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<SEC-DOCUMENT>0000950134-08-017961.txt : 20090309
<SEC-HEADER>0000950134-08-017961.hdr.sgml : 20090309
<ACCEPTANCE-DATETIME>20081014162525
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950134-08-017961
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20081014

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TELETECH HOLDINGS INC
		CENTRAL INDEX KEY:			0001013880
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				841291044
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		9197 S PEORIA STREET
		CITY:			ENGLEWOOD
		STATE:			CO
		ZIP:			80112
		BUSINESS PHONE:		303-397-8100

	MAIL ADDRESS:	
		STREET 1:		9197 S PEORIA STREET
		CITY:			ENGLEWOOD
		STATE:			CO
		ZIP:			80112
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>corresp</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">October&nbsp;13, 2008

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><u><I>Via EDGAR</I></u>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
Division of Corporation Finance<BR>
100 F Street, N.E.<BR>
Washington, DC 20549

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Attention: H. Christopher Owings and John Fieldsend

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Re: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>TeleTech Holdings, Inc.</I><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u><I>Annual Report on Form 10-K for the Year Ended December&nbsp;31, 2007 (File No.&nbsp;1-11919)</I></u>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ladies and Gentlemen:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have set forth below the responses of TeleTech Holdings, Inc. (the &#147;Company&#148;) to comments
of the staff of the Securities and Exchange Commission (the &#147;Staff&#148;) set forth in a letter dated
September&nbsp;29, 2008 from H. Christopher Owings, Assistant Director, to Kenneth D. Tuchman, Chief
Executive Officer of the Company. The Staff&#146;s comments were made with respect to the Annual Report
on Form 10-K of the Company with respect to the year ended December&nbsp;31, 2007 (the &#147;Form 10-K&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For convenient reference, the Company has set forth below in italics each of the Staff&#146;s
comments set forth in the letter dated September&nbsp;29, 2008 and has keyed its responses to the
heading and numbering of those comments.
</DIV>
<!-- link2 "Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition..., page 26" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition..., page 26</I></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>In future filings, please expand this section to discuss known material trends, demands,
commitments, events, or uncertainties that will have, or are reasonably likely to have, a
material impact on your financial condition, operating performance, revenues, or income, or
result in your liquidity decreasing or increasing in any material way. See Item&nbsp;303 of
Regulation&nbsp;S-K and SEC Release No.&nbsp;33-8350. For example, on page 27, you state that you
believe that the global demand for your services is being fueled by four trends. Please
explain why you believe these trends are occurring and how they will impact you in the future.
As another example, in your Our Strategy subsection on page 27, you state that you aim to
improve your competitive position by investing in a growing suite of new and innovated
business process services across your targeted industries. In this regard, you state that
your business strategy includes five elements. Please discuss in greater detail these new and
innovated business process services and explain how you believe they and your business
strategy elements will impact your operations in the future. As a further example, on page
28, you state that you have experienced strong growth in your offshore delivery centers.
Please discuss whether you believe this growth will continue going forward and explain the
reasons for your beliefs.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In future filings, we will expand the MD&#038;A section to discuss known material trends, demands,
commitments, events, or uncertainties, that will have, or are reasonably likely to have, a
material impact on our financial condition, operating performance, revenues, or income, or
result in our liquidity decreasing or increasing in any material way as specified in your
comment above. Please see our proposed revisions to the disclosure in our 2007 Form 10-K,
which are set forth (in pertinent part) in Appendix&nbsp;A.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Results of Operations, page 54</I></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>In this subsection and in your Liquidity and Capital Resources subsection on page 59, you
discuss the changes in operation and cash flow amounts between the periods. However, the
dollar amounts you disclose mostly</I>
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 2

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>repeat information that is available from the face of the financial statements. Therefore, in
future filings, please expand this information to explain the reasons for period-to-period
changes. In this regard, where you identify intermediate causes of changes in your operating
results, please be sure to fully describe the reasons underlying these causes. Finally, where
changes in items are caused by more than one factor, please quantify the effect of each factor
on the change, if possible. See Item&nbsp;303 of Regulation&nbsp;S-K and SEC Release No.&nbsp;33-8350.
Please consider the following examples, but realize that these are examples only and not an
exhaustive list of the revisions you should contemplate making:</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>On page 54, you state that the revenue for North American BPO for 2007 compared to
2006 increased from $814.4&nbsp;million to $955.8&nbsp;million due to new client programs, the
expansion of existing client programs, and the inclusion of full-year revenue from DAC.
Please discuss the underlying reasons for each of these factors that caused the revenue
growth from 2006 to 2007 and quantify their effect on that growth.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>On page 58, you state that the selling, general, and administrative expenses for North
American BPO increased from $83.6&nbsp;million in 2005 to $112.7&nbsp;million in 2006 due to higher
stock option expense, the acquisition of DAC, and the increased allocation of
corporate-level operating expenses. Please discuss the underlying reasons for each of
these factors and quantify their effect on the change.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>On page 60, you state that the change in cash flows from financing activities from
2006 to 2007 was due to a decrease in net borrowings on your line of credit, a decrease
in proceeds from stock option exercises, an increase of payments to minority
shareholders, and an increase in purchases of your outstanding stock. Also, you state
that the change from 2005 to 2006 was due to a decrease in the purchase of your
outstanding stock and an increase in exercises of stock options. Please discuss the
underlying reasons for each of these factors and quantify their effect on the changes.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In future filings, we will expand the results of operations and liquidity and capital
resources sections to discuss the information requested in your comment above. We note that
the examples above pertain to the year ended 2007 compared to 2006 and the year ended 2006
compared to 2005. We have proposed changes to our disclosure for the year ended 2007 compared
to 2006 as an example of how we will change our disclosures in future filings, as these
disclosures will be carried forward to our 2008 Form 10-K. Please see these proposed
revisions to the disclosure in our 2007 Form 10-K, which are set forth (in pertinent part) in
Appendix&nbsp;A.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Obligations and Future Capital Requirements, page 59</I></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note you disclose that you have outstanding off-balance sheet obligations. In future
filings, please provide the disclosure required by Regulation&nbsp;S-K Item&nbsp;</I><I>303(a)(4)</I><I> in a
separately-captioned section.</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>TeleTech&#146;s off-balance sheet obligations consist of purchase obligations and operating lease
commitments. The Company&#146;s purchase obligations are for goods and/or services contracted
through outstanding purchase orders which are not recognized as liabilities in the Company&#146;s
Consolidated Balance Sheet until such goods and/or services are received. We did not have any
off-balance-sheet arrangements as defined in Item&nbsp;303(a)(4)(ii) of SEC Regulation&nbsp;S-K.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In future filings we will clarify our disclosure similar to our proposed revisions to the
disclosure in our Form&nbsp;2007 Form 10-K as presented below:</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes our contractual obligations as of December&nbsp;31, 2007.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 3

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Less</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>than</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>1 to 3</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>3 to 5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Over 5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Years</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit Facility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">65,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">65,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital lease obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,870</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase obligations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,201</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,487</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operating lease commitments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,790</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,588</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,437</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155,372</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">57,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">83,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">117,709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">31,575</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">290,129</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Contractual obligations to be paid in a foreign currency are translated at the
period end exchange rate.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Purchase obligations primarily consist of outstanding purchase orders for goods or
services not yet received, which are not recognized as liabilities in the Company&#146;s
Consolidated Balance Sheet until such goods and/or services are received.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The contractual obligation table excludes our FIN 48 liabilities of $1.6&nbsp;million
because we cannot reliably estimate the timing of cash payments. See Note 12 of the
Notes to the Consolidated Financial Statements for further discussion.</TD>
</TR>

</TABLE>
</DIV>
<!-- link2 "Item&nbsp;9A. Controls and Procedures, page 64" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Item&nbsp;9A. Controls and Procedures, page 64</I></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note that your management has concluded that your disclosure controls and procedures and
your internal control over financial reporting were not effective as of December&nbsp;31, 2007.
Also, we note that in your Inherent Limitations of Internal Controls subsection on page 68,
you state that your system of controls is designed to provide reasonable, not absolute,
assurance regarding the reliability and integrity of your accounting and financial reporting.
Given the limitations you noted and the design of your accounting and financial reporting
reliability, management&#146;s conclusions about the effectiveness of your disclosure controls and
procedures and your internal control over financial reporting is unclear. In future filings,
please revise this disclosure to state, in clear and unqualified language, the conclusions
reached by your chief executive officer and chief financial officer on the effectiveness of
your disclosure controls and procedures. In this regard, if true, you may disclose that your
principal executive officer and principal financial officer concluded that your disclosure
controls and procedures are effective or are not effective at a reasonable assurance level.
In the alternative, please remove the section discussing the level of assurance of your
accounting and financial reporting. See Section&nbsp;II.F.4 of Management&#146;s Reports on Internal
Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic
Reports, SEC Release No.&nbsp;33-8238, available on our website at</I>
<U>&#060;<I>http://www.sec.gov/rules/final/33-8238.htm</I>&#062;</U><I>.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In future filings, we will disclose that our principal executive officer and principal
financial officer concluded that our disclosure controls and procedures are effective at a
reasonable assurance level or are not effective.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Evaluation of Disclosure Controls and Procedures, page 65</I></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note your disclosure in the last paragraph of this subsection in which you state that you
believe that the consolidated financial statements presented in this document &#147;present, in all
material respects, &#091;y&#093;our financial position, results of operations and cash flows as of the
dates, and for the periods presented, in conformity with generally accepted accounting
principles in the United States of America.&#148; Please tell us the purpose of this disclosure and
why it is appropriate.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The purpose of the disclosure was to explain that, although management had concluded that our
disclosure controls and procedures were not effective at December&nbsp;31, 2007, we had performed
additional procedures (as described in the four bullet points at the top of page 65) to ensure
that our consolidated financial statements were presented in conformity with generally
accepted accounting principles in the United States of America. In future filings, we will
move this disclosure to immediately follow the four bullet points at the top of page 65 of our
2007 Form 10-K, thereby clarifying the relationship between the disclosure and the additional
procedures that we performed. The revised disclosure will state: &#147;Based upon these
procedures, we believe that the consolidated financial statements in this Form 10-K (or Form
10-Q, as applicable) fairly present, in all material respects, our financial position, results
of operations and cash flows as of the dates, and for the
</TD>
</TR>
</TABLE>
</DIV>
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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 4

</DIV>

<DIV style="margin-top: 6pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>periods presented, in conformity with generally accepted accounting principles in the United
States of America.&#148;</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Remediation Plan, page 66</I></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>In the first paragraph of this subsection, you state that management has taken immediate
action to remediate the material weaknesses identified in your disclosure controls and
procedures and your internal control over financial reporting. In this regard, you have
listed a series of remediation efforts that are intended both to address the identified
material weaknesses and to enhance your overall financial control environment. In future
filings, for each of these efforts, please disclose the status of its implementation and
discuss how it would address your material weaknesses and enhance your financial control
environment.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the Company&#146;s Quarterly Report on Form 10-Q for the period ended June&nbsp;30, 2008, we
disclosed the status of our remediation efforts and described those efforts that have been
completed and those that are still being implemented. In the Company&#146;s Quarterly Report on
Form 10-Q for the period ended September&nbsp;30, 2008, we propose to disclose the following,
updated as appropriate for activity occurring between the date of this letter and our filing
of our Quarterly Report on Form 10-Q:</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Management&#146;s Report on Internal Control Over Financial Reporting</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with the preparation of this Form&nbsp;10-K, our management, under the supervision and
with the participation of our CEO and Interim CFO, conducted an evaluation of the effectiveness of
our internal control over financial reporting as of December&nbsp;31, 2007 based on the framework
established in <I>Internal Control&nbsp;&#150; Integrated Framework </I>issued by the Committee of Sponsoring
Organizations of the Treadway Commission (&#147;COSO&#148;). As a result of that evaluation, management
identified the following control deficiencies as of December&nbsp;31, 2007 that constituted material
weaknesses:
</DIV>


<DIV style="margin-top: 6pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Insufficient Complement of Personnel with Appropriate Accounting Knowledge and Training.&nbsp;&nbsp;</I>We
did not maintain a sufficient complement of personnel with an appropriate level of accounting
knowledge, experience and training in the application of U.S.&nbsp;GAAP and for effective
preparation and review of all account reconciliations and analysis over the completeness and
accuracy of account balances.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Equity-Based Compensation Accounting.</I>&nbsp;&nbsp;We did not maintain effective controls over the
accounting for and disclosure of our equity-based compensation. Specifically, effective
controls, including monitoring controls, were not designed to ensure the completeness,
existence, valuation and presentation of stock-based compensation transactions related to the
granting, pricing and accounting for certain equity-based compensation awards and the related
financial reporting for these awards in accordance with U.S GAAP.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Lease Accounting.</I>&nbsp;&nbsp;We did not maintain effective controls over the completeness and accuracy of
accounting for leases in accordance with U.S.&nbsp;GAAP. Specifically, effective controls, including
period-end financial reporting controls, were not designed to ensure the identification and
application of the appropriate accounting principles for the real estate lease arrangements for
our delivery centers with respect to certain relevant contractual provisions, including lease
inducements, construction allowances, rent holidays, escalation clauses, lease commencement
dates and asset retirement obligations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Remediation Plan</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Insufficient complement of personnel with appropriate accounting knowledge and training.</I>&nbsp;&nbsp;We are
remediating this control deficiency by the following actions:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In March&nbsp;2008, we hired a new Vice President and Assistant General Counsel with
experience at major law firms, a public company, the Securities and Exchange Commission
(SEC)&nbsp;and a public accounting firm, who provides advice with regard to the disclosures in
our periodic reports and our equity-based compensation practices;</TD>
</TR>

</TABLE>
</DIV>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 5

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In May&nbsp;2008, we hired a new Vice President and Controller who is a licensed CPA with
extensive experience in public accounting and public company accounting operations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In July&nbsp;2008, we hired an assistant controller who reports directly to the Vice
President and Controller and is responsible for external/SEC reporting, technical
accounting issues (in accordance with U.S. GAAP) and Sarbanes-Oxley compliance;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In July&nbsp;2008, we hired a Manager over equity-based compensation and lease accounting;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In August&nbsp;2008, we hired an assistant corporate controller who is responsible for the
general ledger operations and monthly closing processes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We are also actively seeking to hire additional accounting personnel with knowledge of
and technical expertise in U.S. GAAP; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We are implementing personnel resource plans and training designed to ensure that we
have sufficient personnel with knowledge, experience, and training in the application of
U.S. GAAP.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Equity-based compensation accounting</I>. We have completed certain remedial actions and continue to
implement additional control procedures in our equity-based compensation practices which we believe
will remediate past deficiencies in our historical equity-based compensation practices. To date we
have implemented the following:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Annual equity awards are granted at a set time each year and are allocated to recipients
prior to approval by the Compensation Committee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All grants that require Compensation Committee approval, including new hire, promotion
and special circumstance grants, are presented to the Compensation Committee at a monthly
scheduled meeting. The Compensation Committee is provided with information on the
accounting treatment and any non-standard terms of each proposed grant;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A senior member of the Human Capital Department, supported by designated members of the
Legal, Tax and Accounting Departments, is responsible for ensuring that the accounting
treatment, recipient notification requirements, and required disclosures have been
determined for each equity award before the award is authorized by the Compensation
Committee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other than as approved under new grant procedures, changes to grants after their
approval date are prohibited, other than to withdraw a grant to an individual in its
entirety because of a change in circumstances between approval and issuance of the grant
(or to correct clear clerical errors);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Hired an Accounting Manager to oversee equity-based compensation with specific
experience in equity-based compensation accounting.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are continuing to implement the following:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provide training for pertinent personnel in the terms of the Company&#146;s equity
compensation plans and improved policies and procedures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Implement a software system that will track all equity-based awards and automate the
equity-based compensation calculations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Expand internal audit procedures relating to grant approval and documentation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Review the new equity compensation grant practices after one year of operation.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Lease accounting</I>. We are remediating this control deficiency by redesigning our accounting and
control processes to provide complete and accurate recording of our real estate lease transactions.
Specifically:
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 6

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We have instituted additional levels of managerial review over all lease agreements and
the associated accounting;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We have established processes to evaluate all new or modified leases, including the
preparation of a summary of key terms for each lease in order to ensure complete and
accurate recording of real estate lease arrangements in accordance with U.S. GAAP; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We have hired an Accounting Manager to oversee leases with specific experience in lease
accounting.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We believe the remediation measures described above will remediate the control deficiencies we have
identified and strengthen our internal control over financial reporting. We are committed to
continuing to improve our internal control processes and will continue to review our financial
reporting controls and procedures. As we continue to evaluate and improve our internal control
over financial reporting, we may decide to take additional measures to address control deficiencies
or determine to modify certain of the remediation measures described above.
</DIV>

<!-- link2 "Item&nbsp;11. Executive Compensation, page 73" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Item&nbsp;11. Executive Compensation, page 73 </I></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>Compensation Discussion and Analysis, page 73</I></U>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note your disclosure on page 76 that in 2007 you suspended your prior practice of granting
stock options to named executive officers as a means of providing long-term equity awards.
Even so, in future filings, please clarify whether the compensation committee has formalized
any procedures regarding grants of stock options.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In future filings, we will disclose the current status of the Compensation Committee&#146;s
practices and procedures regarding the grant of restricted stock units and stock options,
which are as described under the heading &#147;Remediation Plan&#148; in our response to question 6
above. In this regard, we will also clarify that the reference to &#147;equity awards&#148; under the
caption &#147;Equity-Based Accounting Practices&#148; in Item&nbsp;9A is intended to refer to both restricted
stock units and stock options.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Executive Compensation Program Design and Implementation, page 76</I></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>The Role of Cash Compensation, page 78</I></U>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>In the discussion of your performance-based cash incentives, you indicate that these
incentives are awarded based on the compensation committee&#146;s subjective consideration of each
executive&#146;s impact on your overall performance by examining eight &#147;success factors.&#148; Also, in
your Discretionary Cash Bonuses subsection on page 79, you state that Gregory&nbsp;G. Hopkins and
John&nbsp;R. Troka, Jr. received discretionary cash bonuses in 2007 of $375,000 and $160,000,
respectively, &#147;in recognition of their exceptional individual achievements and contributions
to &#091;your&#093; overall financial performance.&#148; Specifically, you state that you issued these
bonuses because of Mr.&nbsp;Hopkins&#146;s primary responsibility for your $159&nbsp;million revenue growth
in 2007 and Mr.&nbsp;Troka&#146;s expanded role and responsibilities in serving as your interim chief
financial officer in 2007.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>It seems that these performance-based cash incentives and discretionary cash bonuses are based
on a subjective evaluation of each executive&#146;s contributions, but it is unclear whether they are
triggered by obtaining certain objective financial results or whether it is a completely
subjective determination. If certain financial results are quantified, in future filings,
please specify those results necessary to trigger any performance-based cash incentives and
discretionary cash bonuses. See Item&nbsp;402 (b)(2)(v) of Regulation&nbsp;S-K. If they are not
quantified, please discuss in greater detail the manner in which the compensation committee
evaluates the executives&#146; contributions before awarding performance-based cash incentives and
discretionary cash bonuses.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company uses objective financial criteria in determining the contributions to fund the
incentive benefit pool, while the Compensation Committee&#146;s determination of whether to pay
performance-based cash incentives and discretionary cash bonuses to individual executives is
based on completely subjective criteria. In future filings, we will disclose the objective
financial criteria (revenue and operating margin) that we use to fund the
</TD>
</TR>
</TABLE>
</DIV>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 7

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>incentive benefit pool unless the Company determines that disclosing such information would
materially harm the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Specific forward-looking targets or goals with respect to quantified objective financial
criteria, if any, relied upon to fund the incentive benefit pool for the then current year will
not be reported. Any material changes to the Company&#146;s incentive compensation programs for the
then current year that would affect a fair understanding of compensation for the last fiscal
year will be discussed in future filings as required by the rules. However, disclosure of the
Company&#146;s internal projected revenue and operating income targets and any other projected
financial objectives that are the basis for funding the incentive benefit pool with respect to
awards not yet earned would not provide shareholders with additional material insight into the
Company&#146;s compensation arrangements or the compensation for the last fiscal year beyond what the
Company already discloses in its proxy statement, but could materially harm the Company by
assisting its competitors in assessing the Company&#146;s costs, pricing, strategies, weaknesses,
cash flow, product development and product performance, to the Company&#146;s competitive
disadvantage. In addition, disclosure of these forward-looking targets and goals could impair
the Company&#146;s ability to negotiate and enter into arrangements or to acquire technologies or
products on competitive terms necessary to execute the Company&#146;s growth strategies.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;Quantified objective financial criteria, if any, relied upon to fund the incentive benefit pool
for the prior fiscal year will be disclosed unless the Company determines that disclosing such
information would materially harm the Company.&#093;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In this regard, the Company proposes to revise the disclosure under the caption &#147;Funding of
Incentive Benefit Pool&#148; as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><I>&nbsp;</I></B></TD>
    <TD width="1%"><B><I>&nbsp;</I></B></TD>
    <TD><B><I>Funding of Incentive Benefit Pool</I></B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Funding for performance-based cash incentives under the Management Incentive Plan
(&#147;MIP&#148;), discretionary cash bonuses and other employee incentive programs comes from
our incentive benefit pool. We make contributions to the incentive benefit pool
periodically throughout the year based on our achievement of revenue and operating
income objectives in our internal business plan (excluding extraordinary, unusual or
infrequently occurring events or changes in accounting principles). We then pay
performance-based cash incentives under the MIP, discretionary cash bonuses and
other employee incentives out of the incentive benefit pool. The Compensation
Committee, however, has discretion to distribute less than the total amount of funds
available in the incentive benefit pool.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Performance-based cash incentives (under the MIP) and discretionary cash bonuses
paid to individual executives, if any, are based <I>completely </I>on subjective criteria,
not on our achievement of objective financial results. Specifically,
performance-based cash incentives are subjectively based on the eight &#147;success&#148;
factors specified under the caption &#147;The Role of Cash Compensation &#150;
Performance-Based Cash Incentives.&#148; While the Compensation Committee can and does
consider objective financial results in its subjective evaluation of an executive
officer&#146;s performance, there is no formulaic tie between the financial results and
the amount of the performance-based cash incentive (under the MIP) or discretionary
cash bonus.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please note that the Company has not determined whether performance-based cash incentives will
be paid to any executive officers in 2008. However, we will provide the following disclosure
(in pertinent part) under the caption &#147;The Role of Cash Compensation &#150; Performance Based Cash
Incentives&#148; regardless of whether we pay performance-based cash incentives to named executive
officers:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Performance-Based Cash Incentives</I>.......Specifically, the Compensation Committee pays
performance-based cash incentives under the MIP and/or discretionary cash bonuses using
a completely subjective determination, considering each named executive officer&#146;s impact
on our overall performance by examining the following eight &#147;success factors&#148;: (i)
contribution to our overall operating effectiveness, strategic success and
profitability; (ii)&nbsp;role in developing and maintaining key</TD>
</TR>

</TABLE>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 8

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>client relationships; (iii)&nbsp;level of responsibility, scope, and complexity of such named
executive officer&#146;s position relative to other named executive officers; (iv)&nbsp;leadership
growth and management development over the past year; (v)&nbsp;completion of strategic
projects; (vi)&nbsp;innovations to continuously improve performance and improve open
communications; (vii)&nbsp;ability to provide hands-on business problem solving and wise
business decisions; and (viii)&nbsp;demonstration of business ownership. The Compensation
Committee selected these success factors because they are important indicators of
increased stockholder value. The success factors are not qualified or weighted for
importance.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We will then discuss the specific accomplishments of each named executive officer who receives a
performance-based cash incentive or discretionary cash bonus payment (if any), vis-&#224;-vis the
eight success factors listed above. For an example, please see the proposed disclosure included
below regarding 2007 &#147;discretionary cash bonuses&#148; paid to Messrs.&nbsp;Hopkins and Troka.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please note that the Company has not determined whether it will pay discretionary cash bonuses
to any executive officers in 2008. However, we will provide the following disclosure (in
pertinent part) under the caption &#147;The Role of Cash Compensation &#150; Discretionary Cash Bonuses&#148;
regardless of whether we pay discretionary bonuses to named executive officers:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>Discretionary Cash Bonuses</I>........At the end of each year, the Compensation Committee also
has the authority to pay discretionary cash bonuses (in addition to performance-based
cash incentives under the MIP) to any executive, including any of the named executive
officers. Although the Compensation Committee has not relied heavily on discretionary
cash bonuses, the Compensation Committee believes that discretionary cash bonuses are an
important component of executive compensation because they provide the Committee with
the ability to recognize exceptional individual achievement and contributions to
TeleTech&#146;s overall financial performance, especially where the Compensation Committee
believes that performance-based cash incentives under the MIP have not adequately
compensated the executive officer for his or her performance. In this regard, the
Compensation Committee relies on the eight &#147;success factors&#148; used to determine
performance-based cash incentives under the MIP. Discretionary cash bonuses are,
however, a less significant factor than equity compensation and performance-based cash
incentives under the MIP. Its secondary significance is evidenced by the fact that the
CEO and the Vice Chairman have not historically received discretionary cash bonuses.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If we pay discretionary cash bonus to any named executive officer in 2008, we will provide the
following additional disclosure (in pertinent part) under the subcaption &#147;Discretionary Cash
Bonuses,&#148; using the 2007 discretionary cash bonus payments cited in your comment 8 above as an
example:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For example, in 2007, the Compensation Committee approved discretionary cash bonuses of
$375,000 for Mr.&nbsp;Hopkins and $160,000 for Mr.&nbsp;Troka in recognition of their exceptional
individual achievements and contributions to TeleTech&#146;s overall financial performance.
The criteria for these awards were entirely subjective, and are not specifically tied to
our achievement of objective financial results. The Compensation Committee opted to pay
Mr.&nbsp;Hopkins a discretionary cash bonus of $375,000 primarily due to his (i)&nbsp;contribution
to our overall operating effectiveness, strategic success and profitability, (ii)&nbsp;role
in developing key client relationships and (iii)&nbsp;leadership, as evidenced by Mr.
Hopkins&#146; instrumental role in developing TeleTech&#146;s revenue, which increased by
approximately $159&nbsp;million in 2007 (although there was no objective or formulaic tie
between the revenue growth and Mr.&nbsp;Hopkins&#146; discretionary cash bonus).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Compensation Committee opted to pay Mr.&nbsp;Troka a discretionary cash bonus of $160,000
primarily due to his: (i)&nbsp;contribution to our overall operating effectiveness, strategic
success and profitability; (ii)&nbsp;level of responsibility, scope, and complexity of his
position; (iii)&nbsp;leadership; (iv)&nbsp;completion of strategic projects; and (v)&nbsp;ability to
provide hands-on business problem solving and wise business decisions. Mr.&nbsp;Troka&#146;s
award was attributable to his expanded role and responsibilities, due in large part to
the fact that Mr.&nbsp;Troka served as Interim Chief Financial Officer for all of 2007, a
year in which there were unprecedented responsibilities placed upon the Finance
Department.</TD>
</TR>

</TABLE>
</DIV>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 9

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please note that Mr.&nbsp;Hopkins was not included in the MIP and therefore was not eligible to
receive performance-based cash incentives in 2007; he could only receive discretionary cash
bonuses in 2007. In 2008, however, Mr.&nbsp;Hopkins is included in the MIP and is eligible to
receive incentive-based cash incentives.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>In this regard, we note that there is a range of each executive&#146;s performance-based cash
incentives that varies based on the officer&#146;s title and responsibilities. For example,
Brian&nbsp;J. Delaney&#146;s award range was from zero to 150% of his base salary and John&nbsp;R. Troka,
Jr.&#146;s range was zero to 45% of his base salary. Please explain the reason or reasons that you
chose these particular varying percentages for these named executive officers.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The reason that the range of performance-based cash incentives for Mr.&nbsp;Troka is lower that the
other named executive officers is that Mr.&nbsp;Troka, as the Company&#146;s <I>Interim </I>Chief Financial
Officer, is the only named executive officer who is a senior vice president. The other named
executive officers are executive vice presidents or above. Furthermore, Mr.&nbsp;Troka started
fiscal year 2007 as a vice president, which is one level below senior vice president. For
2008, the maximum award range for vice presidents, senior vice presidents and executive vice
presidents is as follows:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Performance-Based Cash Incentives &#150;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Title</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Maximum Range of Base Salary</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Vice President
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">Zero to 45%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Senior Vice President
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">Zero to 112.5%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Executive Vice President and Above
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">Zero to 150%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We will clarify the disclosure in future filings (as described in the table above) to
specifically state the maximum range of performance-based cash awards, based on the positions
held by all named executive officers during 2008 (i.e., senior and executive vice presidents).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>The Role of Consultants, page 79</I></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>In future filings, please clarity whether your chief executive officer met with
representatives of Compensia, Inc. or Latham &#038; Watkins, LLP regarding his compensation or the
compensation of other named executive officers and identify the members of management with
whom these consultants work, if any. Also, please describe in greater detail the nature and
scope of the consultants&#146; assignments and the material elements of their instructions or
directions regarding the performance of their duties. See Item&nbsp;</I><I>407(e)(3)(ii)</I><I> and (iii)&nbsp;of
Regulation&nbsp;S-K.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In future filings, we will clarify that: (i)&nbsp;our chief executive officer has not met with
representatives of Compensia, Inc. or Latham &#038; Watkins, LLP regarding his compensation or the
compensation of other named executive officers; and that (ii)&nbsp;Michael M. Jossi, Executive Vice
President, Global Human Capital, is the member of management that works with these
consultants. We will disclose in greater detail the nature and scope of the consultants&#146;
assignments. Among other things, Compensia provides the Compensation Committee with: (i)&nbsp;a
periodic review of our compensation practices and philosophy; (ii)&nbsp;a competitive assessment of
our executive compensation levels and pay-for-performance linkage; (iii)&nbsp;an analysis of peer
group companies that compete with us in the labor and capital markets and that follow similar
compensation models, along with benchmark compensation and benefits data for the peer group;
and (iv)&nbsp;a review of our executive cash and equity incentive programs. Latham &#038; Watkins
reviews public disclosures relating to executive compensation and advises the Compensation
Committee as to corporate governance issues and the legal structure of equity and cash
compensation plans.</TD>
</TR>

</TABLE>
</DIV>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 10

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>The Role of Employment Agreements, page 80</I></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>You state that you have employment agreements with Kenneth D. Tuchman, James E. Barlett, and
Gregory&nbsp;G. Hopkins. However, it does not appear that you have filed your employment agreement
with Mr.&nbsp;Hopkins. If true, in future filings, please file the agreement. If not, please tell
us where you have filed the agreement.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We will file Mr.&nbsp;Hopkins&#146; employment agreement as an exhibit to our Quarterly Report on Form
10-Q for the quarter ended September&nbsp;30, 2008. Mr.&nbsp;Hopkins was not a Section&nbsp;16 officer when
he entered into his employment agreement with the Company.</TD>
</TR>

</TABLE>
</DIV>
<!-- link2 "Item&nbsp;13. Certain Relationships and Transactions, page 91" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Item&nbsp;13. Certain Relationships and Transactions, page 91</I></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note your disclosure that your audit committee has not adopted any specific procedures for
conducting reviews of related party transactions, but that it instead considers each
transaction in light of the specific facts and circumstances presented. In future filings,
please revise your disclosure to describe the policies your audit committee has for reviewing,
approving, or ratifying related party transactions based upon the specific facts and
circumstances presented as required by </I><I>Item 404(b)</I><I> of Regulation&nbsp;S-K. The policy required by
Item&nbsp;</I><I>404(b)</I><I> should be specific to transactions subject to </I><I>Item 404(a)</I><I> of Regulation&nbsp;S-K.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company has adopted a Related Party Transaction Policy which requires all officers and
directors to complete a questionnaire during the first quarter of each fiscal year. The
questionnaire asks officers and directors to describe the terms of all related party
transactions, as defined in Item 404(a) of Regulation&nbsp;S-K, that occurred during the prior year
and that are anticipated to occur during the current year. The Audit Committee, pursuant to
its charter, then reviews and approves all related party transactions. To accomplish this
objective, the Audit Committee compares the terms of each related party transaction with the
terms offered by at least three unaffiliated vendors in order to determine whether the
transactions are at least as fair to the Company as the terms imposed by unaffiliated vendors.
The Company will revise the disclosure in future filings to clarify the procedures cited
above.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Please note that the Audit Committee will be reviewing its Charter and other policies (i.e.,
the Related Party Transaction Policy) during the fourth quarter of 2008. If there are any
changes to the Charter or related policies which involve related party transactions, we will
revise the disclosures in future filings accordingly.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note your disclosure that the audit committee concluded that the terms of the related
party transactions with Avion, LLC and AirMax, LLC &#147;were fair, equitable, and at least as
favorable to &#091;you&#093; as the rates charged by third party vendors in arm&#146;s length transactions.&#148;
Please tell us, and in future filings please disclose, whether the transactions and agreements
with these related parties were comparable to terms you could have obtained from unaffiliated
third parties.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The terms of the transactions and agreements with Avion, LLC and AirMax, LLC were comparable
to the terms we could have obtained from unaffiliated third parties as supported by terms
obtained from three unaffiliated vendors. We will revise the disclosure in future filings
accordingly.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company acknowledges that:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company is responsible for the adequacy and accuracy of the disclosure in each of
its filings with the Securities and Exchange Commission, including the Form 10-K;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Staff comments or changes to disclosure in response to Staff comments do not foreclose
the Securities and Exchange Commission from taking any action with respect to any filing;
and</TD>
</TR>

</TABLE>
</DIV>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 11

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company may not assert Staff comments as a defense in any proceeding initiated by
the Securities and Exchange Commission or any person under the federal securities laws of
the United States.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you have any questions regarding the responses set forth above, please do not hesitate to
contact the undersigned at 303.397.8353, Adriana Langston, Vice President and Controller, at
303.397.8681, or J. David Hershberger, Vice President and Assistant General Counsel, at
303.397.8944.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Sincerely,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">John R. Troka, Jr.<BR>
Senior Vice President and<BR>
Interim Chief Financial Officer

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="95%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">cc:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Scott Stringer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Donna DiSilvio</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Kenneth D. Tuchman</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">J. David Hershberger</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Adriana Langston</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PricewaterhouseCoopers LLP</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Appendix&nbsp;A<BR>
Response to Comments 1 and 2 &#040;underlined to show changes&#041;</B>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ITEM&nbsp;7.&nbsp;&nbsp;MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Executive Summary</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TeleTech is one of the largest and most geographically diverse global providers of business process
outsourcing solutions. We have a 26-year history of designing, implementing and managing critical
business processes for Global 1000&nbsp;companies to help them improve their customers&#146; experience,
expand their strategic capabilities and increase their operating efficiencies. By delivering a
high-quality customer experience through the effective integration of customer-facing, front-office
processes with internal back-office processes, we enable our clients to better serve, grow and
retain their customer base. We have developed deep vertical industry expertise and support
approximately 250 business process outsourcing programs serving 100 global clients in the
automotive, broadband, cable, financial services, government, healthcare, logistics, media and
entertainment, retail, technology, travel, wireline and wireless industries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As globalization of the world&#146;s economy continues to accelerate, businesses are increasingly
competing on a worldwide basis due to rapid advances in technology and telecommunications that
permit cost-effective real-time global communications and ready access to a highly-skilled global
labor force. As a result of these developments, companies have increasingly outsourced business
processes to third- party providers in an effort to enhance or maintain their competitive position
and increase shareholder value through improved productivity and profitability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We believe that <U>our revenue will continue to grow over the long-term as</U> global demand for
our services is fueled by the following trends:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Integration of front and back office business processes to provide an enhanced customer
experience.</I>&nbsp;&nbsp;Companies have realized that integrated business processes allow customer
needs to be met more quickly and efficiently. This integration results in higher customer
satisfaction and brand loyalty and thereby improves their competitive position. <U>A
majority of our historic revenues have been derived from providing front-office solutions
to our clients. Given our global delivery centers are also fully capable of providing
back-office solutions, we are uniquely positioned to grow our revenue by winning more
back-office opportunities and providing the services during non-peak hours with minimal
incremental investment. Furthermore, by spreading our fixed costs across a larger revenue
base and increasing our asset utilization, we expect our profitability to improve over
time.</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Increasing percentage of company operations being outsourced to most capable third-party
providers</I>.&nbsp;&nbsp;Having experienced success with outsourcing a portion of their business
processes, companies are increasingly outsourcing a larger percentage of this work. <U>We
believe</U> companies <U>will continue to </U>consolidate their business processes with
third-party providers, <U>such as TeleTech, who are financially stable and able to invest
in their business while also demonstrating an</U> extensive <U>global</U> operating
history and <U>an</U> ability to <U>cost effectively</U> scale to meet their evolving
needs.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Increasing adoption of outsourcing across broader groups of industries.</I>&nbsp;&nbsp;Early adopters
of the business process outsourcing trend, such as the media and communications industries,
are being joined by companies in other industries, including healthcare, retailing and
financial services. These companies are beginning to adopt outsourcing to improve their
business processes and competitiveness. <U>For example, we have seen an increase in our
revenue from the healthcare, retail and financial services industries. We believe the
number of other industries that will adopt or increase their level of outsourcing will
continue to grow further enabling us to increase and diversify our revenue and client
base</U>.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Focus on speed-to-market by companies launching new products or entering new geographic
locations.&nbsp;&nbsp;</I>As companies broaden their product offerings and seek to enter new emerging
markets, they are looking for outsourcing providers that can provide speed-to-market while
reducing their capital and operating risk. To achieve these benefits, companies are seeking
BPO providers with an extensive operating history, an</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 2

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>established global footprint and the financial strength to invest in innovation to deliver
more strategic capabilities and the ability to scale and meet customer demands quickly.
<U>Given our financial stability, geographic presence in 18 countries and our significant
investment in standardized technology and processes, clients increasingly select us because
we can quickly ramp large, complex business processes around the globe in a short period of
time while assuring a high-quality experience for their customers</U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Our Strategy</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our objective is to become the world&#146;s largest, most technologically advanced and innovative
provider of onshore, offshore and work-from-home BPO solutions. Companies within the Global 1000
are our primary client targets due to their size, focus on outsourcing and desire for the global,
scalable integrated process solutions that we offer. We have developed, and continue to invest in,
a broad set of capabilities designed to serve this growing client need. <U>These investments
include our TeleTech@Home offering which allows our employees to serve clients from their home.
This capability has enhanced the flexibility of our offering allowing clients to choose our
onshore, offshore or work from home employees to meet their outsourced business process needs. In
addition we have begun to offer &#145;hosted services&#146; where clients can license any aspect of our
global network and proprietary applications. While the revenue from these offerings is small
relative to our consolidated revenue, we believe it will continue to grow as these services become
more widely adopted by our clients. </U>We aim to further improve our competitive position by
investing in a growing suite of new and innovative business process services across our targeted
industries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our business strategy <U>to increase revenue, profitability and our industry position</U> includes
the following elements:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Deepen and broaden our relationships with existing clients.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Win business with new clients and focus on targeted industries where we expect
accelerating adoption of business process outsourcing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Continue to invest in innovative proprietary technology and new business offerings.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Continue to improve our operating margins <U>through increased offshore delivery,
and</U></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Selectively pursue acquisitions that extend our capabilities<U>, geographic reach</U>
and/or industry expertise.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Our 2007 Financial Results</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2007, our revenue grew 13.1% over 2006 to $1,370&nbsp;million. Our income from operations grew 10.9%
to $81.8&nbsp;million in 2007 from $73.8&nbsp;million in 2006. Income from operations in 2007 included
$22.9&nbsp;million of asset impairment and restructuring charges primarily related to the disposal of
our Database Marketing and Consulting business and $11.5&nbsp;million of selling, general and
administrative charges associated with the restatement of our historic financial statements.
Excluding both of these charges which totaled $34.4&nbsp;million, our income from operations in 2007
increased 57.5% to $116.2&nbsp;million or 8.5% of revenue from $73.8&nbsp;million or 6.1% of revenue in 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our improved profitability stems primarily from continued expansion into offshore markets,
increased utilization of our delivery centers across a 24-hour period, leveraging our global
purchasing power and diversifying revenue into higher margin opportunities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We have experienced strong growth in our offshore delivery centers, which primarily serve clients
located in other countries. Our offshore delivery capacity now spans eight countries and 24,235
workstations and currently represents 63% of our global delivery capabilities. Revenue in these
offshore locations grew 37% in 2007 to $550&nbsp;million and represented 40% of our total revenue. To
meet continued client demand in 2007, we added 7,700&nbsp;gross workstations primarily in offshore
locations including the Philippines and Latin America. <U>While historically it was primarily
U.S-based clients that were willing to utilize our offshore delivery capabilities we have
increasingly seen clients in Europe and Asia Pacific willing to utilize our offshore delivery
capabilities and expect </U>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>this trend to continue with clients in other countries. In light of this trend, we</U> plan to
<U>continue to</U> selectively expand into new offshore markets. <U>For example, we</U> believe
we are one of the first BPO providers to enter the African continent. As we grow our offshore
delivery capabilities and our exposure to foreign currency fluctuations increase, we continue to
actively manage this risk via a multi-currency hedging program designed to minimize operating
margin volatility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the third quarter of 2007, Newgen Results Corporation and related companies (hereinafter
collectively referred to as &#147;Newgen&#148;) and TeleTech entered into an asset purchase agreement to sell
substantially all of the assets and certain liabilities associated with the Database Marketing and
Consulting business which represented 1% of our consolidated revenue. This transaction closed on
September&nbsp;28, 2007. During 2007, our income from operations was reduced by $20.4&nbsp;million related to
asset impairment and restructuring charges for this business. During 2007, our income from
operations before income taxes and minority interest was reduced by $24.3&nbsp;million which includes
the $20.4&nbsp;million of asset impairment and restructuring charges discussed above along with a
$3.9&nbsp;million net charge related to the above disposal comprised of a loss on the sale of assets of
$6.1&nbsp;million partially offset by software license income of $2.2&nbsp;million recorded in Other, net.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the fourth quarter of 2007, we completed the sale of our Customer Solutions Mauritius subsidiary
that owned a 60% interest in our TeleTech Services India Ltd. joint venture and represented less
than 1% of our consolidated revenue. We recorded a $7.0&nbsp;million gain on the sale which was recorded
in Other, net.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our strong financial position, cash flow from operations and low debt levels allowed us to finance
a significant portion of our capital needs and stock repurchases through internally generated cash
flows. At December&nbsp;31, 2007, we had $91.2&nbsp;million of cash and cash equivalents and a total debt to
equity ratio of 17.4%. During 2007, we repurchased $47.0&nbsp;million of our common stock throughout the
year and since inception of the share repurchase program in 2001 have invested $162.3&nbsp;million to
acquire approximately 20% of our outstanding stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Year Ended December&nbsp;31, 2007 Compared to December&nbsp;31, 2006</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Revenue</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Our strategy of continuing to increase our offshore revenue delivery resulted in an increase in
our percentage of off-shore revenue. Our offshore delivery capacity now represents 63% of our
global delivery capabilities. Revenue in these offshore locations grew 37% in 2007 to $550&nbsp;million
from $400&nbsp;million, and represented 40% of our total revenue. An important component of our growth
strategy is continued international expansion. Factors that may impact our ability to maintain our
offshore operating margins are potential increases in competition for the available workforce, the
trend of higher occupancy costs and foreign currency fluctuations. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>We have been able to increase our penetration into a broader range of industries and have seen
our revenue in the healthcare, retail and financial services industries grow from $251&nbsp;million
during 2006 to $284&nbsp;million in 2007. We continue to pursue opportunities within these industries
as they continue to adopt an outsourcing strategy. </U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Revenue for the North American BPO for 2007 compared to 2006 was $955.8&nbsp;million and $814.4&nbsp;million,
respectively. The increase in revenue for the North American BPO was due the inclusion of a
full-year of revenue from DAC <U>equating to $30.7&nbsp;million</U>, the net expansion of client
programs <U>of $150.2&nbsp;million, offset by program terminations of $39.5&nbsp;million</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Revenue for the International BPO for 2007 compared to 2006 was $396.1&nbsp;million and $356.1&nbsp;million,
respectively. The increase in revenue for the International BPO was <U>due to </U>the net
expansion of client programs <U>of $41.1&nbsp;million, positive changes in foreign exchange rates
resulting in an increase in revenue of $29.7&nbsp;million,</U> <U>offset by program terminations of
$30.9&nbsp;million.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Revenue for Database Marketing and Consulting for 2007 compared to 2006 was $17.7&nbsp;million and
$40.2&nbsp;million, respectively. The decrease is due primarily to a net decline in clients and the
disposition of the business in September&nbsp;2007.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 4

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cost of Services
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cost of services for the North American BPO for 2007 compared to 2006 were $689.8&nbsp;million and
$588.0&nbsp;million, respectively. Cost of services as a percentage of revenue in the North American BPO
remained consistent as compared to the prior year. In absolute dollars the increase is due to
<U>the inclusion of a full year of DAC equating to $17.3&nbsp;million, an increase of $77.7&nbsp;million in
employee related expenses due to implementation of new and expanded client programs and $6.8
million in net increases in the other expenses</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cost of services for the International BPO for 2007 compared to 2006 were $299.9&nbsp;million and
$272.0&nbsp;million, respectively. Cost of services as a percentage of revenue in the International BPO
decreased due to rapid expansion of our offshore capacity in lower cost locations. In absolute
dollars, <U>the increase includes $18.9&nbsp;million in employee related expenses due to implementation
of new and expanded client programs with approximately $7.0&nbsp;million of that increase due to changes
in foreign exchange rates, and $9.0&nbsp;million in net increases in other expenses.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cost of services for Database Marketing and Consulting for 2007 compared to 2006 were $11.7&nbsp;million
and $22.8&nbsp;million, respectively. The decrease from the prior year was primarily due to cost
reductions and the disposition of the business in September&nbsp;2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Selling, General and Administrative</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Selling, general and administrative expenses for the North American BPO for 2007 compared to 2006
were $126.5&nbsp;million and $112.7&nbsp;million, respectively. The expenses increased in absolute dollars
<U>as a result of the inclusion of a full year of DAC equating to $8.4&nbsp;million</U>, third-party
legal, accounting, payroll tax and consulting expenses associated with our review of equity-based
compensation practices <U>which amounted to $8.2&nbsp;million, offset by a $2.8&nbsp;million net decrease in
other expenses. </U> These expenses decreased as a percentage of revenue due to greater economies
of scale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Selling, general and administrative expenses for the International BPO for 2007 compared to 2006
were $66.7&nbsp;million and $62.4&nbsp;million, respectively. These expenses for the International BPO
increased in absolute dollars as a result of third-party legal, accounting, payroll tax and
consulting expenses associated with our review of equity-based compensation practices which
amounted to $3.2&nbsp;million and <U>a $1.1&nbsp;million net increase in other expenses</U>. These expenses
decreased as a percentage of revenue due to greater economies of scale.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Selling, general and administrative expenses for Database Marketing and Consulting for 2007
compared to 2006 were $14.3&nbsp;million and $24.9&nbsp;million, respectively. The decrease was primarily due
to cost reductions, the lower allocation of corporate-level operating expenses and the disposition
of the business in September&nbsp;2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Depreciation and Amortization</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Depreciation and amortization expense on a consolidated basis for 2007 compared to 2006 was
$56.0&nbsp;million and $52.0&nbsp;million, respectively. Depreciation and amortization expense in the North
American BPO remained relatively consistent as a percentage of revenue with the prior year and
increased in the International BPO segment due to the significant expansion of capacity in certain
offshore markets. <U>The North American BPO included an increase due to the inclusion of a full
year of DAC equating to $1.1&nbsp;million, and increases in the Philippines of $4.7&nbsp;million due to new
capacity. The International BPO included an increase for Argentina of $2.0&nbsp;million due to new
capacity.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Depreciation and amortization expense in Database Marketing and Consulting <U>decreased $3.5
million</U> compared to the prior year due to assets, primarily software development costs,
reaching the end of their depreciable lives and the disposition of the business in September&nbsp;2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Restructuring Charges, Net
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2007, we recognized restructuring charges of $7.1&nbsp;million related to both a reduction in
force across all three segments and a $4.0&nbsp;million charge for certain facility exit costs in our
Database Marketing and Consulting business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Impairment Losses</I>
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS">Securities and Exchange Commission</FONT><BR>
October&nbsp;13, 2008<BR>
Page 5

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2007, we recognized impairment losses of $15.8&nbsp;million primarily related to the following
items: (i)&nbsp;$15.6&nbsp;million related to our Database Marketing and Consulting business comprised of
$13.4&nbsp;million related to the impairment of the business&#146; goodwill in June&nbsp;2007 and $2.2&nbsp;million
related to leasehold improvement impairments; and (ii)&nbsp;$0.2&nbsp;million related to the reduction of the
net book value of long-lived assets in the North American BPO to their estimated fair values.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Other Income (Expense)</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For 2007, interest income and expense were relatively unchanged from 2006. Gain on sale of assets
of $0.9&nbsp;million includes a $7.0&nbsp;million gain on the sale of our 60% interest in our Indian joint
venture partially offset by a $6.1&nbsp;million loss on sale of our Database Marketing and Consulting
business. Other (Expense), net, increased by $2.9&nbsp;million <U>primarily related to foreign currency
transaction losses of $4.1&nbsp;million partially offset by a</U> $2.2&nbsp;million benefit from a software
license.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Income Taxes</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The effective tax rate for 2007 was 26.0%. This compares to an effective tax rate of 23.8% in 2006.
The 2007 effective tax rate is positively influenced by earnings in international jurisdictions
currently enjoying an income tax holiday and the distribution of income between the U.S.&nbsp;and
international tax jurisdictions. The effective tax rate for 2007 is lower than expected due to the
second quarter impairment and third quarter restructuring and loss on the sale of subsidiary
recorded for our Database Marketing and Consulting business as discussed in Note&nbsp;13. These charges
were all recorded in the U.S.&nbsp;tax jurisdiction and reduced income before taxes recorded in the
U.S.&nbsp;and thereby increased the proportion of income before taxes earned in international tax
jurisdictions. Finally, we realized a $2.4&nbsp;million benefit related to a permanent difference in
calculating the gain from disposition of our India joint venture in the fourth quarter as discussed
in Note&nbsp;4 and a $1.4&nbsp;million benefit related to certain tax planning and corporate restructuring
activities and the reversal of $0.9&nbsp;million in deferred tax valuation allowance recorded against
tax assets in prior years. Without these items, our effective tax rate in 2007 would have been
32.2%. This compares to an effective tax rate of 23.8% in 2006. In 2006 the effective tax rate
includes the benefit from the reversal of a $4.0&nbsp;million deferred tax valuation allowance recorded
against tax assets recorded in prior years. In addition, we recorded new deferred tax assets of
$3.3&nbsp;million due to a corporate restructuring. Without these items, our effective tax rate in 2006
would have been 34.3%. Our effective tax rate could be adversely affected by several factors, many
of which are outside of our control. Further, income taxes are subject to changing tax laws,
regulations and interpretations in multiple jurisdictions, in which we operate, as well as the
requirements, pronouncements and rulings of certain tax, regulatory and accounting organizations.
In future years, our effective tax rate is expected to return to approximately 30% to 33%,
principally because we expect our distribution of pre-tax income between the U.S.&nbsp;and our
international tax jurisdictions to return to more typical levels seen in recent years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Liquidity and Capital Resources</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Cash Flows from Financing Activities</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the years 2007, 2006 and 2005, we reported net cash flows provided by (used in) financing
activities of $(30.1)&nbsp;million, $38.4&nbsp;million and $(37.0)&nbsp;million, respectively. The change from
2006 to 2007 is due <U>primarily to </U>a decrease in net borrowings on the line of credit of
$37.9&nbsp;million due to higher cash balances and <U>increased purchases of our outstanding stock of
$30.4&nbsp;million </U>The change from 2005 to 2006 resulted <U>primarily</U> from a decrease in the
purchase of our outstanding stock <U>of $51.3&nbsp;million</U> and increased exercises of stock options
<U>by employees of $12.0&nbsp;million</U>.
</DIV>



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