's management modified the manner in which it disaggregates revenue for reporting and internal tracking purposes, and the Company now reports revenue disaggregated by the nature of services provided to the client, namely either Data-Tech-AI or Digital Operations. Prior to the second quarter of 2022, the Company disaggregated its revenue as revenue from the General Electric Company (GE) or revenue from Global Clients (other than GE).
Contract balances
Accounts receivable include amounts for services that the Company has performed but for which payment has not been received. The Company typically follows a 30-day billing cycle and, as such, at any point in time may have accrued up to 30 days of revenues that have not been billed. The Company has determined that in instances where the timing of revenue recognition differs from the timing of invoicing, the related contracts generally do not include a significant financing component. Refer to Note 4 for details on the Company’s accounts receivable and allowance for credit losses.
The following table shows the details of the Company’s contract balances:
 
As of December 31, 2022As of March 31, 2023
Contract assets (Note a)$18,347 $16,127 
Contract liabilities (Note b)
Deferred transition revenue$128,726 $118,110 
Advance from customers$88,056 $81,288 

(a)Included in "prepaid expenses and other current assets" and "other assets" in the consolidated balance sheet.

(b)Included in "accrued expenses and other current liabilities" and "other liabilities" in the consolidated balance sheet.


As of December 31, 2022 and March 31, 2023, the Company reclassified certain contract assets amounting to $2,168 and $0, respectively, and contract liabilities amounting to $649 and $0, respectively, as assets and liabilities held for sale. See Note 8 for additional information.
20. Net revenues (Continued)

Contract assets represent the contract acquisition fees or other upfront fees paid to a customer. Such costs are amortized over the expected period of benefit and recorded as an adjustment to the transaction price and deducted from revenue. The Company’s assessment did not indicate any significant impairment losses on its contract assets for the periods presented.

Contract liabilities include that portion of revenue for which payments have been received in advance from customers. The Company also defers revenues attributable to certain process transition activities for which costs have been capitalized by the Company as contract fulfillment costs. Consideration received from customers, if any, relating to such transition activities is also included as part of contract liabilities. The contract liabilities are included within “Accrued expenses and other current liabilities” and “Other liabilities” in the unaudited consolidated balance sheets. The revenues are recognized as (or when) the performance obligation is fulfilled under the contract with the customer.
 
Changes in the Company’s contract asset and liability balances during the three months ended March 31, 2022 and 2023 were a result of normal business activity and not materially impacted by any other factors.

The amount of revenue recognized during the three months ended March 31, 2022 and 2023 that was included in the Company's contract liabilities balance at the beginning of the period was $46,625 and $71,504, respectively.

The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of March 31, 2023:

ParticularsTotalLess than 1 year1-3 years3-5 yearsAfter 5 years
Transaction price allocated to remaining performance obligations$199,398 $147,260 $42,666 $8,951 $521 

The following table provides details of the Company’s contract cost assets:
Three months ended March 31,
20222023
ParticularsSales incentive programsTransition activitiesSales incentive programsTransition activities
Opening balance$32,296 $206,498 $34,805 $181,865 
Closing balance30,833203,93936,231166,315
Amortization6,34020,5387,07423,980

As of December 31, 2022 and March 31, 2023, the Company reclassified certain contract cost assets amounting to $1,247 and $0, respectively, to assets held for sale. See Note 8 for additional information.