Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2010	Feb. 24, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	TELETECH HOLDINGS INC
Entity Central Index Key	0001013880
Document Type	10-K
Document Period End Date	Dec. 31, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 372,485,127
Entity Common Stock, Shares Outstanding		56,956,450

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Current assets
Cash and cash equivalents	$ 119,385	$ 109,424
Accounts receivable, net	233,706	216,614
Prepaids and other current assets	38,486	39,144
Deferred tax assets, net	8,770	5,911
Income tax receivable	23,869	31,282
Total current assets	424,216	402,375
Long-term assets
Property, plant and equipment, net	105,528	126,995
Goodwill	52,707	45,250
Contract acquisition costs, net	2,782	8,049
Deferred tax assets, net	37,944	36,527
Other long-term assets	37,446	20,971
Total long-term assets	236,407	237,792
Total assets	660,623	640,167
Current liabilities
Accounts payable	23,599	17,625
Accrued employee compensation and benefits	72,406	67,106
Other accrued expenses	40,682	18,481
Income taxes payable	23,175	20,327
Deferred tax liabilities, net	2,235	3,145
Deferred revenue	5,570	13,164
Other current liabilities	4,584	6,118
Total current liabilities	172,251	145,966
Long-term liabilities
Line of credit
Negative investment in deconsolidated subsidiary	76	4,865
Deferred tax liabilities, net	3,559
Deferred rent	10,363	13,989
Other long-term liabilities	19,556	19,446
Total long-term liabilities	33,554	38,300
Total liabilities	205,805	184,266
Commitments and Contingencies
Stockholders' equity
Preferred stock - $0.01 par value: 10,000,000 shares authorized; zero shares outstanding as of December 31, 2010 and December 31, 2009
Common stock - $0.01 par value; 150,000,000 shares authorized; 57,875,269 and 62,218,238 shares outstanding as of December 31, 2010 and December 31, 2009, respectively	579	622
Additional paid-in capital	349,157	344,251
Treasury stock at cost: 24,179,176 and 19,836,208 shares as of December 31, 2010 and December 31, 2009, respectively	(322,946)	(251,691)
Accumulated other comprehensive income	20,334	10,513
Retained earnings	396,602	346,728
Noncontrolling interest	11,092	5,478
Total stockholders' equity	454,818	455,901
Total liabilities and stockholders' equity	$ 660,623	$ 640,167

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2010	Dec. 31, 2009
Stockholders' equity
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares outstanding
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares outstanding	57,875,269	62,218,238
Treasury stock, shares	24,179,176	19,836,208

Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Statements of Operations and Comprehensive Income (Loss) [Abstract]
Revenue	$ 1,094,906	$ 1,167,915	$ 1,400,147
Operating expenses
Cost of services (exclusive of depreciation and amortization presented separately below)	789,697	820,517	1,024,451
Selling, general and administrative	165,812	180,039	199,495
Depreciation and amortization	50,218	56,991	59,166
Restructuring charges, net	13,476	5,072	6,059
Impairment losses	1,958	4,587	2,018
Total operating expenses	1,021,161	1,067,206	1,291,189
Income from operations	73,745	100,709	108,958
Other income (expense)
Interest income	2,129	2,634	4,816
Interest expense	(3,161)	(3,158)	(6,738)
Other income (expense), net	9,256	2,858	(2,432)
Total other income (expense)	8,224	2,334	(4,354)
Income before income taxes	81,969	103,043	104,604
Provision for income taxes	(28,431)	(27,477)	(27,269)
Net income	53,538	75,566	77,335
Other comprehensive income (loss)
Foreign currency translation adjustments	8,080	18,231	(48,396)
Derivatives valuation, net of tax	2,623	25,647	(42,596)
Other	(792)		100
Total comprehensive income (loss)	63,449	119,444	(13,557)
Comprehensive income attributable to noncontrolling interest	(3,754)	(4,157)	(3,604)
Total comprehensive income (loss) attributable to TeleTech	59,695	115,287	(17,161)
Net income attributable to noncontrolling interest	(3,664)	(3,812)	(3,588)
Net income attributable to TeleTech shareholders	$ 49,874	$ 71,754	$ 73,747
Weighted average shares outstanding
Basic	60,361	62,891	68,208
Diluted	61,792	64,238	69,578
Net income per share attributable to TeleTech shareholders
Basic	$ 0.83	$ 1.14	$ 1.08
Diluted	$ 0.81	$ 1.12	$ 1.06

Consolidated Statement of Stockholders' Equity (USD $) In Thousands, except Share data	Total	Equity of the Company Common Stock [Member]	Equity of the Company Treasury Stock [Member]	Equity of the Company Additional Paid-in Capital [Member]	Equity of the Company Accumulated Other Comprehensive Income (Loss) [Member]	Equity of the Company Retained Earnings [Member]	Noncontrolling Interest [Member]
Beginning balance,value at Dec. 31, 2007	$ 454,756	$ 698	$ (143,205)	$ 334,593	$ 57,888	$ 201,227	$ 3,555
Preferred stock beginning balance, share at Dec. 31, 2007
Common stock beginning balance, share at Dec. 31, 2007		69,828,000
Net income	77,335					73,747	3,588
Dividends distributed to noncontrolling interest	(2,148)						(2,148)
Foreign currency translation adjustments	(48,396)				(48,412)		16
Derivatives valuation, net of tax	(42,596)				(42,596)
Exercise of stock options, share		334,000
Exercise of stock options, value	2,933	3	4,124	(1,194)
Excess tax benefit from equity-based awards	(1,176)			(1,176)
Equity-based compensation expense	10,723			10,723
Purchases of common stock, share		(6,494,000)
Purchases of common stock, value	(89,580)	(65)	(89,515)
Cumulative effect of adoption FIN 48	(1,057)	2		(1,059)
Cumulative effect of adoption FIN 48, share	148,000
Other	100				100
Ending balance,value at Dec. 31, 2008	360,894	638	(228,596)	341,887	(33,020)	274,974	5,011
Preferred stock ending balance, share at Dec. 31, 2008
Common stock ending balance, share at Dec. 31, 2008		63,816,000
Net income	75,566					71,754	3,812
Dividends distributed to noncontrolling interest	(3,690)						(3,690)
Foreign currency translation adjustments	18,231				17,886		345
Derivatives valuation, net of tax	25,647				25,647
Vesting of restricted stock units, share		307,000
Vesting of restricted stock units, value	(1,919)	3	3,855	(5,777)
Exercise of stock options, share		621,000
Exercise of stock options, value	6,159	6	7,791	(1,638)
Excess tax benefit from equity-based awards	(1,861)			(1,861)
Equity-based compensation expense	11,640			11,640
Purchases of common stock, share		(2,526,000)
Purchases of common stock, value	(34,766)	(25)	(34,741)
Other
Ending balance,value at Dec. 31, 2009	455,901	622	(251,691)	344,251	10,513	346,728	5,478
Preferred stock ending balance, share at Dec. 31, 2009
Common stock ending balance, share at Dec. 31, 2009	62,218,238	62,218,000
Net income	53,538					49,874	3,664
Dividends distributed to noncontrolling interest	(4,140)						(4,140)
Foreign currency translation adjustments	8,080				7,990		90
Derivatives valuation, net of tax	2,623				2,623
Vesting of restricted stock units, share		420,000
Vesting of restricted stock units, value	(3,072)	5	5,448	(8,525)
Exercise of stock options, share		273,000
Exercise of stock options, value	2,792	3	3,541	(752)
Excess tax benefit from equity-based awards	811			811
Equity-based compensation expense	13,372			13,372
Purchases of common stock, share		(5,036,000)
Purchases of common stock, value	(80,295)	(51)	(80,244)
Acquisition of noncontrolling interest	6,000						6,000
Other	(792)				(792)
Ending balance,value at Dec. 31, 2010	$ 454,818	$ 579	$ (322,946)	$ 349,157	$ 20,334	$ 396,602	$ 11,092
Preferred stock ending balance, share at Dec. 31, 2010
Common stock ending balance, share at Dec. 31, 2010	57,875,269	57,875,000

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash flows from operating activities
Net income	$ 53,538	$ 75,566	$ 77,335
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	50,218	56,991	59,166
Amortization of contract acquisition costs	5,267	3,450	2,384
Amortization of debt issuance costs and other	672
Provision for doubtful accounts	600	1,412	1,990
Loss (gain) on disposal of assets	(617)	1,603	(305)
Impairment losses	1,958	4,587	2,018
Deferred income taxes	(3,030)	6,066	752
Excess tax benefit from equity-based awards	(972)	(2,345)	(1,485)
Equity-based compensation expense	13,372	11,640	10,312
(Gain) loss on foreign currency derivatives	(128)	(192)	1,942
Gain on Newgen legal settlement, net of tax	(3,542)
Changes in assets and liabilities, net of effect of acquisition:
Accounts receivable	(87)	27,258	17,668
Prepaids and other assets	16,853	(6,194)	8,658
Accounts payable and accrued expenses	19,683	(19,142)	(14,259)
Deferred revenue and other liabilities	(19,330)	(28)	(5,610)
Net cash provided by operating activities	134,455	160,672	160,566
Cash flows from investing activities
Proceeds from grant for property, plant and equipment		785	4,276
Net cash used in investing activities	(43,198)	(29,815)	(62,128)
Purchases of property, plant and equipment	(26,800)	(24,973)	(65,988)
Settlement of foreign currency contracts for net investment hedging		(1,727)
Purchases of foreign currency option contracts			(416)
Payment for contract acquisition costs		(3,900)
Investment in deconsolidated subsidiary	(3,600)
Acquisition of PRG, net of cash acquired of $2.2 million	(12,798)
Cash flows from financing activities
Proceeds from line of credit	1,257,100	920,960	1,147,730
Payments on line of credit	(1,257,100)	(1,001,760)	(1,132,330)
Payments on capital lease obligations and equipment financing	(3,749)	(2,332)	(1,359)
Net cash used in financing activities	(85,897)	(114,945)	(75,554)
Payments of debt refinancing fees	(2,288)		(1,109)
Dividends distributed to noncontrolling interest	(4,140)	(3,690)	(2,148)
Proceeds from exercise of stock options	2,792	6,159	2,933
Excess tax benefit from equity-based awards	1,783	484	309
Purchases of treasury stock	(80,295)	(34,766)	(89,580)
Effect of exchange rate changes on cash and cash equivalents	4,601	5,570	(26,181)
Increase (decrease) in cash and cash equivalents	9,961	21,482	(3,297)
Cash and cash equivalents, beginning of period	109,424
Cash and cash equivalents, end of period	119,385	109,424
Supplemental disclosures
Cash paid for interest	2,217	2,775	4,098
Cash paid for income taxes	15,593	24,543	21,196
Non-cash investing and financing activities
Acquisition of equipment through installment purchase agreements	186	3,971
Recognition of asset retirement obligations	406	183
Landlord incentives credited to deferred rent	810	165
Grant income credited to property, plant and equipment		$ 745	$ 792

OVERVIEW AND BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2010

OVERVIEW AND BASIS OF PRESENTATION [Abstract]

OVERVIEW AND BASIS OF PRESENTATION

TELETECH HOLDINGS, INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(1) OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Overview

TeleTech Holdings, Inc. and its subsidiaries (“TeleTech” or the “Company”) serve their clients through the primary businesses of Business Process Outsourcing (“BPO”), which provides outsourced business process, customer management, hosted technology, consulting and marketing services for a variety of industries via operations in the U.S., Argentina, Australia, Belgium, Brazil, Canada, China, Costa Rica, England, Germany, Ghana, Kuwait, Mexico, New Zealand, Northern Ireland, the Philippines, Scotland, South Africa, Spain, Turkey, and the United Arab Emirates.

Basis of Presentation

The Consolidated Financial Statements are comprised of the accounts of TeleTech, its wholly owned subsidiaries, its 55% equity owned subsidiary in Percepta, LLC, and its 80% interest in Peppers & Rogers Group (“PRG”) which was acquired on November 30, 2010 (see Note 2 for additional information). All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. (“GAAP”) requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates including those related to derivatives and hedging activities, income taxes including the valuation allowance for deferred tax assets, self-insurance reserves, litigation and restructuring reserves, allowance for doubtful accounts, and valuation of goodwill, long-lived and intangible assets. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions.

Concentration of Credit Risk

The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate the possibility of current and future exposures resulting in a loss. The Company evaluates the creditworthiness of its clients prior to entering into an agreement to provide services and as necessary through the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative hedging activities, as the Company diversifies its activities across six well-capitalized, investment-grade financial institutions.

Fair Value of Financial Instruments

Fair values of cash equivalents and accounts receivable and payable approximate the carrying amounts because of their short-term nature.

Cash and Cash Equivalents

The Company considers all cash and highly liquid short-term investments with an original maturity of 90 days or less to be cash equivalents. The Company manages a concentrated global treasury function in the United States with a particular focus on centralizing and safeguarding its global cash and cash equivalent reserves. While the Company generally prefers to hold U.S. Dollars, it maintains adequate cash in the functional currency of its foreign subsidiaries to support local operating costs. The Company believes that it has effectively mitigated and managed its risk relating to its global cash through its cash management practices, banking partners, and low-risk investments. However, the Company can provide no assurances that it will not sustain losses.

Accounts Receivable

An allowance for doubtful accounts is determined based on the aging of the Company's accounts receivable, historical experience, client financial condition, and management judgment. The Company writes off accounts receivable against the allowance when the Company determines a balance is uncollectible.

Derivatives

All derivative financial instruments are reported in Other assets and Other liabilities in the accompanying Consolidated Balance Sheets at fair value. Changes in fair value of derivative instruments designated as cash flow hedges are recorded in Accumulated other comprehensive income (loss), a component of Stockholders' Equity, to the extent they are deemed effective. Ineffectiveness is measured based on the change in fair value of the forward contracts and the fair value of the hypothetical derivatives with terms that match the critical terms of the risk being hedged. Based on the criteria established by current accounting standards, the Company's cash flow hedge contracts are deemed to be highly effective. Changes in fair value of the Company's net investment hedge are recorded in cumulative translation adjustment in Accumulated other comprehensive income (loss) in the accompanying Consolidated Balance Sheets offsetting the change in cumulative translation adjustment attributable to the hedged portion of the Company's net investment in the foreign operation. Any realized gains or losses resulting from the cash flow hedges are recognized together with the hedged transaction within Revenue. Gains and losses from the settlements of the Company's net investment hedges remain in Accumulated other comprehensive income (loss) until partial or complete liquidation of the applicable net investment.

The Company also enters into fair value derivative contracts that hedge against foreign currency exchange gains and losses primarily associated with short-term payables and receivables. Changes in the fair value of derivative instruments designated as fair value hedges affect the carrying value of the asset or liability hedged, with changes in both the derivative instrument and the hedged asset or liability being recognized in Other income (expense), net in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss).

In addition to hedging activities, the Company has embedded derivatives in certain foreign lease contracts. The Company bifurcates and calculates the fair values of the embedded derivative feature from the host contract with any changes in fair value of the embedded derivatives recognized in Cost of services.

Property, Plant and Equipment

Property, plant and equipment are stated at historical cost less accumulated depreciation and amortization. Maintenance, repairs and minor renewals are expensed as incurred.

Depreciation and amortization are computed on the straight-line method based on the following estimated useful lives:

Building	25 years
Computer equipment and software	3 to 5 years
Telephone equipment	4 to 7 years
Furniture and fixtures	5 years
Leasehold improvements	Lesser of economic useful life (typically 10 years)
	or original lease term
Other	3 to 7 years

The Company evaluates the carrying value of property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. An asset is considered to be impaired when the forecasted undiscounted cash flows of an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of forecasted future cash flows.

Software Development Costs

The Company capitalizes costs incurred to acquire or develop software for internal use. Capitalized software development costs are amortized using the straight-line method over an estimated useful life equal to the lesser of the license term or 4 years.

Goodwill

The Company assesses realizability of goodwill annually in the fourth quarter, and whenever events or changes in circumstances indicate it may be impaired. Impairment, if any, is measured based on the estimated fair value of the reporting unit. The Company determines fair value based on discounted future probability-weighted cash flows. Impairment occurs when the carrying amount of goodwill exceeds its estimated fair value.

Contract Acquisition Costs

Amounts paid to or on behalf of clients to obtain long-term contracts are capitalized and amortized in proportion to the initial expected future revenue from the contract, which in most cases results in straight-line amortization over the life of the contract. These costs are recorded as a reduction to Revenue. The Company evaluates the recoverability of these costs based on the individual underlying client contracts' forecasted future cash flows.

Other Intangible Assets

The Company has other intangible assets that include customer relationships (definite-lived) and trade names (indefinite-lived). Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from 9 to 10 years. The Company evaluates the carrying value of its definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is considered to be impaired when the forecasted undiscounted cash flows of an asset group are estimated to be less than its carrying value. The Company evaluates indefinite-lived intangible assets for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An intangible asset with an indefinite life (a trade name) is evaluated for possible impairment by comparing the fair value of the asset with its carrying value. Fair value is estimated as the discounted value of future revenues arising from a trade name using a royalty rate that an independent party would pay for use of that trade name. An impairment charge is recorded if the trade name's carrying value exceeds its estimated fair value.

Self Insurance Liabilities

The Company self-insures for certain levels of workers' compensation, employee health and general liability insurance. The Company records estimated liabilities for these insurance lines based upon analyses of historical claims experience. The most significant assumption the Company makes in estimating these liabilities is that future claims experience will emerge in a similar pattern with historical claims experience. The liabilities related to workers' compensation and employee health insurance are included in Accrued employee compensation and benefits in the accompanying Consolidated Balance Sheets. The liability for other general liability insurance is included in Other accrued expenses in the accompanying Consolidated Balance Sheets.

Restructuring Liabilities

The Company routinely assesses the profitability and utilization of its delivery centers and existing markets. In some cases, the Company has chosen to close under-performing delivery centers and complete reductions in workforce to enhance future profitability. Severance payments that occur from reductions in workforce are in accordance with the Company's postemployment plans and/or statutory requirements that are communicated to all employees upon hire date; therefore, severance liabilities are recognized when they are determined to be probable and reasonably estimable. Other liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, rather than upon commitment to a plan.

A significant assumption used in determining the amount of estimated liability for closing delivery centers is the future lease payments on vacant centers, which the Company determines based on its ability to successfully negotiate early termination agreements with landlords and/or to sublease the facility. If the Company's actual results differ from these estimates, additional gains or losses would be recorded within Restructuring charges, net in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). The accrual for restructuring liabilities is included in Other accrued expenses in the accompanying Consolidated Balance Sheets.

Grant Advances

The Company receives grants from various government levels as an incentive to locate delivery centers in their jurisdictions. The Company's policy is to account for grant monies received in advance as a liability and recognize to income as either a reduction to Cost of services or Depreciation expense over the term of the grant, when it is reasonably assured that the conditions of the grant have been or will be met.

Income Taxes

Under current accounting standards, the Company accounts for income tax through the recognition of deferred tax assets and liabilities for the expected future income tax consequences of transactions that have been included in the Consolidated Financial Statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Gross deferred tax assets may then be reduced by a valuation allowance for amounts that do not satisfy the realization criteria established by current accounting standards.

The Company accounts for uncertain tax positions using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit. The second step is to estimate and measure the tax benefit as the amount that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority. The Company evaluates these uncertain tax positions on a quarterly basis. This evaluation is based on the consideration of several factors including changes in facts or circumstances, changes in applicable tax law, and settlement of issues under audit. The Company recognizes interest and penalties related to uncertain tax positions as a part of the Provision for income taxes in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company provides for U.S. income tax expense on the earnings of foreign subsidiaries unless the subsidiaries' earnings are considered permanently reinvested outside the U.S.

Equity-Based Compensation Expense

Equity-based compensation expense for all share-based payment awards granted is determined based on the grant-date fair value net of an estimated forfeiture rate on a straight-line basis over the requisite service period of the award, which is typically the vesting term of the share-based payment award. The Company estimates the forfeiture rate annually based on its historical experience of forfeited awards.

Foreign Currency Translation

The assets and liabilities of the Company's foreign subsidiaries, whose functional currency is not the U.S. dollar, are translated at the exchange rates in effect on the last day of the period and income and expenses are translated using the monthly average exchange rates in effect for the period in which the items occur. Foreign currency translation gains and losses are recorded in Accumulated other comprehensive income (loss) within equity. Foreign currency transaction gains and losses are included in Other income (expense), net in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss).

Revenue Recognition

For each client arrangement, the Company determines whether evidence of an arrangement exists, delivery of service has occurred, the fee is fixed or determinable and collection is reasonably assured. If all criteria are met, the Company recognizes revenue at the time services are performed. The Company's BPO business recognizes revenue as follows:

Production Rate — Revenue is recognized based on the billable time or transactions of each associate, as defined in the client contract. The rate per billable time or transaction is based on a pre-determined contractual rate. This contractual rate can fluctuate based on the Company's performance against certain pre-determined criteria related to quality and performance.

Performance-based — Under performance-based arrangements, the Company is paid by its clients based on the achievement of certain levels of sales or other client-determined criteria specified in the client contract. The Company recognizes performance-based revenue by measuring its actual results against the performance criteria specified in the contracts. Amounts collected from clients prior to the performance of services are recorded as deferred revenue, which is recorded in Other current liabilities or Other long-term liabilities in the accompanying Consolidated Balance Sheets.

Hybrid — Hybrid models include production rate and performance-based elements. For these types of arrangements, the Company allocates revenue to the elements based on the relative fair value of each element. Revenue for each element is recognized based on the methods described above.

Certain client programs provide for adjustments to monthly billings based upon whether the Company meets or exceeds certain performance criteria as set forth in the contract. Increases or decreases to monthly billings arising from such contract terms are reflected in Revenue in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) as earned or incurred. Operating results for the year 2010 include a $2.0 million reduction to revenue for disputed service delivery issues which occurred in 2009.

Training Revenue and Costs

Current accounting standards require the deferral of revenue for initial training that occurs upon commencement of a new client contract if that training is billed separately to a client. Accordingly, the corresponding training costs, consisting primarily of labor and related expenses, are also deferred. In these circumstances, both the training revenue and costs are amortized straight-line over the life of the client contract as a component of Revenue and Cost of services, respectively. In situations where these initial training costs are not billed separately, but rather included in the hourly service rates paid by the client over the life of the contract, no deferral is necessary as the revenue is being recognized over the life of the contract and the associated training costs are expensed as incurred.

Deferred Revenue

The Company records amounts billed and received, but not earned, as deferred revenue. These amounts are recorded in Deferred revenue or as a component of Other long-term liabilities in the accompanying Consolidated Balance Sheets based on the period over which the Company expects to render services.

Rent Expense

The Company has negotiated certain rent holidays, landlord/tenant incentives and escalations in the base price of rent payments over the initial term of its operating leases. The initial term includes the “build-out” period of leases, where no rent payments are typically due. The Company recognizes rent holidays and rent escalations on a straight-line basis to rent expense over the lease term. The landlord/tenant incentives are recorded as an increase to deferred rent liabilities and amortized on a straight line basis to rent expense over the initial lease term.

Asset Retirement Obligations

Asset retirement obligations relate to legal obligations associated with the retirement of long-lived assets resulting from the acquisition, construction, development and/or normal use of the underlying assets.

The Company records all asset retirement obligations at estimated fair value. The Company's asset retirement obligations primarily relate to clauses in its delivery center operating leases which require the Company to return the leased premises to its original condition. The associated asset retirement obligations are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability, reported within Other long-term liabilities, is accreted through charges to operating expenses. If the asset retirement obligation is settled for an amount other than the carrying amount of the liability, the Company recognizes a gain or loss on settlement.

Recently Issued Accounting Pronouncements

Effective January 1, 2010, the Company adopted a new financial accounting statement that requires additional disclosures about transfers of financial assets, including securitization transactions, and where companies have continuing exposure to the risks related to the transferred financial assets. The new statement eliminates the concept of a “qualifying special-purpose entity,” changes the requirements for derecognizing financial assets, and requires additional disclosures. The adoption of this standard did not have a material impact on the Company's results of operations, financial position or cash flows.

Effective January 1, 2010, the Company adopted a new financial accounting statement that changes how TeleTech determines when an entity that is insufficiently capitalized or is not controlled through voting or similar rights should be consolidated. The determination of whether TeleTech is required to consolidate an entity is based on, among other things, an entity's purpose and design and TeleTech's ability to direct the activities of the entity that most significantly impact the entity's economic performance. The adoption of this standard did not have a material impact on the Company's results of operations, financial position, or cash flows.

In September 2009, the Financial Accounting Standards Board (“FASB”) issued new revenue guidance that requires an entity to apply the relative selling price allocation method in order to estimate a selling price for all units of accounting, including delivered items when vendor-specific objective evidence or acceptable third-party evidence does not exist. The new guidance is effective for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010 and shall be applied on a prospective basis. The Company expects to adopt this guidance effective January 1, 2011 and does not expect that the new guidance will have a material impact on its results of operations, financial position, or cash flows.

In December 2010, the FASB issued new guidance related to goodwill impairment testing. The new guidance clarifies the requirements of when to perform step 2 of impairment testing for goodwill for reporting units with zero or negative carrying amounts. The Company will adopt this guidance on January 1, 2011. Historically, the Company has not had a reporting unit with goodwill and a zero or negative carrying amount; therefore, the Company does not expect that the new guidance will have a material impact on its results of operations, financial position, or cash flows.

- Definition

Description containing the entire organization, consolidation and basis of presentation of financial statements disclosure. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References+ Details

ACQUISITIONS

12 Months Ended

Dec. 31, 2010

ACQUISITIONS

ACQUISITIONS

(2) ACQUISITIONS

On November 30, 2010, the Company acquired an 80% interest in Peppers & Rogers Group. PRG is a leading global management consulting firm specializing in customer-centric strategies for Global 1000 companies and is recognized as a leading authority on customer-based strategies with a deep understanding of the most powerful levers that drive customer loyalty and business results. PRG currently operates offices on six continents across the globe, including headquarters in Norwalk, Connecticut, and Istanbul, Turkey, along with regional offices in Belgium, Germany, United Arab Emirates, South Africa, and Kuwait. PRG has 130 employees.

The up-front cash consideration paid was $15.0 million, subject to working capital adjustments on the date of acquisition as defined in the purchase and sale agreement. The working capital adjustment was approximately $9.1 million and is included in Other accrued expenses in the accompanying Consolidated Balance Sheets as of December 31, 2010. An additional $5.0 million payment is due on March 1, 2012. This $5.0 million payment was recognized at fair value using a discounted cash flow approach with a discount rate of 18.4%. This measurement is based on significant inputs not observable in the market, which are deemed to be Level 3 inputs. The fair value on the date of acquisition was approximately $4.4 million and is included in Other long-term liabilities in the accompanying Consolidated Balance Sheets as of December 31, 2010. This value will be accreted up to the $5.0 million payment using the effective interest rate method.

The purchase and sale agreement includes a contingent consideration arrangement that requires additional consideration to be paid in 2013 if PRG achieves a specified fiscal year 2012 EBITDA target. The range of the undiscounted amounts the Company could pay under the contingent consideration agreement is between zero and $5.0 million. The fair value of the contingent consideration recognized on the acquisition date was zero and was estimated by applying the income approach. This measure is based on significant inputs not observable in the market (Level 3 inputs). Key assumptions include (i) a discount rate of 30.6% percent and (ii) probability adjusted level of EBITDA between $9.0 million and $12.6 million.

The fair value of the 20% noncontrolling interest of $6.0 million in PRG was estimated by applying a market approach. This fair value measurement is based on significant inputs not observable in the market (Level 3 inputs). The fair value estimates are based on assumed financial multiplies of companies deemed similar to PRG, and assumed adjustments because of the lack of control or lack of marketability that market participants would consider when estimating fair value of the noncontrolling interest in PRG.

The purchase and sale agreement also included an option for the Company to acquire the remaining 20% interest in PRG exercisable in 2015 for a period of one year, with a one year extension (the “Initial Exercise Period”). If the Company does not acquire the remaining 20% of PRG pursuant to its call option during the Initial Exercise Period, PRG has an option to purchase the Company's 80% interest in PRG. The exercise price is based on a multiple of EBITDA as defined in the purchase and sale agreement.

The following summarizes the preliminary estimated fair values of the identifiable assets acquired and liabilities assumed at the acquisition date (in thousands). The estimates of fair value of identifiable assets acquired and liabilities assumed are preliminary, pending completion of the valuation, thus are subject to revisions which may result in adjustments to the values presented below.

		Preliminary Estimates of Acquisition Date Fair Value
Cash		$	2,202
Accounts receivable, net			16,843
Property, plant and equipment			359
Other assets			843
Customer relationships			9,300
Trade name			6,400
Goodwill			7,251
		$	43,198

Accounts payable		$	1,515
Accrued expenses			1,599
Deferred tax liability			3,690
Deferred revenue			598
Line of credit			570
Other			709
		$	8,681

Noncontrolling interest		$	6,000

	Total purchase price	$	28,517

The goodwill recognized is attributable primarily to the assembled workforce of PRG, expected synergies, and other factors. None of the goodwill is expected to be deductible for income tax purposes. The operating results of PRG are reported within the International BPO segment from the date of acquisition. The Company recognized $0.4 million of acquisition related expenses that were recorded in Selling, general and administrative expense in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) during the year ended December 31, 2010.

DECONSOLIDATION OF A SUBSIDIARY

12 Months Ended

Dec. 31, 2010

DECONSOLIDATION OF SUBSIDIARY [Abstract]

DECONSOLIDATION OF A SUBSIDIARY

(3) DECONSOLIDATION OF A SUBSIDIARY

On December 22, 2008, Newgen Results Corporation (“Newgen”), a wholly-owned subsidiary of the Company, filed a voluntary petition for liquidation under Chapter 7 in the United States Bankruptcy Court for the District of Delaware. The consolidation of a majority-owned subsidiary is precluded where control does not rest with the majority owners and under legal reorganization or bankruptcy control rests with the Bankruptcy Court. Accordingly, the Company deconsolidated Newgen as of December 22, 2008.

On September 9, 2010, Newgen settled a legal claim for $3.6 million that was paid for by the Company on behalf of Newgen. As a result of the legal settlement, the Company recognized a $5.9 million gain in Other income (expense), net and a $2.3 million expense in Provision for income taxes for the year 2010. As of December 31, 2010, the Company's negative investment in Newgen was $0.1 million as presented in the accompanying Consolidated Balance Sheets.

The following condensed financial statements of Newgen have been prepared to show the remaining liabilities subject to compromise by the Bankruptcy Court to be reported separately from the liabilities not subject to compromise (pre and post rent settlement). All liabilities included in the condensed financial statements below are subject to compromise as of December 31, 2010 and represent the current estimate of the amount of known or potential pre-petition claims that are subject to final settlement. Such claims remain subject to future adjustments.

				December 31, 2010		December 31, 2009		December 22, 2008
Total current assets			$	127	$	1,700	$	1,700
Total long-term assets				-		2,379		3,110
	Total assets		$	127	$	4,079	$	4,810

Total current liabilities			$	203	$	7,886	$	3,931
Total long-term liabilities				-		-		5,744
	Total liabilities			203		7,886		9,675
		Total stockholders' deficit		(76)		(3,807)		(4,865)
		Total liabilities and stockholders' deficit	$	127	$	4,079	$	4,810

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2010

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

(4) SEGMENT INFORMATION

The Company serves its clients through the primary business of BPO services.

The Company's BPO business provides outsourced business process, consulting, technology services and customer management services for a variety of industries through global delivery centers and represents 100% of total annual revenue. The Company's North American BPO segment is comprised of sales to all clients based in North America (encompassing the U.S. and Canada), while the Company's International BPO segment is comprised of sales to all clients based in countries outside of North America.

The Database Marketing and Consulting segment, of which the Company sold substantially all the assets and liabilities in September 2007, provided outsourced database management, direct marketing and related customer acquisitions and retention services for automobile dealerships and manufacturers in North America and operated under the name Newgen Results Corporation.

The Company allocates to each segment its portion of corporate operating expenses. All inter– company transactions between the reported segments for the periods presented have been eliminated.

The following tables present certain financial data by segment (amounts in thousands):

			As of and for the
			Year Ended December 31,
			2010		2009		2008

Revenue
North American BPO		$	824,265	$	886,738	$	1,020,722
International BPO			270,641		281,177		379,425
Database Marketing and Consulting			-		-		-
	Total	$	1,094,906	$	1,167,915	$	1,400,147

Depreciation and amortization
North American BPO		$	38,652	$	39,603	$	41,385
International BPO			11,566		17,388		17,756
Database Marketing and Consulting			-		-		25
	Total	$	50,218	$	56,991	$	59,166

Income from operations
North American BPO		$	83,762	$	111,497	$	103,084
International BPO			(10,017)		(10,788)		6,351
Database Marketing and Consulting			-		-		(477)
	Total	$	73,745	$	100,709	$	108,958

Capital expenditures
North American BPO		$	22,838	$	22,892	$	40,216
International BPO			3,962		2,081		25,772
Database Marketing and Consulting			-		-		-
	Total	$	26,800	$	24,973	$	65,988

Assets
North American BPO		$	417,632	$	450,434	$	483,187
International BPO			242,991		189,733		185,755
Database Marketing and Consulting			-		-		-
	Total	$	660,623	$	640,167	$	668,942

Goodwill
North American BPO		$	35,885	$	35,885	$	35,885
International BPO			16,822		9,365		8,265
Database Marketing and Consulting			-		-		-
	Total	$	52,707	$	45,250	$	44,150

The following tables present certain financial data based upon the geographic location where the services are provided (amounts in thousands):

		As of and for the
		Year Ended December 31,
		2010		2009		2008

Revenue
United States	$	406,652	$	411,438	$	407,546
Philippines		292,726		309,793		289,026
Latin America		203,420		200,486		304,093
Europe / Middle East / Africa		120,643		138,290		154,146
Canada		52,396		82,500		154,190
Asia Pacific		19,069		25,408		91,146
Total	$	1,094,906	$	1,167,915	$	1,400,147

Property, plant and equipment, gross
United States	$	274,336	$	260,243	$	261,064
Philippines		88,513		79,898		71,974
Latin America		88,984		85,662		82,201
Europe / Middle East / Africa		25,261		24,517		21,828
Canada		29,697		43,408		49,813
Asia Pacific		27,100		24,610		20,018
Total	$	533,891	$	518,338	$	506,898

Other long-term assets
United States	$	14,417	$	15,127	$	15,836
Philippines		2,906		2,042		2,573
Latin America		1,143		1,107		1,814
Europe / Middle East / Africa		17,241		1,384		1,038
Canada		113		164		561
Asia Pacific		1,626		1,147		1,240
Total	$	37,446	$	20,971	$	23,062

ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS

12 Months Ended

Dec. 31, 2010

ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS [Abstract]

ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS

(5) ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS

Accounts receivable, net in the accompanying Consolidated Balance Sheets consists of the following (amounts in thousands):

		December 31,
		2010		2009
Accounts receivable		$	240,012	$	222,194
Less: Allowance for doubtful accounts			(6,306)		(5,580)
	Accounts receivable, net	$	233,706	$	216,614

Activity in the Company's Allowance for doubtful accounts consists of the following (amounts in thousands):

		December 31,
		2010		2009		2008
Balance, beginning of year		$	5,580	$	5,551	$	4,725
	Provision for doubtful accounts		600		1,412		1,990
	Uncollectible receivables written-off		(67)		(2,069)		(193)
	Effect of foreign currency		193		686		(971)
Balance, end of year		$	6,306	$	5,580	$	5,551

Significant Clients

The Company had no clients in the year ended December 31, 2010 that contributed at least 10% of total revenue and had one client in each of the years ended 2009 and 2008 that contributed at least 10% of total revenue as reflected in the table below. Each operates in the communications industry and is included in the North American BPO segment. The revenue from these clients as a percentage of total revenue was as follows:

	Year Ended December 31,
	2010		2009		2008

T-Mobile		8%		10%		4%
Sprint Nextel		3%		6%		13%

Accounts receivable from these clients were as follows (amounts in thousands):

	Year Ended December 31,
	2010		2009		2008

T-Mobile	$	22,610	$	27,569	$	15,987
Sprint Nextel	$	6,879	$	6,554	$	20,375

The loss of one or more of its significant clients could have a material adverse effect on the Company's business, operating results, or financial condition. The Company does not require collateral from its clients. To limit the Company's credit risk, management performs periodic credit evaluations of its clients and maintains allowances for uncollectible accounts and may require pre-payment for services. Although the Company is impacted by economic conditions in various industry segments, management does not believe significant credit risk exists as of December 31, 2010.

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2010

PROPERTY PLANT AND EQUIPMENT

PROPERTY PLANT AND EQUIPMENT

(6) PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following (amounts in thousands):

		December 31,
		2010		2009
Land and buildings		$	45,372	$	44,528
Computer equipment and software			245,333		232,456
Telephone equipment			45,743		45,150
Furniture and fixtures			54,364		54,685
Leasehold improvements			140,412		140,762
Motor vehicles			898		492
Construction-in-progress and other			1,768		264
	Property, plant and equipment, gross		533,891		518,338
Less: Accumulated depreciation and amortization			(428,363)		(391,343)
	Property, plant and equipment, net	$	105,528	$	126,995

Depreciation and amortization expense for property, plant and equipment was $49.2 million, $55.9 million and $57.6 million for the years ended December 31, 2010, 2009 and 2008, respectively.

Included in computer equipment and software in the table above, the Company had $2.7 million and $1.1 million of unamortized Software Development Costs as of December 31, 2010 and 2009, respectively. Amortization expense for Software Development Costs was $0.2 million, $0.4 million and $1.0 million for the years ended December 31, 2010, 2009 and 2008, respectively, which is included in the depreciation and amortization expense for property, plant and equipment discussed above.

GOODWILL AND IMPAIRMENT

12 Months Ended

Dec. 31, 2010

GOODWILL AND IMPAIRMENT [Abstract]

GOODWILL AND IMPAIRMENT

(7) GOODWILL AND IMPAIRMENT

Goodwill consisted of the following (amounts in thousands):

		December 31, 2009		Acquisitions		Impairments		Effect of Foreign Currency		December 31, 2010

North American BPO		$	35,885	$	-	$	-	$	-	$	35,885
International BPO			9,365		7,251		-		206		16,822
	Total	$	45,250	$	7,251	$	-	$	206	$	52,707

		December 31, 2008		Acquisitions		Impairments		Effect of Foreign Currency		December 31, 2009

North American BPO		$	35,885	$	-	$	-	$	-	$	35,885
International BPO			8,265		-		-		1,100		9,365
	Total	$	44,150	$	-	$	-	$	1,100	$	45,250

Impairment

The Company performs a goodwill impairment test on at least an annual basis. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the business, the useful life over which cash flows will occur and determination of the Company's weighted average cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. The Company conducts its annual goodwill impairment test in the fourth quarter each year, or more frequently if indicators of impairment exist. As of December 31, 2010, the Company's assessment of goodwill impairment indicated that the fair values of the Company's reporting units were substantially in excess of their estimated carrying values, and therefore goodwill in the reporting units was not impaired.

OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2010

OTHER INTANGIBLE ASSETS [Abstract]

OTHER INTANGIBLE ASSETS

(9) OTHER INTANGIBLE ASSETS

Other intangible assets which are included in Other long-term assets in the accompanying Consolidated Balance Sheets consisted of the following (amounts in thousands):

			December 31, 2009		Amortization and Impairment		Acquisitions or Disposals		Effect of Foreign Currency		December 31, 2010
Customer relationships, gross		$	7,300	$	-		9,300		-	$	16,600
Customer relationships
	accumulated amortization		(2,555)		(816)		-		-		(3,371)
Trade name - indefinite life			1,800		-		6,400		-		8,200
	Other intangible assets, net	$	6,545	$	(816)	$	15,700	$	-	$	21,429

			December 31, 2008		Amortization and Impairment		Acquisitions or Disposals		Effect of Foreign Currency		December 31, 2009
Customer relationships, gross		$	11,445	$	(604)	$	(4,879)	$	1,338	$	7,300
Customer relationships
	accumulated amortization		(5,494)		(1,071)		4,879		(869)		(2,555)
Trade name - indefinite life			1,800		-		-		-		1,800
	Other intangible assets, net	$	7,751	$	(1,675)	$	-	$	469	$	6,545

Customer relationships are being amortized over a weighted average useful life of 9.6 years. Amortization expense related to other intangible assets was $0.8 million, $1.1 million and $1.6 million for the years ended December 31, 2010, 2009 and 2008, respectively. In the year ended 2009, the Company recognized $0.6 million in impairment losses related to its customer relationships intangible asset due to the loss of a significant customer in the International BPO segment. The impairment loss was equivalent to the remaining net carrying value of the particular asset at the time of the impairment.

Expected future amortization of other intangible assets as of December 31, 2010 is as follows (amounts in thousands):

2011		$	1,763
2012			1,763
2013			1,763
2014			1,763
2015			1,763
Thereafter			4,414
	Total	$	13,229

DERIVATIVES

12 Months Ended

Dec. 31, 2010

DERIVATIVES [Abstract]

DERIVATIVES [Label_113]

Includes contracts to purchase Philippine pesos in exchange for New Zealand dollars and Australian dollars, which are translated into equivalent U.S. dollars on December 31, 2010 and December 31, 2009.

Includes contracts to purchase British pound sterling in exchange for Euros, which are translated into equivalent U.S. dollars on December 31, 2010 and December 31, 2009.

(10) DERIVATIVES

Cash Flow Hedges

The Company enters into foreign exchange forward and option contracts to reduce its exposure to foreign currency exchange rate fluctuations that are associated with forecasted revenue earned in foreign locations. Upon proper qualification, these contracts are designated as cash flow hedges. It is the Company's policy to only enter into derivative contracts with investment grade counterparty financial institutions, and correspondingly, the fair value of derivative assets consider, among other factors, the creditworthiness of these counterparties. Conversely, the fair value of derivative liabilities reflects the Company's creditworthiness. As of December 31, 2010, the Company has not experienced, nor does it anticipate any issues related to derivative counterparty defaults. The following table summarizes the aggregate unrealized net gain or loss in Accumulated other comprehensive income (loss) for the years ended December 31, 2010, 2009 and 2008 (amounts in thousands and net of tax):

	Year Ended December 31,
	2010		2009		2008

Aggregate unrealized net gain (loss) at beginning of year	$	4,468	$	(21,180)	$	21,417
Net gain/(loss) from change in fair value of cash flow hedges		8,513		14,427		(39,624)
Net (gain)/loss reclassified to earnings from effective hedges		(5,890)		11,221		(2,973)
Aggregate unrealized net gain/(loss) at end of year	$	7,091	$	4,468	$	(21,180)

The Company's cash flow hedging instruments as of December 31, 2010 and 2009 are summarized as follows (amounts in thousands). All hedging instruments are forward contracts, except as noted.

2010	Local Currency Notional Amount	U.S. Dollar Notional Amount			% Maturing in 2011	Contracts Maturing Through
Canadian Dollar	10,200	$	8,493		100.0%	December 2011
Philippine Peso	7,731,000		169,364	⁽¹⁾	66.6%	December 2013
Mexican Peso	311,500		22,383		100.0%	December 2011
British Pound Sterling	4,647		7,231	⁽²⁾	100.0%	December 2011
		$	207,471

2009	Local Currency Notional Amount	U.S. Dollar Notional Amount
Canadian Dollar	14,400	$	11,782
Canadian Dollar Call Options	19,400		17,301
Philippine Peso	4,615,000		96,354	⁽¹⁾
Argentine Peso	9,000		2,454
Mexican Peso	491,500		34,880
S. African Rand	23,000		2,081
British Pound Sterling	3,876		6,565	⁽²⁾
		$	171,417

Includes contracts to purchase British pound sterling in exchange for Euros, which are translated into equivalent U.S. dollars on December 31, 2010 and December 31, 2009.

Hedge of Net Investment

In 2008, the Company entered into a foreign exchange forward contract to hedge its net investment in a foreign operation which was settled in May 2009. Changes in fair value of the Company's net investment hedge are recorded in the cumulative translation adjustment in Accumulated other comprehensive income (loss) in the accompanying Consolidated Balance Sheets offsetting the change in the cumulative translation adjustment attributable to the hedged portion of the Company's net investment in the foreign operation. Gains and losses from the settlements of the Company's net investment hedge remain in Accumulated other comprehensive income (loss) until partial or complete liquidation of the applicable net investment. A loss of $1.2 million from the settlements of net investment hedges was recorded within Accumulated other comprehensive income (loss) at December 31, 2010.

Fair Value Hedges

The Company enters into foreign exchange forward contracts to hedge against foreign currency exchange gains and losses on certain receivables and payables of the Company's foreign operations. Changes in the fair value of derivative instruments designated as fair value hedges, as well as the offsetting gain or loss on the hedged asset or liability, are recognized in earnings in Other income (expense), net. As of December 31, 2010, the total notional amount of the Company's forward contracts used as fair value hedges was $93.3 million.

Embedded Derivatives

In addition to hedging activities, the Company's foreign subsidiary in Argentina is party to U.S. dollar denominated lease contracts which the Company has determined contain embedded derivatives. As such, the Company bifurcates the embedded derivatives features of the lease contracts and values these features as foreign currency derivatives.

Derivative Valuation and Settlements

The Company's derivatives as of December 31, 2010 and 2009 were as follows (amounts in thousands):

		December 31, 2010
		Designated as hedging instruments				Not designated as hedging instruments
Derivative contracts:		Foreign Exchange		Foreign Exchange		Foreign Exchange		Foreign Exchange		Leases
Derivative classification:		Cash Flow			Net Investment	Option and Forward Contracts		Fair Value		Embedded Derivative

Fair value and location of derivative in
	the Consolidated Balance Sheet:
Prepaids and other current assets		$	10,602	$	-	$	-	$	783	$	-
Other long-term assets			2,081		-		-		-		-
Other current liabilities			(677)		-		-		(58)		(105)
Other long-term liabilities			(104)		-		-		-		(34)

Total fair value of derivatives, net		$	11,902	$	-	$	-	$	725	$	(139)

		December 31, 2009
		Designated as hedging instruments				Not designated as hedging instruments
Derivative contracts:		Foreign Exchange		Foreign Exchange		Foreign Exchange		Foreign Exchange		Leases
Derivative classification:		Cash Flow			Net Investment	Option and Forward Contracts		Fair Value		Embedded Derivative

Fair value and location of derivative in
	the Consolidated Balance Sheet:
Prepaids and other current assets		$	8,022	$	-	$	42	$	29	$	-
Other long-term assets			1,996		-		-		-		-
Other current liabilities			(1,884)		-		-		(137)		(139)
Other long-term liabilities			(30)		-		-		-		(230)

Total fair value of derivatives, net		$	8,104	$	-	$	42	$	(108)	$	(369)

The effect of derivative instruments on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2010 and 2009 were as follows (amounts in thousands):

		Year Ended December 31,
		2010				2009
		Designated as hedging instruments				Designated as hedging instruments
Derivative contracts:		Foreign Exchange		Foreign Exchange		Foreign Exchange		Foreign Exchange
Derivative classification:		Cash Flow		Net Investment		Cash Flow		Net Investment

Amount of gain or (loss) recognized in other
	comprehensive income - effective portion, net of tax:	$	8,513	$	-	$	14,427	$	(1,727)

Amount and location of net gain or (loss) reclassified
	from accumulated OCI to income - effective portion:
Revenue		$	9,817	$	-	$	(18,293)	$	-

Amount and location of net gain or (loss) reclassified
	from accumulated OCI to income - ineffective portion
	and amount excluded from effectiveness testing:
Other income (expense), net		$	-	$	-	$	-	$	-

		Year Ended December 31,
		2010						2009
		Not designated as hedging instruments						Not designated as hedging instruments
Derivative contracts:		Foreign Exchange				Leases			Foreign Exchange				Leases
Derivative classification:		Option and Forward Contracts		Fair Value		Embedded Derivative		Option and Forward Contracts		Fair Value		Embedded Derivative

Amount and location of net gain or
	(loss) recognized in the Consolidated
	Statement of Operations:
Cost of services		$	-	$	-	$	230	$	-	$	-	$	1,108
Other income (expense), net			(42)		3,693		-		(87)		(144)		-

FAIR VALUE

12 Months Ended

Dec. 31, 2010

FAIR VALUE [Abstract]

FAIR VALUE

(11) FAIR VALUE

The authoritative guidance for fair value measurements establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The following presents information as of December 31, 2010 of the Company's assets and liabilities required to be measured at fair value on a recurring basis, as well as the fair value hierarchy used to determine their fair value.

Accounts Receivable and Payable - The amounts recorded in the accompanying balance sheets approximate fair value because of their short-term nature.

Debt - The Company's debt consists primarily of the Company's Credit Agreement, which permits floating-rate borrowings based upon the current Prime Rate or LIBOR plus a credit spread as determined by the Company's leverage ratio calculation (as defined in the Credit Agreement). As of December 31, 2010, the Company had no borrowings outstanding under the Credit Agreement. During 2010, borrowings accrued interest at an outstanding average rate of 1.5% per annum; excluding unused commitment fees.

Derivatives - Net derivative assets (liabilities) measured at fair value on a recurring basis included the following (amounts in thousands):

The portfolio is valued using models based on market observable inputs, including both forward and spot foreign exchange rates, implied volatility, and counterparty credit risk, including the ability of each party to execute its obligations under the contract. As of December 31, 2010, credit risk did not materially change the fair value of the Company's foreign currency forward and option contracts.

The following is a summary of the Company's fair value measurements as of December 31, 2010 and 2009 (amounts in thousands):

As of December 31, 2010
		Fair Value Measurements Using
		Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs
		(Level 1)			(Level 2)		(Level 3)		At Fair Value
Cash flow hedges		$	-		$	11,902	$	-	$	11,902
Fair value hedges			-			725		-		725
Embedded derivatives			-			(139)		-		(139)
Option and Forward Contracts			-			-		-		-
	Total net derivative asset (liability)	$	-		$	12,488	$	-	$	12,488

As of December 31, 2009
		Fair Value Measurements Using
		Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs		Significant Unobservable Inputs
		(Level 1)			(Level 2)		(Level 3)		At Fair Value
Cash flow hedges		$		-	$	8,104	$	-	$	8,104
Fair value hedges			-			(108)		-		(108)
Embedded derivatives			-			(369)		-		(369)
Option and Forward Contracts			-			42		-		42
	Total net derivative asset (liability)	$	-		$	7,669	$	-	$	7,669

As of December 31, 2010
			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
Assets
	Money market investments		$	-	$	19,668	$	-
	Derivative instruments, net		$	-	$	12,488	$	-
		Total assets	$	-	$	32,156	$	-

Liabilities
	Deferred compensation plan liability		$	-	$	(3,781)	$	-
	Purchase price payable		$	-	$	-	$	(4,506)
		Total liabilities	$	-	$	(3,781)	$	(4,506)

As of December 31, 2009
			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
Assets
	Money market investments		$	-	$	-	$	-
	Derivative instruments, net		$	-	$	7,669	$	-
		Total assets	$	-	$	7,669	$	-

Liabilities
	Deferred compensation plan liability		$	-	$	(3,399)	$	-
		Total liabilities	$	-	$	(3,399)	$	-

Money Market Investments - The Company invests in various well-diversified money market funds which are managed by financial institutions. These money market funds are not publicly traded, but have historically been highly liquid. The value of the money market funds are determined by the banks based upon the funds' net asset values (“NAV”). All of the money market funds currently permit daily investments and redemptions at a $1.00 NAV.

Deferred Compensation Plan - The Company maintains a non-qualified deferred compensation plan structured as a Rabbi trust for certain eligible employees. Participants in the deferred compensation plan select from a menu of phantom investment options for their deferral dollars offered by the Company each year, which are based upon changes in value of complementary, defined market investments. The deferred compensation liability represents the combined values of market investments against which participant accounts are tracked.

- Definition

This element represents the disclosure related to the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods.

+ References+ Details

INCOME TAXES

12 Months Ended

Dec. 31, 2010

INCOME TAXES [Abstract]

INCOME TAXES

(12) INCOME TAXES

The sources of pre-tax accounting income are as follows (amounts in thousands):

			Year Ended December 31,
		2010		2009		2008
Domestic		$	19,891	$	34,791	$	23,113
Foreign			62,078		68,252		81,491
	Total	$	81,969	$	103,043	$	104,604

The components of the Company's Provision for income taxes are as follows (amounts in thousands):

				Year Ended December 31,
			2010		2009		2008
Current provision
	Federal		$	9,612	$	7,751	$	8,480
	State			1,391		(317)		933
	Foreign			20,458		13,977		17,104
Total current provision				31,461		21,411		26,517
Deferred provision (benefit)
	Federal			(128)		7,027		1,009
	State			(17)		460		331
	Foreign			(2,885)		(1,421)		(588)
		Total deferred provision (benefit)		(3,030)		6,066		752
		Total provision for income taxes	$	28,431	$	27,477	$	27,269

The following reconciles the Company's effective tax rate to the federal statutory rate (amounts in thousands):

				Year Ended December 31,
			2010		2009		2008
Income tax per U.S. federal statutory rate (35%)			$	28,689	$	36,084	$	36,611
	State income taxes, net of federal deduction			2,079		1,015		716
	Change in valuation allowances			5,645		(2,855)		(2,825)
	Foreign income taxes at different rates than the U.S.			(12,499)		(12,812)		(11,426)
	Foreign withholding taxes			989		3,402		2,501
	Increase to current/deferred tax assets due to
		implementation of tax planning strategies		(4,910)		-		-
	Losses in international markets without tax benefits			964		856		560
	Nondeductible compensation under Section 162(m)			1,002		1,162		175
	Liabilities for uncertain tax positions			(2,695)		401		(72)
	Permanent difference related to foreign exchange gains			(46)		(110)		(149)
	(Income)/losses of foreign branch operations			2,340		(78)		2,501
	Non-taxable earnings of minority interest			(603)		(434)		(863)
	Foreign dividend less foreign tax credits			5,344		-		-
	Increase in deferred tax liability - branch losses in UK			2,586		-		-
	Increase to deferred tax asset - change in state tax rate			(588)		-		-
	Other			134		846		(460)
Income tax per effective tax rate			$	28,431	$	27,477	$	27,269

The Company's deferred income tax assets and liabilities are summarized as follows (amounts in thousands):

			Year Ended December 31,
			2010		2009
Deferred tax assets, gross
	Accrued workers compensation, deferred compensation
		and employee benefits	$	2,337	$	4,014
	Allowance for doubtful accounts, insurance and other accruals			8,402		6,258
	Depreciation and amortization			12,579		11,279
	Amortization of deferred rent liabilities			2,624		5,273
	Net operating losses			19,126		13,756
	Equity compensation			7,010		5,979
	Customer acquisition and deferred revenue accruals			1,905		3,071
	Federal and state tax credits, net			18,450		14,972
	Contract acquisition costs			241		-
	Other			5,431		4,555
		Total deferred tax assets, gross		78,105	$	69,157
	Valuation allowances			(22,636)		(20,363)
		Total deferred tax assets, net		55,469	$	48,794
Deferred tax liabilities
	Long-term lease obligations			(28)		(1,327)
	Unrealized gains on derivatives			(4,810)		(2,851)
	Contract acquisition costs			-		(505)
	Future losses in UK			(4,554)		(1,967)
	Other			(5,157)		(2,851)
		Total deferred tax liabilities		(14,549)		(9,501)
		Net deferred tax assets	$	40,920	$	39,293

The Company periodically reviews the likelihood that deferred tax assets will be realized in future tax periods under the “more likely than not” criteria. In making this judgment, the Company evaluates all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is required.

As of December 31, 2010 the Company had approximately $22.0 million of net deferred tax assets in the U.S. and $19.0 million of net deferred tax assets related to certain international locations whose recoverability is dependent upon their future profitability. As of December 31, 2010 the deferred tax valuation allowance was $22.6 million and related primarily to tax losses in foreign jurisdictions and U.S. federal and state tax credits which do not meet the “more-likely-than-not” standard under current accounting guidance. The utilization of these state tax credits are subject to numerous factors including various expiration dates, generation of future taxable income over extended periods of time and state income tax apportionment factors which are subject to change.

When there is a change in judgment concerning the recovery of deferred tax assets in future periods, a valuation allowance is recorded into earnings during the quarter in which the change in judgment occurred. In 2010, the Company made adjustments to its deferred tax assets and corresponding valuation allowances. The net change to the valuation allowance of $6.6 million was due to a $3.7 million valuation allowance for its deferred tax assets in Spain that do not meet the “more-likely-than-not” standard and a $2.1 million increase in the United States primarily for valuation of executive compensation that may be limited for tax purposes in the future and certain state credits and NOLs that do not meet the “more-likely-than-not” standard; and a $0.8 million increase in the valuation allowance in certain other foreign jurisdictions.

On February 20, 2011 the Company received notice of an adverse decision by the Canadian Revenue Agency (“CRA”) in regards to the Company's attempt to recover taxes paid to Canada with respect to the years 2001 and 2002. In 2005, through the Competent Authority process, the Company sought relief under the United States-Canada Income Tax Convention for avoidance of double taxation arising from adjustments to the taxable income originally reported to these jurisdictions. At December 31, 2010, the Company continued to believe that collection of the income tax receivable was more likely than not. Upon receipt of the notification, the Company can no longer conclude that the collection of this income tax receivable is more likely than not. Consistent with accounting for tax positions that no longer meet the recognition criteria, the Company expects to reverse the income tax receivable of $8.9 million (which includes $3.9 million of accumulated foreign exchange gains since the position was first established in 2005) through income tax expense in the first quarter of 2011. The Company continues to believe in the merits of its claim for which it sought relief from double taxation thru the Competent Authority process. As such, the Company is exploring and intends to vigorously pursue any available remedies in response to the CRA decision.

As of December 31, 2010, after consideration of all tax loss and tax credit carry back opportunities, the Company had net foreign tax loss carry forwards expiring as follows (amounts in thousands):

2011		$	-
2012			-
2013			-
2014			7,073
2015			340
No expiration			29,480
	Total	$	36,893

As of December 31, 2010, domestically, the Company had a state tax credit carry-forwards of $9.4 million that if unused will expire between 2011 and 2023.

As of December 31, 2010 the cumulative amount of foreign earnings considered permanently invested outside the U.S. was $209.0 million. Those earnings do not include earnings from certain subsidiaries which the Company intends to repatriate to the U.S. or are otherwise considered available for distribution to the U.S. Accordingly, no provision for U.S. federal or state income taxes or foreign withholding taxes has been provided on these undistributed earnings. If these earnings become taxable in the U.S, the Company would be subject to incremental tax expense, after any applicable foreign tax credit, and foreign withholding tax expense.

The Company has been granted “Tax Holidays” as an incentive to attract foreign investment by the governments of the Philippines and Costa Rica. Generally, a Tax Holiday is an agreement between the Company and a foreign government under which the Company receives certain tax benefits in that country, such as exemption from taxation on profits derived from export-related activities. In the Philippines, the Company has been granted 14 separate agreements with an initial period of four years and additional periods for varying years, expiring at various times between 2011 and 2013. The aggregate effect on income tax expense for the years ended December 31, 2010, 2009 and 2008 was approximately $7.6 million, $8.9 million and $9.2 million, respectively, which had a favorable impact on net income per share of $0.13, $0.14 and $0.14, respectively.

Accounting for Uncertainty in Income Taxes

In accordance with ASC 740, the Company has recorded a reserve for uncertain tax positions. The total amount of interest and penalties recognized in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) as of December 31, 2010 was approximately $0.1 million and the total amount of interest and penalties recognized in the accompanying Consolidated Balance Sheets as of December 31, 2010 was approximately $0.1 million.

The Company had a reserve for uncertain tax benefits, on a net basis, of $9.0 million and $19.1 million for the years ended December 31, 2010 and 2009, respectively. The liability for uncertain tax positions was reduced by $3.8 million for tax positions that were resolved favorably or expired. It was also reduced by $9.2 million on account of new information used in the measurement of an unrecognized tax benefit. It is also reasonably possible that a substantial change in the amount of unrecognized tax benefits will occur in 2011. The Company anticipates it is reasonably possible that it will reach a settlement with the IRS concerning disallowed deductions on the Company's 2002 tax year. The amount of unrecognized tax benefits associated with this issue is $8.1 million. The range of settlements, which would positively affect income tax expense in 2011, is between $2.1 million and $8.1 million. If the Company recognized these remaining unrecorded tax benefits, approximately $9.0 million of tax benefits and tax related interest and penalties accrued, such recognition would favorably impact the effective tax rate.

The tabular reconciliation of the reserve for uncertain tax benefits on a gross basis for the year ended December 31, 2010 is presented below (amounts in thousands):

Balance as of December 31, 2007		$	21,932
	Additions for current year tax positions		613
	Reductions in prior year tax positions		(627)
Balance as of December 31, 2008		$	21,918
	Additions for current year tax positions		352
	Reductions in prior year tax positions		(238)
Balance as of December 31, 2009		$	22,032
	Additions for current year tax positions		28
	Reductions in prior year tax positions		(13,025)
Balance as of December 31, 2010		$	9,035

The Company and its domestic and foreign subsidiaries (including Percepta LLC and its domestic and foreign subsidiaries) file income tax returns as required in the U.S. federal jurisdiction and various state and foreign jurisdictions. The following table presents the major tax jurisdictions and tax years that are open as of December 31, 2010 and subject to examination by the respective tax authorities:

Tax Jurisdiction	Tax Year Ended
United States	2002 to 2004 and 2007 to present
Argentina	2005 to present
Australia	2006 to present
Brazil	2002 to present
Canada	2003 to present
Mexico	2005 to present
Philippines	2008 to present
Spain	2006 to present

The Company's U.S. income tax returns filed for the tax years ending December 31, 2002 through 2004, and 2007 to present, remain open tax years subject to IRS audit. The Company has been notified of the intent to audit, or is currently under audit of income taxes in the Philippines. Although the outcome of examinations by taxing authorities are always uncertain, it is the opinion of management that the resolution of these audits will not have a material effect in the Company's Consolidated Financial Statements.

RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES

12 Months Ended

Dec. 31, 2010

RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES [Abstract]

RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES

(13) RESTRUCTURING CHARGES AND IMPAIRMENT LOSSES

Restructuring Charges

During the year ended December 31, 2010, the Company undertook a number of restructuring activities primarily associated with reductions in the Company's capacity and workforce in both the North American BPO and International BPO segments to better align the capacity and workforce with current business needs.

A summary of the expenses recorded in Restructuring, net in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, 2010, 2009 and 2008, respectively, is as follows (amounts in thousands):

				Year Ended December 31,
				2010		2009		2008
North American BPO
	Reduction in force		$	7,891	$	4,008	$	744
	Facility exit charges			320		408		2,385
	Changes in estimates			(5)		(1,028)		(182)
		Total	$	8,206	$	3,388	$	2,947

				Year Ended December 31,
				2010		2009		2008
International BPO
	Reduction in force		$	5,189	$	1,516	$	3,169
	Facility exit charges			89		168		-
	Changes in estimates			(8)		-		-
		Total	$	5,270	$	1,684	$	3,169

				Year Ended December 31,
				2010		2009		2008
Database Marketing and Consulting
	Reduction in force		$	-	$	-	$	8
	Changes in estimates			-		-		(65)
		Total	$	-	$	0	$	(57)

A rollforward of the activity in the Company's restructuring accruals for the years ended December 31, 2010 and 2009, respectively, is as follows (amounts in thousands):

			Closure of Delivery Centers		Reduction in Force		Total

Balance as of December 31, 2008		$	2,113	$	-	$	2,113
	Expense		576		5,524		6,100
	Payments		(1,286)		(5,511)		(6,797)
	Changes in estimates		(1,028)		-		(1,028)
Balance as of December 31, 2009			375		13		388
	Expense		409		13,080		13,489
	Payments		(89)		(4,813)		(4,902)
	Changes in estimates		-		(13)		(13)
Balance as of December 31, 2010		$	695	$	8,267	$	8,962

During 2010 and 2009, the Company determined that $13 thousand and $1.0 million, respectively, of previously recorded restructuring expenses would not be paid and these amounts were reversed against restructuring expense and included as a revision of prior estimates in the table above.

The remaining reduction in force accrual is expected to be paid during 2011, with the remaining accrual for the closure of delivery centers to be paid or extinguished no later than 2012.

Impairment Losses

The Company evaluated the recoverability of its leasehold improvement assets at certain delivery centers. An asset is considered to be impaired when the anticipated undiscounted future cash flows of an asset group are estimated to be less than the asset group's carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. During 2010, the Company recognized impairment losses related to leasehold improvement assets of $1.4 million in its North American BPO segment and $0.6 million in its International BPO segment.

During 2009, the Company recognized impairment losses of $2.8 million in its International BPO segment, related to the exiting of $2.0 million of certain delivery centers and an $0.8 million impairment loss based on the Company's evaluation of the recoverability of its leasehold improvement and other intangible assets. During 2009, the Company recognized impairment losses of $1.8 million in its North American BPO segment based on the Company's evaluation of the recoverability of its leasehold improvement assets.

During 2008, the Company recognized impairment losses of $1.8 million and $0.2 million in its North American BPO and International BPO segments, respectively, based on the Company's evaluation of the recoverability of its leasehold improvement assets.

INDEBTEDNESS

12 Months Ended

Dec. 31, 2010

INDEBTEDNESS [Abstract]

INDEBTEDNESS

(14) INDEBTEDNESS

Credit Facility

On October 1, 2010, the Company entered into a credit agreement (the “Credit Agreement”) with a syndicate of lenders led by KeyBank National Association, Wells Fargo Bank, National Association, Bank of America, N.A., BBVA Compass, and JPMorgan Chase Bank, N.A. The Credit Agreement amends and restates in its entirety the Company's prior credit facility entered into during 2006.

The Credit Agreement provides for a secured revolving credit facility that matures on September 30, 2015 with an initial maximum aggregate commitment of $350.0 million. At the Company's discretion, direct borrowing options under the Credit Agreement include (i) Eurodollar loans with one, two, three, and six month terms, and/or (ii) overnight base rate loans. The Credit Agreement also provides for a sub-limit for loans or letters of credit in both U.S. dollars and certain foreign currencies, with direct foreign subsidiary borrowing capabilities up to 50% of the total commitment amount. The Company may increase the maximum aggregate commitment under the Credit Agreement to $500.0 million if certain conditions are satisfied, including that the Company is not in default under the Credit Agreement at the time of the increase and that the Company obtains the commitment of the lenders participating in the increase.

Base rate loans bear interest at a rate equal to the greatest of (i) KeyBank National Association's prime rate, (ii) the federal funds effective rate plus 0.5% or (iii) the one month London Interbank Offered Rate (“LIBOR”) plus 1.25%, in each case adding a margin based upon the Company's leverage ratio. Eurodollar and alternate currency loans bear interest based upon LIBOR, as adjusted for prescribed bank reserves, plus a margin based upon the Company's leverage ratio. Letter of credit fees are 0.125% of the stated amount of the letter of credit on the date of issuance, renewal or amendment, plus an annual fee equal to the borrowing margin for Eurodollar loans. Facility fees are payable to the Lenders in an amount equal to the unused portion of the credit facility and are based upon the Company's leverage ratio.

Indebtedness under the Credit Agreement is guaranteed by certain of the Company's present and future domestic subsidiaries. Indebtedness under the Credit Agreement and the related guarantees are secured by security interests (subject to permitted liens) in the U.S. accounts receivable and cash of the Company and certain of its domestic subsidiaries and may be secured by tangible assets of the Company and such domestic subsidiaries if borrowings by foreign subsidiaries exceed $50.0 million and the leverage ratio is greater than 2.50 to 1.00. The Company also pledged 65% of the voting stock and 100% of the non-voting stock of certain of the Company's material foreign subsidiaries and may pledge 65% of the voting stock and 100% of the non-voting stock of the Company's other foreign subsidiaries.

The Credit Agreement, which includes customary financial covenants, may be used for general corporate purposes, including working capital, purchases of treasury stock and acquisition financing. As of December 31, 2010, the Company was in compliance with all financial covenants. During 2010, 2009 and 2008, borrowings accrued interest at an average rate of approximately 1.5%, 1.2%, and 4.0% per annum, respectively; excluding unused commitment fees. The Company's daily average borrowings during 2010, 2009 and 2008 were $62.5 million, $74.3 million and $101.8 million, respectively. As of both December 31, 2010 and 2009, the Company had no outstanding borrowings under the Credit Agreement or the previous credit facility. Availability under the Credit Agreement was $345.4 million as of December 31, 2010, which represents the $350.0 million less $4.6 million in issued letters of credit. As of December 31, 2009, the availability under the credit facility was $220.2 million, which was $225.0 million less $4.8 million in issued letters of credit.

The Company has unsecured, uncommitted lines of credit to support working capital for a few foreign subsidiaries. As of December 31, 2010, only one loan was outstanding for approximately $0.6 million, which was included in Other current liabilities in the accompanying Consolidated Balance Sheets. The line of credit accrues interest at 6.0% per annum.

DEFERRED TRAINING REVENUE AND COSTS

12 Months Ended

Dec. 31, 2010

DEFERRED TRAINING REVENUE AND COSTS [Abstract]

DEFERRED TRAINING REVENUE AND COSTS

(15) DEFERRED TRAINING REVENUE AND COSTS

Deferred training revenue in the accompanying Consolidated Balance Sheets consist of the following (amounts in thousands):

		December 31,
		2010		2009
Deferred Training Revenue - Current		$	4,060	$	7,083
Deferred Training Revenue - Long-term			2,669		2,297
	Total Deferred Training Revenue	$	6,729	$	9,380

Activity for the Company's Deferred training revenue was as follows (amounts in thousands):

				Year Ended December 31,
			2010		2009		2008
Balance, beginning of year			$	9,380	$	15,308	$	12,662
	Add: Amounts deferred due to new business			7,711		17,853		20,961
	Less: Revenue recognized			(10,446)		(24,415)		(17,830)
		Net increase/(decrease) in deferred revenue		(2,735)		(6,562)		3,131
	Effect of foreign currency			84		634		(485)
Balance, end of year			$	6,729	$	9,380	$	15,308

Deferred training costs in the accompanying Consolidated Balance Sheets consist of the following (amounts in thousands):

		December 31,
		2010		2009
Deferred Training Costs - Current		$	1,135	$	2,800
Deferred Training Costs - Long-term			586		779
	Total Deferred Training Costs	$	1,720	$	3,579

Activity for the Company's Deferred training costs was as follows (amounts in thousands):

				Year Ended December 31,
			2010		2009		2008
Balance, beginning of year			$	3,579	$	6,559	$	5,327
	Add: Amounts deferred due to new business			2,188		7,180		8,916
	Less: Recognized expense			(4,067)		(10,119)		(7,452)
		Net increase/(decrease) in deferred costs		(1,879)		(2,939)		1,464
	Effect of foreign currency			20		(41)		(232)
Balance, end of year			$	1,720	$	3,579	$	6,559

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2010

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

(16) COMMITMENTS AND CONTINGENCIES

Letters of Credit

As of December 31, 2010, outstanding letters of credit and other performance guarantees totaled approximately $5.5 million, which primarily guarantee workers' compensation and other insurance-related obligations.

Guarantees

The Company's Credit Facility is guaranteed by certain of the Company's domestic subsidiaries.

On March 31, 2010, the Company sold a corporate aircraft that was financed under a synthetic operating lease. Accordingly, the Company elected to exercise its purchase option rights under the lease for a specified amount. Simultaneous with the purchase, the Company sold the aircraft to an unrelated third-party. The proceeds from the aircraft sale were used to satisfy the lease obligations and other sales-related expenses, with the Company realizing a net gain of approximately $137,000, which was recorded in Other income (expense), net in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) during 2010.

Legal Proceedings

From time to time, we have been involved in claims and lawsuits, both as plaintiff and defendant, which arise in the ordinary course of business. Accruals for claims or lawsuits have been provided for to the extent that losses are deemed both probable and estimable. Although the ultimate outcome of these claims or lawsuits cannot be ascertained, on the basis of present information and advice received from counsel, we believe that the disposition or ultimate resolution of such claims or lawsuits will not have a material adverse effect on our financial position, cash flows or results of operations.

Securities Class Action

On January 25, 2008, a class action lawsuit was filed in the United States District Court for the Southern District of New York entitled Beasley v. TeleTech Holdings, Inc., et al. against TeleTech, certain current directors and officers and others alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act, Section 10(b) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder and Section 20(a) of the Securities Exchange Act. The complaint alleged, among other things, false and misleading statements in the Registration Statement and Prospectus in connection with (i) a March 2007 secondary offering of common stock and (ii) various disclosures made and periodic reports filed by the Company between February 8, 2007 and November 8, 2007. On February 25, 2008, a second nearly identical class action complaint, entitled Brown v. TeleTech Holdings, Inc., et al., was filed in the same court. On May 19, 2008, the actions described above were consolidated under the caption In re: TeleTech Litigation and lead plaintiff and lead counsel were approved. On October 21, 2009, the Company and the other defendants named executed a stipulation of settlement with the lead plaintiffs to settle the consolidated class action lawsuit. On June 11, 2010, the United States District Court for the Southern District of New York issued final approval of the settlement. The Company paid $225,000 of the total settlement amount, which had been included in Other accrued expenses in the accompanying Consolidated Balance Sheets at December 31, 2009; the remaining settlement amount was covered by the Company's insurance carriers.

Derivative Action

On July 28, 2008, a shareholder derivative action was filed in the Court of Chancery, State of Delaware, entitled Susan M. Gregory v. Kenneth D. Tuchman, et al., against certain of TeleTech's former and current officers and directors alleging, among other things, that the individual defendants breached their fiduciary duties and were unjustly enriched in connection with: (i) equity grants made in excess of plan limits; and (ii) manipulating the grant dates of stock option grants from 1999 through 2008. TeleTech was named solely as a nominal defendant against whom no recovery is sought. On October 26, 2009, the Company and other defendants in the derivative action executed a stipulation of settlement with the lead plaintiffs to settle the derivative action. On January 5, 2010, the Court of Chancery, State of Delaware issued final approval of the settlement. The total amount paid under the approved settlement was covered by the Company's insurance carriers.

LEASES

12 Months Ended

Dec. 31, 2010

LEASES [Abstract]

LEASES

(17) LEASES

The Company has various operating leases primarily for equipment, delivery centers and office space, which generally contain renewal options. Rent expense under operating leases was approximately $30.2 million, $29.7 million and $31.7 million for the years ended December 31, 2010, 2009 and 2008, respectively.

In 2008, the Company sub-leased one of its delivery centers to a third party for the remaining term of the original lease. The sub-lease began on January 1, 2009 and rental income received over the term of the lease will be recognized on a straight-line basis. Future minimum sub-lease rental receipts are shown in the table below.

The future minimum rental payments and receipts required under non-cancelable operating leases as of December 31, 2010 are as follows (amounts in thousands):

			Operating Leases		Sub-Lease Income
2011		$	25,927	$	1,752
2012			18,531		1,823
2013			12,131		1,823
2014			7,242		1,823
2015			3,372		2,234
Thereafter			7,392		12,083
	Total	$	74,595	$	21,538

In addition, the Company records operating lease expense on a straight-line basis over the life of the lease as described in Note 1. The deferred lease liability as of December 31, 2010 and 2009 was $10.4 million and $14.0 million, respectively.

The future minimum rental payments for capital leases as of December 31, 2010 are as follows (amounts in thousands) and the current portion and the long-term portion of the obligation are included in the Other current liabilities in the accompanying Consolidated Balance Sheets:

			Capital Leases
2011		$	1,532
2012			403
	Total		1,935
Less amount representing interest			(126)
	Present value of minimum lease payments		1,809
Less current portion			(1,417)
	Long-term portion	$	392

The Company has two delivery centers classified as capital leases at December 31, 2010. The amounts applicable to these leases as included in property, plant and equipment are as follows (amounts in thousands):

		December 31,
	2010		2009
Historical cost	$	12,181	$	12,181
Less: Accumulated depreciation		(11,871)		(10,435)
	$	310	$	1,746

Asset Retirement Obligations

The Company records asset retirement obligations for its delivery center leases. Capitalized costs related to asset retirement obligations are included in Other long-term assets in the accompanying Consolidated Balance Sheets while the asset retirement obligation (“ARO”) liability is included in Other long-term liabilities in the accompanying Consolidated Balance Sheets. Following is a summary of the amounts recorded (amounts in thousands):

		Balance at December 31, 2009		Additions and Modifications		Accretion		Settlements		Balance at December 31, 2010

ARO liability at inception	$	1,798	$	406	$	-	$	(559)	$	1,645
Accumulated accretion		805		-	$	82	$	(232)		655
	$	2,603	$	406	$	82	$	(791)	$	2,300


		Balance at December 31, 2008		Additions and Modifications		Accretion		Settlements		Balance at December 31, 2009

ARO liability at inception	$	1,788	$	183	$	-	$	(173)	$	1,798
Accumulated accretion		702		8		90		5		805
	$	2,490	$	191	$	90	$	(168)	$	2,603

Increases to ARO result from a new lease agreement or modifications on an ARO from a preexisting lease agreement. Modifications to ARO liabilities and accumulated accretion occur when lease agreements are amended or when assumptions change, such as the rate of inflation. Modifications are accounted for prospectively as changes in estimates. Settlements occur when leased premises are vacated and the actual cost of restoration is paid. Differences between the actual costs of restoration and the balance recorded as ARO liabilities are recognized as gains or losses in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss).

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2010

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

(18) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes Accumulated other comprehensive income (loss) for the periods indicated (amounts in thousands):

		Translation Adjustments
		Foreign Currency Translation Adjustments		Net Investment Hedges		Cash Flow Hedges		Other		Totals

Accumulated other comprehensive
	income (loss) at December 31, 2007	$	36,683	$	-	$	21,417	$	(212)	$	57,888

Gross changes			(48,919)		507		(64,171)		100		(112,483)
Tax			-		-		21,574		-		21,574
Other comprehensive income (loss), net of tax			(48,919)		507		(42,597)		100		(90,909)
Accumulated other comprehensive
	income (loss) at December 31, 2008		(12,236)		507		(21,180)		(112)		(33,021)

Gross changes			19,613		(1,727)		47,072		-		64,958
Tax			-		-		(21,424)		-		(21,424)
Other comprehensive income (loss), net of tax			19,613		(1,727)		25,648		-		43,534
Accumulated other comprehensive
	income (loss) at December 31, 2009		7,377		(1,220)		4,468		(112)		10,513

Gross changes			7,990		-		4,583		(792)		11,781
Tax			-		-		(1,960)		-		(1,960)
Other comprehensive income (loss), net of tax			7,990		-		2,623		(792)		9,821
Accumulated other comprehensive
	income (loss) at December 31, 2010	$	15,367	$	(1,220)	$	7,091	$	(904)	$	20,334

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

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NET INCOME PER SHARE

12 Months Ended

Dec. 31, 2010

NET INCOME PER SHARE [Abstract]

NET INCOME PER SHARE

(19) NET INCOME PER SHARE

The following table sets forth the computation of basic and diluted net income per share for the periods indicated (amounts in thousands):

				Year Ended December 31,
				2010	2009	2008

Shares used in basic earnings per share calculation				60,361	62,891	68,208
	Effect of dilutive securities:
		Stock options		874	814	1,370
		Restricted stock units		557	533	-
			Total effects of dilutive securities	1,431	1,347	1,370
Shares used in dilutive earnings per share calculation				61,792	64,238	69,578

For the years ended December 31, 2010, 2009 and 2008, 0.1 million, 0.4 million and 0.3 million, respectively, of options to purchase shares of common stock were outstanding but not included in the computation of diluted net income per share because the exercise price exceeded the value of the shares and the effect would have been anti-dilutive. For the years ended December 31, 2010, 2009 and 2008, restricted stock units of 1.1 million, 0.8 million, and 1.1 million, respectively, were outstanding but not included in the computation of diluted net income per share because the effect would have been anti-dilutive. For the years ended December 31, 2010, 2009 and 2008, restricted stock units that vest based on the Company achieving specified operating income performance targets, of 0.1 million, 0.1 million and 0.4 million, respectively, were outstanding but not included in the computation of diluted net income per share because they were not determined to be contingently issuable.

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2010

RELATED PARTY TRANSACTIONS

(22) RELATED PARTY TRANSACTIONS

The Company has entered into agreements under which Avion, LLC (“Avion”) and AirMax, LLC (“AirMax”) provide certain aviation flight services as requested by the Company. Such services include the use of an aircraft and flight crew. Kenneth D. Tuchman, Chairman and Chief Executive Officer of the Company, has a direct 100% beneficial ownership interest in Avion and had an indirect interest in AirMax during 2008. During 2010, 2009 and 2008, the Company paid $1.5 million, $0.6 million and $0.7 million, respectively, to Avion for services provided to the Company. During 2010, 2009 and 2008, the Company paid $0.9 million, $1.1 million and $1.7 million, respectively, to AirMax for services provided to the Company. There were no amounts outstanding to either Avion or AirMax as of December 31, 2010. The Audit Committee of the Board of Directors reviews these transactions annually and has determined that the fees charged by Avion and AirMax are at fair market value.

- Definition

This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References+ Details

QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2010

QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract]

QUARTERLY FINANCIAL DATA (UNAUDITED)

(24) QUARTERLY FINANCIAL DATA (UNAUDITED)

The following tables present certain quarterly financial data for the year ended December 31, 2010 (amounts in thousands except per share amounts).

				First Quarter		Second Quarter		Third Quarter		Fourth Quarter

Revenue				$	271,526	$	271,927	$	271,005	$	280,448
Cost of services					194,618		198,194		193,996		202,889
Selling, general and administrative					43,408		39,741		40,572		42,091
Depreciation and amortization					12,724		12,946		12,452		12,096
Restructuring charges, net					1,469		1,304		3,579		7,124
Impairment losses					-		679		327		952
	Income from operations				19,307		19,063		20,079		15,296
		Other income (expense)			(211)		332		7,295		808
		Provision for income taxes			(5,054)		(5,071)		(7,586)		(10,720)
		Non-controlling interest			(755)		(922)		(1,118)		(869)
			Net income attributable to TeleTech shareholders	$	13,287	$	13,402	$	18,670	$	4,515

Weighted average shares outstanding
	Basic				61,877		61,117		59,808		58,690
	Diluted				63,483		62,317		61,028		60,369

Net income per share attributable to TeleTech shareholders
	Basic			$	0.21	$	0.22	$	0.31	$	0.08
	Diluted			$	0.21	$	0.22	$	0.31	$	0.07

Included in Revenue for the first quarter is a $2.0 million reduction for disputed service delivery issues which occurred in 2009.

Included in Selling, general and administrative for the second and fourth quarters, respectively, is a decrease of $0.3 million and $1.1 million due to change in estimates relating to self-insurance liabilities.

Included in Other income (expense) for the third quarter is a $5.9 million gain related to the settlement of a Newgen legal claim.

Included in Provision for income taxes for the third quarter is a $2.3 million expense related to the gain described above.

Included in the Provision for income taxes for the fourth quarter is a $5.6 million expense related repatriation of foreign earnings previously considered permanently invested outside the U.S., an increase of $2.5 million in the U.S. deferred tax liability related to foreign tax assets that can no longer offset taxable income in more than one jurisdiction, an increase of $6.6 million in the deferred tax valuation allowance of which $3.7 million is related to certain European markets, and a $2.3 million expense related to our legal settlement included in Other income (expense) and $0.7 million in other items, offset by a $4.0 million benefit related to foreign tax planning strategies associated with the International operations.

The following tables present certain quarterly financial data for the year ended December 31, 2009 (amounts in thousands except per share amounts).

				First Quarter		Second Quarter		Third Quarter		Fourth Quarter

Revenue				$	304,030	$	301,512	$	281,524	$	280,849
Cost of services					218,842		213,049		194,609		194,017
Selling, general and administrative					48,515		44,981		42,565		43,978
Depreciation and amortization					14,062		13,808		15,664		13,457
Restructuring charges, net					303		4,008		703		58
Impairment losses					1,967		2,620		-		-
	Income from operations				20,341		23,046		27,983		29,339
		Other income (expense)			726		399		445		764
		Provision for income taxes			(5,180)		(6,328)		(6,971)		(8,998)
		Non-controlling interest			(824)		(987)		(935)		(1,066)
			Net income attributable to TeleTech shareholders	$	15,063	$	16,130	$	20,522	$	20,039

Weighted average shares outstanding
	Basic				63,908		63,098		62,159		62,415
	Diluted				64,300		64,175		63,832		64,243

Net income per share attributable to TeleTech shareholders
	Basic			$	0.24	$	0.26	$	0.33	$	0.32
	Diluted			$	0.23	$	0.25	$	0.32	$	0.31

Included in Cost of services during the fourth quarter is a reduction in expense of $3.0 million relating to grant reimbursement.

Included in Selling, general and administrative for the second and fourth quarters, respectively, is a decrease of $1.3 million and $2.3 million due to change in estimates relating to self-insurance liabilities.

- Definition

This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document.

+ References+ Details

Consolidated Statements of Cash Flows (Parentheticals) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010
Cash flows from investing activities [Abstract_87]
Acquisition of PRG, net of cash acquired	$ 2.2