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Revenue from Contracts with Customers | 12 Months Ended
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Dec. 31, 2019
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customers |
2. | Revenue from Contracts with Customers
As of January 1, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers,” using the modified retrospective method. The core principle of this standard is that a company should recognize revenue to depict the transfer of promised services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those services. The implementation of this standard had no impact on the measurement of recognition of revenue of prior periods and we expect the impact of this new standard to be immaterial to us on an ongoing basis. Additional disclosures have been added in accordance with the ASU. The Company recognizes revenue on time-and-material contracts over time as services are performed and expenses are incurred. Time-and-material contracts typically bill at an agreed-upon hourly rate, plus out-of-pocket expense reimbursement. Out-of-pocket expense reimbursement amounts vary by assignment, but on average represent less than 2% of total revenues. Revenue is earned on a per transaction or labor hour basis, as that amount directly corresponds to the value of the Company’s performance. Revenue recognition is negatively impacted by holidays and consultant vacation and sick days. In certain situations related to client direct hire assignments, where the Company’s fee is contingent upon the hired resources continued employment with the client, revenue is not fully recognized until such employment conditions are satisfied. The Company recognizes revenue on fixed price contracts over time as services are rendered and uses a cost-based input method to measure progress. Determining a measure of progress requires management to make judgments that affect the timing of revenue recognized. Under the cost-based input method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. The Company has determined that the cost-based input method provides a faithful depiction of the transfer of goods or services to the customer. Estimated losses are recognized immediately in the period in which current estimates indicate a loss. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which may be refundable. We do not sell, lease or otherwise market computer software or hardware, and essentially 100% of our revenue is derived from the sale of data and analytics, IT staffing and digital transformation services. We expense sales commissions in the same period in which revenues are realized. These costs are recorded within selling, general and administrative expenses. Our data and analytics services segment provides specialized capabilities in delivering data management and analytics services to customers globally. This business offers project-based consulting services in the areas of Master Data Management, Enterprise Data Integration, Big Data, Analytics and Digital Transformation, which can be delivered using onsite and offshore resources. Our IT staffing business combines technical expertise with business process experience to deliver a broad range of services in digital and mainstream technologies. Our digital technology stack includes data management and analytics, cloud, mobility, social and automation. Our mainstream technologies include business intelligence / data warehousing; web services; enterprise resource planning & customer resource management; and e-Business solutions. We work with businesses and institutions with significant IT-spend and recurring staffing needs. We also support smaller organizations with their “project focused” temporary IT staffing requirements. The following table depicts the disaggregation of our revenues by contract type and operating segment:
|  | Years Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | (Amounts in thousands) |
Data and Analytics Services Segment |  |  |  |  |  |  |  |  |  |  |  |
Time-and-material Contracts |  | $ | 18,732 |  |  | $ | 18,919 |  |  | $ | 7,755 |
Fixed-price Contracts |  |  | 7,931 |  |  |  | 4,884 |  |  |  | 1,430 |
Subtotal Data and Analytics Services |  | $ | 26,663 |  |  | $ | 23,803 |  |  | $ | 9,185 |
IT Staffing Services Segment |  |  |  |  |  |  |  |  |  |  |  |
Time-and-material Contracts |  | $ | 166,911 |  |  | $ | 153,361 |  |  | $ | 138,594 |
Fixed-price Contracts |  |  | — |  |  |  | — |  |  |  | 103 |
Subtotal IT Staffing Services |  | $ | 166,911 |  |  | $ | 153,361 |  |  | $ | 138,697 |
Total Revenues |  | $ | 193,574 |  |  | $ | 177,164 |  |  | $ | 147,882 |
The Company had one client that exceeded 10% of total revenues in 2019 and 2018 (CGI = 11.3% and 12.8%, respectively). The Company had two clients that exceeded 10% of total revenues in 2017 (CGI=12.6% and Accenture PLC=10.7%). Additionally, CGI accounted for 10.3% and 17.9% of the Company’s accounts receivable balance at December 31, 2019 and 2018, respectively. The Company’s top ten clients represented approximately 45%, 47% and 47% of total revenues in 2019, 2018 and 2017, respectively. The following table presents our revenue from external customers disaggregated by geography, based on the work location of our customers:
|  | Years Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | (Amounts in thousands) |
United States |  | $ | 188,710 |  |  | $ | 172,610 |  |  | $ | 145,513 |
Canada |  |  | 2,918 |  |  |  | 3,125 |  |  |  | 1,729 |
India and Other |  |  | 1,946 |  |  |  | 1,429 |  |  |  | 640 |
Total |  | $ | 193,574 |  |  | $ | 177,164 |  |  | $ | 147,882 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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