Globalization of the world\\\'s economy remains the most powerful economic trend of our lifetime. It is driven by expanding technology capabilities, the relaxation of local laws and regulations that previously impeded cross-border trade, more efficient global telecommunications and the recognition by business leaders that a highly skilled global workforce can be a competitive business advantage. These dynamics are creating an entirely new set of competitive challenges for companies around the world.

The current globalization trend has contributed to increased competition for companies around the world, particularly in the established economies of North America and Europe. These dynamics have forced companies to focus on ways to improve productivity and manage costs more aggressively in order to maintain or enhance their competitive positions and increase shareholder value. As part of their response to these pressures, in recent years, business leaders began offshoring business processes to captive businesses and outsourcing business processes to third parties, including by sending such processes offshore to workers in countries where wage levels were lower than in North America and Europe.

The use of information technology has also been an important catalyst for the growth of outsourcing. Before outsourcing business processes, companies more frequently outsourced IT operations. As companies realized benefits from outsourcing IT services, they became more willing to outsource other types of processes. At the same time, growth in the use of IT contributed to greater efficiencies in business processes and other productivity enhancements. As a result, knowledge of IT platforms and technology became increasingly important to effective business process management.

According to International Data Corporation, or IDC, aggregate worldwide spending on IT and business process outsourcing, or BPO, services is estimated to be $934 billion for 2006. The offshore IT and BPO services segment is the fastest growing segment of this market. The NASSCOM-McKinsey report estimates the total addressable market for offshore IT and BPO services to be approximately $300 billion, of which only about 10% has been penetrated. The NASSCOM-McKinsey report projects that spending on offshore IT and BPO services will grow from $30 billion in 2005 to $110 billion in 2010, representing a CAGR of 30%.

IT infrastructure.

The Company is one of the world\\\'s premier providers of finance and accounting, or F&A, services. This is currently one of the Company’s largest service offerings. The Company’s finance and accounting services include end to end transaction services such as accounts payable processing and receivables management; core accounting services, including preparation of U.S. GAAP and SEC-compliant financial statements; core operations services including cash management, preparation of tax returns as well as decision support services which include cash flow analysis.

The Company’s collections and customer services are provided primarily in the areas of consumer finance, commercial finance and mortgage services. The Company’s collections services include a full range of accounts receivable management services, such as early to late stage collections, skip-tracing, refunds, account reconciliation and other specialized services. The Company’s customer services include account servicing and customer care services such as handling customer queries, general servicing and dispute resolution.

The Company provides what it refers to as a \\\"virtual insurance company\\\" for its clients in the insurance industry. The Company covers many phases of insurance business processes including product development, sales and marketing, policy administration and claims management.

The Company’s supply chain and procurement services include sourcing services, sales, inventory and operations planning services, logistics services and after market services.

The Company’s IT infrastructure services consist of the remote management of IT functions of its clients. This may include management of a client\\\'s networks services including LAN, WAN, wireless and VPN, end-user support, network security, malware protection, identity management and encryption services.

Cost of revenue increased by $56.9 million or 18.7% in 2006.

Operational expenses increased by $19.8 million in 2006.

Gross profit increased by $64.2 million or 34.2% in 2006.

Selling, general and administrative expenses increased by $41.7 million or 35.5% in 2006.

Income from operations increased by $26.3 million to $43.2 million in 2006.

Net income increased by $22.7 million from $17.1 million in 2005 to $39.8 million in 2006.