XML 24 R9.htm IDEA: XBRL DOCUMENT v3.20.4
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2020
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.
The Company’s
time-and-material
and fixed price revenue streams are recognized over time as the customer receives and consumes the benefits of the Company’s performance as the work is performed.
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.
Each contract the Company enters into is assessed to determine the promised services to be performed and includes identification of the performance obligations required by the contract. In substantially all of our contracts, we have identified a single performance obligation for each contract either because the promised services are distinct or the promised services are highly interrelated and interdependent and therefore represent a combined single performance obligation.
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,
 
   
2020
   
2019
   
2018
 
   
(Amounts in thousands)
 
Data and Analytics Services Segment
               
Time-and-material
Contracts
  $18,541   $18,732   $18,919 
Fixed-price Contracts
   11,685    7,931    4,884 
   
 
 
   
 
 
   
 
 
 
Subtotal Data and Analytics Services
  
$
30,226
 
  
$
26,663
 
  
$
23,803
 
   
 
 
   
 
 
   
 
 
 
IT Staffing Services Segment
               
Time-and-material
Contracts
  $163,875   $166,911   $153,361 
Fixed-price Contracts
   —      —      —   
   
 
 
   
 
 
   
 
 
 
Subtotal IT Staffing Services
  
$
163,875
 
  
$
166,911
 
  
$
153,361
 
   
 
 
   
 
 
   
 
 
 
Total Revenues
  
$
194,101
 
  
$
193,574
 
  
$
177,164
 
   
 
 
   
 
 
   
 
 
 
 
The Company had one client that exceeded 10% of total revenues in 2020, 2019 and 2018 (CGI = 15.0%, 11.3% and 12.8%, respectively). Additionally, CGI accounted for 11.7% and 10.3% of the Company’s accounts receivable balance at December 31, 2020 and 2019, respectively.
The Company’s top ten clients represented approximately 47%, 45% and 47% of total revenues in 2020, 2019 and 2018, 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,
 
   
2020
   
2019
   
2018
 
   
(Amounts in thousands)
 
United States
  $189,890   $188,710   $172,610 
Canada
   3,603    2,918    3,125 
India and Other
   608    1,946    1,429 
   
 
 
   
 
 
   
 
 
 
Total
  
$
194,101
 
  
$
193,574
 
  
$
177,164