Businesses are increasingly relying on IT service providers to help manage the growing complexity, cost, and risk of today's IT infrastructure. Client engagements have evolved from simple staff augmentation and generic technology services to customized IT solutions requiring skilled IT professionals with in-depth industry knowledge. Further, the maturity of outsourced and offshore service delivery has generated client demand for more sophisticated engagement models combining onsite and offshore IT management.

According to a January 2005 Gartner report, worldwide spending on IT services is expected to grow from $569.6 billion in 2003 to $754.8 billion in 2008. This represents a compound annual growth rate of 5.8%.

Macroeconomic trends of globalization and industrialization, and a rapidly evolving economic and business environment have driven the trend towards off-shoring of IT services. To acquire high quality IT services more cost effectively, businesses are increasingly using offshore IT providers. It has become common for requests for proposals to require significant detail about the IT services providers' offshore capabilities. As a result, over the last few years a large number of global technology and IT services companies have begun to incorporate offshore operations as part of their business models.

According to a December 2004 Gartner report, by 2008 Gartner forecasts that the globally sourced component (external labor billed to the customer) of IT services spending will be approximately $50.0 billion, representing about 7% of the $728 billion total. This represents a compound annual growth rate of approximately 29% from 2003 to 2008.

The Company’s manufacturing practice offers IT and business process outsourcing services that support the purchase, sales, production, engineering, finance, human resources and legal functions of a manufacturing company. Within the manufacturing industry, the sectors the Company services include consumer goods and durables, electronics, engineering, food and beverages, personal care products, paper and rubber products. To businesses in these sectors, the Company provides services in the following areas: supply chain management; demand chain management; manufacturing applications and core manufacturing systems (including package implementation); data warehousing; and business intelligence.

The Company’s financial services practice focuses on clients in the banking, financial services and securities industries. The Company provides consulting and software services for consumer and corporate banking, treasury and risk management, mutual funds and investment management and securities. The Company’s software services to these areas include: architecture design; application integration and development; information security assessments; legacy system maintenance; business intelligence; customer relationship management; mutual funds and capital markets solutions; stock exchange and brokerage house solutions; and business process outsourcing.

The Company’s telecommunications practice provides domain expertise in a wide spectrum of IT operations and business support systems used by telecommunications service providers across various segments including mobile, wireline, cable, broadband and media. The Company’s telecommunications experts provide solutions that combine a wide variety of services including: IT strategy; system consulting and design; application development; implementation and maintenance; quality assurance; new product development and launch; infrastructure management services; and business process outsourcing.

The Company’s ISV technology practice offers outsourcing services that focus on design and development of software products. The Company leverages the latest tools and technologies to assist in re-engineering and migrations to newer technology programs. These services include: prototyping; design and development for new software products; testing, maintenance and sustenance engineering support; and deployment support.

The cost of revenues was $209.1 million for the nine months ended September 30, 2005, representing an increase of 47.4% from $141.9 million for the same period in 2004.

Gross profit for the nine months ended September 30, 2005 was $117.3 million, representing an increase of 27.6% from $92.0 million in the same period in 2004.

Operating income was $52.4 million in the nine months ended September 30, 2005, representing an increase of 15.4% from $45.4 million in the same period in 2004.

Net income was $46.2 million in the nine months ended September 30, 2005, representing an increase of 14.5% from $40.3 million in the same period in 2004.