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Net Revenues | 3 Months Ended
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Mar. 31, 2024
Revenues [Abstract] |
Net revenues | Net revenues Disaggregation of revenue The Company disaggregates its revenue as revenue from either Digital Operations services or Data-Tech-AI services based on the nature of the services provided. The Company's Digital Operations services embed digital, advanced analytics and cloud-based offerings into its business process outsourcing solutions where the Company transforms and runs its clients’ operations, with an aim to achieve higher levels of end-to-end performance. These services allow enterprises to be more flexible and help them focus on high-value work to better compete in their industries. The Company's Digital Operations solutions also include certain IT support services for legacy applications, including end user computing support and infrastructure production support. The Company's Data-Tech-AI services focus on designing and building solutions that harness the power of technology, data and advanced analytics, AI, and cloud-based software-as-a-service offerings to help transform the Company's clients’ businesses and operations. These services are advisory, implementation and execution in nature. The Company provides consultative advice to clients as well as technology engineering support and migration and optimization of client’s data and technology enterprise infrastructures. Using human-centric design, the Company helps clients build new products and services, creates digital workspaces, and drives customer, client, employee and partner engagement. During the three months ended March 31, 2024, the Company realigned as Data-Tech-AI services certain services that had previously been designated as Digital Operations services based on the nature of work performed and the mode of delivery for these particular services, which have evolved over time. Accordingly, the Company has updated the classification of revenue derived from Digital Operations services and Data-Tech-AI services for the three months ended March 31, 2023 to present comparable information. In the following table, the Company’s revenue is disaggregated by the nature of services provided:
| Three months ended March 31,
| 2023 |  | 2024
Data-Tech-AI | $ | 509,953 |  |  | $ | 523,835 |
Digital Operations | 579,366 |  | 607,402
Net revenues | $ | 1,089,319 |  |  | $ | 1,131,237 |
All three of the Company's segments include revenue from both Data-Tech-AI and Digital Operations services. See Note 18 for additional information. 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 3 for details on the Company’s accounts receivable and allowance for credit losses. 19. Net revenues (Continued) The following table shows the details of the Company’s contract balances:
| As of December 31, 2023 |  | As of March 31, 2024
Contract assets (Note a) | $ | 33,370 |  |  | $ | 39,355 |
Contract liabilities (Note b) |  |  |
Deferred transition revenue | $ | 116,577 |  |  | $ | 121,812 |
Advance from customers | $ | 55,251 |  |  | $ | 53,575 |
(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. 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, 2023 and 2024 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, 2023 and 2024 that was included in the Company's contract liabilities balance at the beginning of the period was $71,504 and $51,569, respectively. The following table includes estimated revenue expected to be recognized in the future related to remaining performance obligations as of March 31, 2024:
Particulars |  | Total |  | Less than 1 year |  | 1-3 years |  | 3-5 years |  | After 5 years
Transaction price allocated to remaining performance obligations |  | $ | 175,387 |  |  | $ | 111,802 |  |  | $ | 52,066 |  |  | $ | 11,131 |  |  | $ | 388 |
The following table provides details of the Company’s contract cost assets:
| Three months ended March 31,
| 2023 |  | 2024
Particulars | Sales incentive programs |  | Transition activities |  | Sales incentive programs |  | Transition activities
Opening balance | $ | 34,805 |  |  | $ | 181,865 |  |  | $ | 41,964 |  |  | $ | 160,579 |
Closing balance | 36,231 |  | 166,315 |  | 40,194 |  | 164,724
Amortization | 7,074 |  | 23,980 |  | 6,945 |  | 17,322

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