The role of IT in enterprises has grown far beyond operational support to become a source of competitive advantage. Enterprises are using Internet-based IT applications to facilitate critical interactions with customers, vendors and partners to compete in a global, real-time environment. At the same time, enterprises are using IT applications and data to address regulatory changes, meet market demands and improve business efficiency. As a result, leading enterprises are using IT to accelerate time-to-market, increase productivity and improve customer service.

Many enterprises increasingly manage their technology costs and shortage of locally-available IT professionals by outsourcing IT services offshore. According to a 2006 IDC report, 20.8% of U.S. IT services, including application management, custom application development, IT consulting, information systems outsourcing, systems integration and other related activities, will move to offshore players by 2010.

Using a global delivery model, IT service providers employ skilled labor in lower-cost geographies in order to cost-effectively deliver high quality services to their clients. According to IDC, in 2005, the largest markets for these offshore IT services were concentrated in the United States and in Europe, the Middle East and Africa with market shares of 79.6% and 17.4%, respectively.

A 2005 NASSCOM-McKinsey report estimates that global offshore IT services adoption will increase at a compounded annual growth rate of 24.4% from $18.4 billion for the 12 months ended March 31, 2005 to $55.0 billion for the 12 months ending March 31, 2010. This exceeds the estimate in IDC’s 2007 Worldwide IT Spending 2006-2010 Forecast Update by Vertical Market of 5.8% compounded annual growth rate for the overall IT services industry from calendar year 2005 to calendar year 2010.

The Company provides IT consulting services to assist its clients with their continually-changing IT environments. The Company helps clients analyze business and/or technology problems and identify and design platform-based solutions. The Company also assists its clients in planning their IT initiatives and transition plans.

The Company’s technology implementation services involve building, testing and deploying IT applications, and consolidating and rationalizing its clients’ existing IT applications and IT environments into platforms.

The Company’s technology implementation services are typically characterized by short delivery cycles, stringent service levels and evolving requirements.

The Company provides a broad set of application outsourcing services that enables providing of comprehensive support for its clients’ software applications and platforms.

Gross profit increased from $22.7 million in the nine months ended December 31, 2005 to $40.8 million in the nine months ended December 31, 2006, an increase of $18.1 million, or 79.6%.

Operating expenses increased from $23.8 million in the nine months ended December 31, 2005 to $30.6 million in the nine months ended December 31, 2006, an increase of $6.8 million, or 28.2%.

Income (loss) from operations increased from a loss of $1.1 million in the nine months ended December 31, 2005 to income of $10.2 million in the nine months ended December 31, 2006, an increase of $11.3 million.

Net income (loss) increased from a net loss of $0.6 million in the nine months ended December 31, 2005 to net income of $15.5 million in the nine months ended December 31, 2006, an increase of $16.1 million.