Information Services (III) 10-Q 9 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Document and Entity Information
Entity Registrant Name	Information Services Group Inc.
Entity Central Index Key	1,371,489
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		35,379,126
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 17,976	$ 17,835
Accounts and unbilled receivables, net of allowance of $298 and $415, respectively	47,402	49,484
Deferred tax asset	1,948	2,109
Prepaid expense and other current assets	3,021	2,066
Total current assets	70,347	71,494
Restricted cash	342	394
Furniture, fixtures and equipment, net	3,134	3,021
Goodwill	38,600	37,286
Intangible assets, net	13,740	13,860
Other assets	4,478	4,704
Total assets	130,641	130,759
Current liabilities
Accounts payable	8,614	6,700
Current maturities of long-term debt	2,250	2,250
Deferred revenue	4,729	5,154
Accrued expenses	14,527	17,076
Total current liabilities	30,120	31,180
Long-term debt, net of current maturities	47,215	47,947
Other liabilities	5,475	4,521
Total liabilities	$ 82,810	$ 83,648
Commitments and contingencies (Note 7)
Redeemable noncontrolling interest	$ 1,006	$ 939
Stockholders' equity
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued
Common stock, $.001 par value, 100,000 shares authorized; 38,003 shares issued and 37,435 outstanding at March 31, 2016 and 37,977 shares issued and 37,219 outstanding at December 31, 2015	$ 38	$ 38
Additional paid-in-capital	204,657	204,904
Treasury stock (568 and 758 common shares, respectively, at cost)	(2,090)	(3,053)
Accumulated other comprehensive loss	(5,902)	(6,538)
Accumulated deficit	(149,878)	(149,179)
Total stockholders' equity	46,825	46,172
Total liabilities, redeemable noncontrolling interest and stockholders’ equity	$ 130,641	$ 130,759

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowances (in dollars)	$ 298	$ 415
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	38,003	37,977
Common stock, shares outstanding	37,435	37,219
Treasury stock, shares	568	758

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Revenues	$ 49,929	$ 50,539
Operating expenses
Direct costs and expenses for advisors	31,368	30,438
Selling, general and administrative	16,711	16,410
Depreciation and amortization	1,718	1,718
Operating income	132	1,973
Interest income	22	2
Interest expense	(428)	(498)
Foreign currency transaction (loss) gain	(506)	374
(Loss) income before taxes	(780)	1,851
Income tax (benefit) provision	(129)	944
Net (loss) income	(651)	907
Net income attributable to noncontrolling interest	48	54
Net (loss) income attributable to ISG	$ (699)	$ 853
Weighted average shares outstanding:
Basic (in shares)	37,340	37,032
Diluted (in shares)	37,340	38,490
(Loss) earnings per share attributable to ISG:
Basic (in dollars per share)	$ (0.02)	$ 0.02
Diluted (in dollars per share)	$ (0.02)	$ 0.02
Comprehensive loss:
Net (loss) income	$ (651)	$ 907
Foreign currency translation, net of tax (expense) benefit of $(390) and $945	636	(1,439)
Comprehensive loss	(15)	(532)
Comprehensive income attributable to noncontrolling interest	48	54
Comprehensive loss attributable to ISG	$ (63)	$ (586)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Foreign currency translation, net of tax (expense) benefit	$ (390)	$ 945

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net (loss) income	$ (651)	$ 907
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation expense	443	439
Amortization of intangibles	1,275	1,279
Debt issuance costs	198
Tax expense (benefit) from stock issuances	9	(193)
Amortization of deferred financing costs	38	38
Stock-based compensation	1,464	902
Change in fair value of contingent consideration	(35)
Changes in accounts receivable allowance	(93)	9
Deferred tax (benefit) provision	(500)	173
Loss on disposal of fixed assets	1	1
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	3,426	(1,432)
Prepaid expense and other current assets	(1,010)	(1,610)
Accounts payable	1,863	(1,046)
Deferred revenue	(975)	(84)
Accrued expenses	(3,191)	(1,579)
Net cash provided by (used in) operating activities	2,262	(2,196)
Cash flows from investing activities
Acquisitions net of cash acquired	(444)
Restricted cash	53	39
Purchase of furniture, fixtures and equipment	(583)	(290)
Net cash used in investing activities	(974)	(251)
Cash flows from financing activities
Principal payments on borrowings	(562)	(844)
Proceeds from issuance of ESPP shares	125	125
Payment of contingent consideration	(100)
Dividend paid		(5,189)
Debt issuance costs	9
Tax (expense) benefit from stock issuances	(9)	193
Equity securities repurchased	(945)	(978)
Net cash used in financing activities	(1,482)	(6,693)
Effect of exchange rate changes on cash	335	(1,312)
Net increase (decrease) in cash and cash equivalents	141	(10,452)
Cash and cash equivalents, beginning of period	17,835	27,662
Cash and cash equivalents, end of period	17,976	17,210
Noncash investing and financing activities:
Issuance of treasury stock for vested restricted stock awards and SARs	$ 1,753	$ 2,571

DESCRIPTION OF ORGANIZATION AND

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	3 Months Ended
	Mar. 31, 2016
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	NOTE 1—DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Information Services Group, Inc. (the “Company”) was founded in 2006 with the strategic vision to become a high-growth, leading provider of information-based advisory services. In 2007, we consummated our initial public offering and completed the acquisition of TPI Advisory Services Americas, Inc. (“TPI”). The Company is a leading technology insights, market intelligence and advisory services company serving more than 500 clients around the world to help them achieve operational excellence. Based in Stamford, Connecticut, the Company has more than 1,000 employees and operates in 21 countries.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2016
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 2—BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements as of March 31, 2016 and for the three months ended March 31, 2016 and 2015, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are considered necessary for a fair statement of the financial position of the Company as of March 31, 2016, the results of operations for the three months ended March 31, 2016 and 2015 and the cash flows for the three months ended March 31, 2016 and 2015. The condensed consolidated balance sheet as of December 31, 2015 has been derived from the Company’s audited consolidated financial statements. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Certain information and disclosures normally included in the notes to annual financial statements prepared in accordance with GAAP have been omitted from these interim financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the financial statements for the fiscal year ended December 31, 2015, which are included in the Company’s 2015 Form 10-K filed with the SEC.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. The complexity of the estimation process and issues related to the assumptions, risks and uncertainties inherent in the application of the proportional performance method of accounting affect the amounts of revenues, expenses, unbilled receivables and deferred revenue. Numerous internal and external factors can affect estimates. Estimates are also used for but not limited to: allowance for doubtful accounts, useful lives of furniture, fixtures and equipment, depreciation expense, contingent consideration, fair value assumptions in analyzing goodwill and intangible asset impairments, income taxes and deferred tax asset valuation, and the valuation of stock based compensation. Fair Value The carrying value of the Company’s cash and cash equivalents, restricted cash, receivables, accounts payable, other current liabilities, and accrued interest approximated their fair values at March 31, 2016 and December 31, 2015 due to the short-term nature of these instruments. Fair value is the price that would be received upon a sale of an asset or paid upon a transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). Market participants can use market data or assumptions in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. Under the fair-value hierarchy: · Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; · Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and · Level 3 measurements include those that are unobservable and of a highly subjective measure. The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated: Basis of Fair Value Measurements March 31, 2016 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ $ — $ — $ Total $ $ — $ — $ Liabilities: Contingent consideration (1) $ — $ — $ $ Foreign currency exchange forward contract (2) — — Long-term debt, including current portion — — $ — $ $ $ Basis of Fair Value Measurements December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ $ — $ — $ Total $ $ — $ — $ Liabilities: Contingent consideration (1) $ — $ — $ $ Long-term debt , including current portion — — $ — $ — $ $ (1) The short-term portion is included in “Accrued expenses.” The long-term portion is included in “Other liabilities.” (2) Included in “Accrued Expenses.” The Company’s contingent consideration liability was $ 4.8 million and $4.0 million at March 31, 2016 and December 31, 2015, respectively. The fair value measurement of this contingent consideration is classified within Level 3 of the fair value hierarchy and reflects the Company’s own assumptions in measuring fair values using the income approach. In developing these estimates, the Company considered certain performance projections, historical results, and industry trends. This amount was estimated through a valuation model that incorporated probability-weighted assumptions related to the achievement of these milestones and the likelihood of the Company making payments. These cash outflow projections have then been discounted using a rate ranging from 2.3% to 14.5% . In January 2016, the Company entered into four foreign exchange forward contracts to partially hedge exposure to changes in foreign exchange rates. There are three remaining foreign exchange forward contracts with a EUR notional of 7.7 million and USD notional of 8.4 million at March 31, 2016. These contracts are scheduled to settle at various times throughout 2016. These contracts are marked-to-market with the resulting gains and losses recognized in earnings offsetting the gains and losses on the non-functional currency denominated monetary assets and liabilities being hedged. These derivative contracts are not designated as hedges and are carried at fair value, with changes in the fair value recorded to foreign currency transaction (loss) gain in the condensed consolidated statement of comprehensive income. We recognized $0.4 million of unrealized loss in foreign currency transaction (loss) gain for the three months ended March 31, 2016. The foreign currency exchange contracts agreement is valued using broker quotations or market transactions in either the listed or over-the-counter markets. These derivative instruments are classified within level 2. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair values of debt have been estimated using a discounted cash flow analysis based on the Company's incremental borrowing rate for similar borrowing arrangements. The incremental borrowing rate used to discount future cash flows ranged from 2.56% to 2.75% . The Company also considered recent transactions of peer group companies for similar instruments with comparable terms and maturities as well as an analysis of current market conditions. The following table represents the change in the contingent consideration liability during the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 Beginning Balance $ $ Payment of contingent consideration — Acquisition — Change in fair value of contingent consideration — Accretion of contingent consideration Unrealized gain (loss) related to currency translation Ending Balance $ $ Recently Issued Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance that outlines a single comprehensive model for entities to use in accounting for revenue. Under the guidance, revenue is recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard is effective for public entities with annual and interim reporting periods beginning after December 15, 2016. On July 9, 2015, the FASB approved the deferral of the effective date of the new revenue guidance by one year to annual reporting periods beginning after December 15, 2017, with early adoption being permitted for annual periods beginning after December 15, 2016. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the guidance. The Company is currently assessing the effects this guidance may have on its consolidated financial statements, as well as the method of transition that the Company will use in adopting the new standard. In April 2015, the FASB issued guidance require the presentation of debt issuance costs in financial statements as a direct reduction of related debt liabilities with amortization of debt issuance costs reported as interest expense. Under current U.S. GAAP standards, debt issuance costs are reported as deferred charges (i.e., as an asset). In August 2015, the FASB clarified the guidance that debt issuance costs related to line-of-credit arrangements could continue to be presented as an asset and be subsequently amortized over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the arrangement. This guidance is effective for annual periods, and interim periods within those fiscal years, beginning after December 15, 2015 and is to be applied retrospectively upon adoption. The Company adopted the guidance effective January 1, 2016 and presented $0.8 million and $0.6 million, respectively, of debt issuance costs as a direct deduction to the debt liability as of March 31, 2016 and December 31, 2015. This change in accounting principle did not have an impact on the Company’s results of operations, cash flows or stockholders’ equity . In September 2015, the FASB issued updated guidance, which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Acquirers must recognize measurement-period adjustments during the period of resolution, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The updated guidance is effective for fiscal years beginning after December 15, 2015. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued an accounting standards update to simplify the presentation of deferred income taxes on the balance sheet. The update requires that all deferred tax assets and liabilities be classified as noncurrent. The current guidance that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not impacted by this update. The provisions of the new standard are effective beginning January 1, 2017, for annual and interim periods and early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its results of operations, but will result in a reclassification of current net deferred tax on its balance sheet in future years. Adoption of the guidance as of March 31, 2016 would result in a reclassification of current net deferred tax of $1.9 million and $2.1 million as of March 31, 2016 and December 31, 2015, respectively. In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The guidance requires the use of a modified retrospective approach. The Company is evaluating the impact of the guidance on its consolidated financial statements and related disclosures. In March 2016, the FASB issued amended guidance related to employee share-based payment accounting. The guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled and will be applied on a prospective basis. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, and can be applied retrospectively or prospectively. The guidance increases the amount companies can withhold to cover income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. The amended guidance will be effective for interim and annual periods beginning after December 15, 2016; early adoption is permitted if all provisions are adopted in the same period. The Company is evaluating the impact of the amended guidance on its consolidated financial statements and related disclosures.

ACQUISITION

ACQUISITION	3 Months Ended
	Mar. 31, 2016
ACQUISITION
ACQUISITION	NOTE 4—ACQUISITION Experton Group Acquisition On February 29, 2016 (the “Experton Acquisition Date”), the Company executed a Sale and Purchase Agreement for all the shares of Experton Group AG (“the Agreement”), and consummated the acquisition of all the shares of Experton Group AG (“Experton Group”), a German Corporation. Experton Group is a subscription-based research, advisory and benchmarking firm based in Munich, Germany. Under the terms of the Agreement, the Company acquired the shares for aggregate cash consideration of $0.6 million at closing and another $0.6 million of cash consideration to be paid one year from the Experton Acquisition Date. In addition, Experton Group is eligible to receive a minimum of $0 and a maximum of up to $1.2 million of earn-out payments for fiscal years 2016-2018, if certain revenue targets are met, payable in a combination of cash and stock consideration. The following table summarizes the consideration transferred to acquire Experton Group and the amounts of identified assets acquired and liabilities assumed as of the Experton Acquisition Date: The preliminary allocable purchase price consists of the following: Cash $ Post-completion installment payment Contingent consideration Total allocable purchase price $ Recognized amounts of identifiable assets acquired and liabilities assumed as of the Experton Acquisition Date: Cash $ Accounts receivable Other assets Intangible assets Deferred income tax liability Accounts payable Accrued expenses and other Net assets acquired $ Goodwill $ Costs associated with this acquisition are included in the selling, general and administrative expenses in the condensed consolidated statement of comprehensive income and totaled $0.1 million during the three months ended March 31, 2016. This business combination was accounted for under the acquisition method of accounting, and as such, the aggregate purchase price was allocated on a preliminary basis to the assets acquired and liabilities assumed based on estimated fair values as of the closing dates. The purchase price allocations will be finalized after the completion of the valuation of certain intangible assets and any adjustments to the preliminary purchase price allocations are not expected to have a material impact on the Company’s results of operations. Based on the valuation and other factors as described above, the purchase price assigned to intangible assets and the amortization period were as follows: Purchase Price Allocation Asset Life Amortizable intangible assets: Customer relationships $ years Total intangible assets $ The Condensed Consolidated Financial Statements include the results of Experton acquisition subsequent to the closing. Had the acquisition occurred as of January 1, 2015, the impact on the Company’s results of operations would not have been material.

NET (LOSS) INCOME PER COMMON SH

NET (LOSS) INCOME PER COMMON SHARE	3 Months Ended
	Mar. 31, 2016
NET (LOSS) INCOME PER COMMON SHARE
NET (LOSS) INCOME PER COMMON SHARE	NOTE 5—NET (LOSS) INCOME PER COMMON SHARE Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. The 50,000 contingently issuable shares related to the acquisition of CCI were excluded from basic and diluted earnings per share since the contingency has not been met as of the reporting period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would share in the net income of the Company. At March 31, 2016 and 2015, the effect of 34,374 and 68,748 stock appreciation rights have not been considered in the diluted earnings per share, since the market price of the stock was less than the exercise price during the period in the computation, respectively. In addition, 0.1 million restricted shares have not been considered in the diluted earnings per share calculation for the three months ended March 31, 2015, as the effect would be anti-dilutive. The following tables set forth the computation of basic and diluted earnings per share: Three Months Ended March 31, 2016 2015 Basic: Net (loss) income attributable to ISG $ $ Weighted average common shares (Loss) earnings per share attributable to ISG $ $ Diluted: Net (loss) income attributable to ISG $ $ Interest expense of convertible debt, net of tax — Net (loss) income, attributable to ISG, as adjusted $ $ Basic weighted average common shares Potential common shares — Diluted weighted average common shares Diluted (loss) earnings per share attributable to ISG $ $

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2016
INCOME TAXES
INCOME TAXES	NOTE 6—INCOME TAXES The Company’s effective tax rate for the three months ended March 31, 2016 was 16.5% based on pretax loss of $ 0.8 million. The Company’s effective tax rate for the quarter was lower than the statutory rate primarily due to year-to-date 2016 losses, non-deductible meals and entertainment expenses, and the impact of current quarter losses in jurisdictions where the Company is currently preclude from booking tax benefits. The effective tax rate was 51.0% for the three months ended March 31, 2015. The difference in the effective tax rate for the three months ended March 31, 2016 compared to the three months ended March 31, 2015 is primarily due to changes in pre-tax income by jurisdiction and the impact of permanent items on 2016 pre-tax losses. As of March 31, 2016, the Company had total unrecognized tax benefits of approximately $1.8 million all of which would impact the Company’s effective tax rate if recognized . The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax provision in its condensed consolidated statement of operations. As of March 31, 2016, the Company’s accrual of interest and penalties amounted to $0.5 million.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 7—COMMITMENTS AND CONTINGENCIES The Company is subject to contingencies which arise through the ordinary course of business. All material liabilities of which management were aware are properly reflected in the financial statements at March 31, 2016 and December 31, 2015. STA Consulting Contingent Consideration As of March 31, 2016, the Company has recorded a liability of $1.7 million representing the estimated fair value of contingent consideration related to the acquisition of STA Consulting and is classified as current and included in accrued expenses on the consolidated balance sheet. The Company paid the remaining contingent liability of $1.7 million in April 2016 related to 2015 performance. CCI Contingent Consideration As of March 31, 2016, the Company has recorded a liability of $1.3 million representing the estimated fair value of contingent consideration related to the acquisition of CCI Consulting, of which $0.7 million is classified as current and included in accrued expenses on the consolidated balance sheet . The Company paid $0.7 million in April 2016 related to 2015 performance and the remaining contingent liability is expected to be paid in the second quarter of 2017. Saugatuck Contingent Consideration As of March 31, 2016, the Company has recorded a liability of $0.9 million representing the estimated fair value of contingent consideration related to the acquisition of Saugatuck, of which $0.9 million is classified as long-term and included in other liabilities on the consolidated balance sheet. The Company paid $0.2 million in February 2016 related to 2015 performance. Experton Contingent Consideration As of March 31, 2016, the Company has recorded a liability of $0.9 million representing the estimated fair value of contingent consideration related to the acquisition of Experton, and is classified as long-term and included in other liabilities on the consolidated balance sheet.

GOODWILL

GOODWILL	3 Months Ended
	Mar. 31, 2016
GOODWILL
GOODWILL	NOTE 8—GOODWILL The changes in the carrying amount of goodwill for the period ended March 31, 2016 is as follows: Balance as of December 31, 2015 $ Acquisition Foreign currency impact Balance as of March 31, 2016 $

REDEEMABLE NONCONTROLLING INTER

REDEEMABLE NONCONTROLLING INTEREST	3 Months Ended
	Mar. 31, 2016
REDEEMABLE NONCONTROLLING INTEREST
REDEEMABLE NONCONTROLLING INTEREST	NOTE 9—REDEEMABLE NONCONTROLLING INTEREST The following provides a summary of activity in the noncontrolling interest account for the period ended March 31, 2016 relating to the acquisition of Convergent Technologies Partners: Balance as of December 31, 2015 $ Net income attributable to noncontrolling interest Accretion attributable to noncontrolling interest Balance as of March 31, 2016 $

SEGMENT AND GEOGRAPHICAL INFORM

SEGMENT AND GEOGRAPHICAL INFORMATION	3 Months Ended
	Mar. 31, 2016
SEGMENT AND GEOGRAPHICAL INFORMATION
SEGMENT AND GEOGRAPHICAL INFORMATION	NOTE 10— SEGMENT AND GEOGRAPHICAL INFORMATION The Company operates as one reportable segment consisting primarily of fact-based sourcing advisory services. The Company operates principally in the Americas, Europe and Asia Pacific. Geographical revenue information for the segment is as follows: Three Months Ended 2016 2015 Revenues Americas $ $ Europe Asia Pacific $ $ The segregation of revenues by geographic region is based upon the location of the legal entity performing the services. The Company does not measure or monitor gross profit or operating income by geography for the purposes of making operating decisions or allocating resources.

FINANCING ARRANGEMENTS AND LONG

FINANCING ARRANGEMENTS AND LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2016
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
FINANCING ARRANGEMENTS AND LONG-TERM DEBT	NOTE 11— FINANCING ARRANGEMENTS AND LONG-TERM DEBT On May 3, 2013 (the "Closing"), the Company entered into a five year senior secured credit facility (the "2013 Credit Agreement") comprised of a $45.0 million term loan facility and a $25.0 million revolving credit facility. On May 3, 2013, the Company borrowed $55.0 million under the 2013 Credit Agreement to refinance our existing debt under the Company's prior credit facility and to pay transaction costs. On May 11, 2015, the Company amended the 2013 Credit Agreement to reduce annual mandatory principal payments, lower borrowing costs and extend the term of the 2013 Credit Agreement by two years, resulting in a maturity date of May 3, 2020. As a result of the amendment, the Term Loan is repayable in twenty consecutive quarterly installments of $562,500 each, commencing June 30, 2015. In addition, the amendment also allows the Company to prepay up to $3.5 million of the subordinated convertible notes issued in connection with the Company's acquisition of Compass in 2011. On March 9, 2016, the Company amended the 2013 Credit Agreement. The amendment increases the revolving line of credit commitment by $15.0 million to a total of $40.0 million and allows the Company to maintain its maximum consolidated total leverage ratio at 3.00 to 1.00 through the first quarter of 2017. The material terms of the senior secured credit facility under the 2013 Credit Agreement are as follows: · The credit facility is secured by all of the equity interests owned by the Company, and its direct and indirect domestic subsidiaries and, subject to agreed exceptions, the Company's direct and indirect "first-tier" foreign subsidiaries and a perfected first priority security interest in all of the Company's and its direct and indirect domestic subsidiaries' tangible and intangible assets. · The Company's direct and indirect existing and future wholly-owned domestic subsidiaries serve as guarantors to the Company's obligations under the senior secured facility. · Mandatory repayments of term loans shall be required from (subject to agreed exceptions) (i) 100% of the proceeds from asset sales by the Company and its subsidiaries, (ii) 100% of the net proceeds from issuances of debt and equity by the Company and its subsidiaries, and (iii) 100% of the net proceeds from insurance recovery and condemnation events of the Company and its subsidiaries. · The senior secured credit facility contains a number of covenants that, among other things, place restrictions on matters customarily restricted in senior secured credit facilities, including restrictions on indebtedness (including guarantee obligations), liens, fundamental changes, sales or disposition of property or assets, investments (including loans, advances, guarantees and acquisitions), transaction with affiliates, dividends and other payments in respect of capital stock, optional payments and modifications of other material debt instruments, negative pledges and agreements restricting subsidiary distributions and changes in line of business. In addition, the Company is required to comply with a total leverage ratio and fixed charge coverage ratio. As of March 31, 2016, our maximum total leverage ratio was 3.00 to 1.00 and we were in compliance with all covenants contained in the 2013 Credit Agreement. · The senior secured credit facility contains customary events of default, including cross-default to other material agreements, judgment default and change of control. The Company is required under the 2013 Credit Agreement to establish a fixed or maximum interest rate covering a notional amount of not less than 50% of the aggregate outstanding indebtedness for borrowed money (other than the total revolving outstanding) for a period of three years from the closing date of our 2013 Credit Agreement. Subsequent to May 3, 2013, the Company entered into an agreement to cap the interest rate at 5% on the LIBOR component of its borrowings under the term loan facility until May 3, 2016. This interest rate cap is not designated for hedging or speculative purposes. The expense related to this interest rate cap was not material. As of March 31, 2016, the total principal outstanding under the term loan facility and revolving credit facility was $36.8 million and $10.0 million, respectively. Additional mandatory principal repayments totaling $1.7 million and $2.3 million will be due in 2016 and 2017, respectively. In the first quarter of 2016, the Company adopted accounting guidance requiring debt issuance costs related to recognized debt liabilities to be presented in the balance sheet as a direct reduction from the debt liability rather than an asset. Accordingly, as of March 31, 2016, approximately $0.8 million of deferred debt issuance costs were presented as a direct reduction within Long-Term Debt on the Company’s Consolidated Balance Sheets. Furthermore, the Company reclassified approximately $0.6 million of deferred debt issuance costs from Other Assets to Long-Term Debt as of December 31, 2015. Compass Convertible Notes On January 4, 2011, as part of the consideration for the acquisition of Compass, the Company issued an aggregate of $6.3 million in convertible notes to Compass (the "Notes"). The Notes mature on January 4, 2018 and interest is payable on the outstanding principal amount, computed daily, at the rate of 3.875% per annum on January 31 of each calendar year and on the seventh anniversary of the date of the Notes. The Notes were subject to transfer restrictions until January 31, 2013. If the price of the Company's common stock on the Nasdaq Global Market exceeds $4 per share for 60 consecutive trading days (the "Trigger Event"), a holder of the Notes may convert all (but not less than all) of the outstanding principal amount of the Notes into shares of our common stock at the rate of 1 share for every $4 in principal amount outstanding. After the Trigger Event, the Company may prepay all or any portion of the outstanding principal amount of the Notes by giving a holder 30 days written notice. On April 26, 2013, the Company settled a portion of the Notes. The payee agreed to accept from the Company an amount equal to $650,000 as satisfaction in full of all indebtedness of $1.1 million owing by the Company to such payee. As a result of this transaction, the Company recognized a gain of $0.5 million in the second quarter of 2013 representing the difference between the fair value of the consideration issued in the settlement transaction and the carrying value of the amounts due to the payee. This amount was recorded in Gain on Extinguishment of Debt in the accompanying consolidated statement of comprehensive income (loss). On November 14, 2013, the Company's lenders agreed to amend the 2013 Credit Agreement to allow the Company to prepay the entire outstanding principal amount of the CPIV S.A. Convertible Note ("CPIV Note") plus accrued interest and exclude the CPIV Note prepayment from the calculation of our consolidated fixed charge coverage ratio. On November 25, 2013, the Company settled a portion of the Notes and prepaid the CPIV Note and the payee agreed to accept from the Company an amount equal to the principal of $1.7 million plus accrued interest as satisfaction in full of all indebtedness owing by the Company to such payee. Therefore, there was no gain or loss recorded as a result of this transaction. On March 21, 2014, the Trigger Event occurred. As a result, a holder of the Notes may convert all (but not less than all) of the outstanding principal amount of the Notes into shares of our common stock at the rate of 1 share for every $4 in principal amount outstanding. In addition, ISG may elect to prepay all or any portion of the outstanding principal amount of the Notes by giving a holder 30 days written notice; however, such holder shall be given the opportunity to convert the outstanding principal amount into shares as described above. No holder of the Notes has the option to require cash payment as a result of the Trigger Event, hence the Notes are classified as non-current.

SHARE REPURCHASE PROGRAM

SHARE REPURCHASE PROGRAM	3 Months Ended
	Mar. 31, 2016
SHARE REPURCHASE PROGRAM
SHARE REPURCHASE PROGRAM	NOTE 12—SHARE REPURCHASE PROGRAM On March 9, 2016, the Company’s Board of Directors approved a new share repurchase authorization of up to $15 million. The repurchase program is expected to be executed over time. The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions, pursuant to a Rule 10b5-1 repurchase plan or by other means in accordance with federal securities laws. The timing and the amount of any repurchases will be determined by the Company’s management based on its evaluation of market conditions, capital allocation alternatives, and other factors. There is no guarantee as to the number of shares that will be repurchased, and the repurchase program may be extended, suspended or discontinued at any time without notice at the Company's discretion. On March 10, 2016 the Company commenced a tender offer to purchase up to $12.0 million in value of shares of its common stock $0.001 par value per share (the “Shares”), at a price not greater than $4.00 nor less than $3.30 per Share, to the seller in cash, less any applicable withholding taxes and without interest (the “Offer”). The Offer expired on April 7, 2016. The Company conducted the Offer through a procedure commonly called a modified “Dutch auction”. A modified “Dutch auction” tender offer allows stockholders to indicate how much stock and at what price within the specified offer range they wish to tender their stock. Based on the number of shares tendered and the prices specified by the tendering stockholders, the Company determines the lowest price per share within the specified range that will enable it to purchase $12.0 million of Common Stock at such price, or such lesser number of shares that are tendered and not withdrawn, subject to the terms of the tender offer. All stock purchased in the tender offer is purchased at the same price, even if the stockholder tendered at a lower price, so in some cases the Company may purchase stock at a price above the price indicated by the stockholder tendering that stock. If the tender offer had been fully subscribed, the maximum number of shares purchased in the tender offer would have represented approximately 8% of the Company’s currently outstanding Common Stock at the high end of the price range and approximately 10% of the Company’s currently outstanding Common Stock at the low end of the price range. Based on the final count by the depositary for the tender offer, the Company accepted for payment an aggregate of 2,323,879 shares of its common stock, $0.001 par value per share on April 7, 2016, at a purchase price of $4.00 per share for an aggregate purchase price of approximately $9.3 million. These shares represented approximately six percent of the shares issued and outstanding as of March 10, 2016, the date of commencement of the tender offer.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Mar. 31, 2016
SUBSEQUENT EVENT.
SUBSEQUENT EVENT	NOTE 13 – SUBSEQUENT EVENT On April 29, 2016, the Company’s lenders agreed to amend the 2013 Credit Agreement to allow the Company to complete the acquisition of TracePoint Consulting LLC, a Georgia limited liability company (“TracePoint”). In addition, the Company’s lenders agreed to allow the Company to exclude the acquisition from the Company’s $10.0 million fiscal year permitted acquisition basket and from the calculation of the Company’s Consolidated Fixed Charge Coverage ratio. On April 29, 2016, a subsidiary of the Company executed an Asset Purchase Agreement with TracePoint (“the Agreement”) and consummated the acquisition of substantially all of the assets and assumed certain liabilities of TracePoint for a purchase price of up to $7.8 million. The purchase price was comprised of $1.5 million of cash consideration paid at closing and the Company will pay an additional $1.3 million of cash consideration in April 2017, if certain financial targets are met for 2016. TracePoint will also have the right to receive up to $5.0 million in additional consideration paid 50% in cash and stock, respectively, via earn-out payments for fiscal years 2016-2018, if certain financial targets are met. On May 6, 2016, the Company prepaid a convertible note in the amount of $3.2 million for principal and accrued interest as satisfaction in full of all indebtedness owed by the Company under such convertible note. No gain or loss will be record as a result of this transaction. As a result of this transaction, the Company’s fully diluted shares outstanding will be reduced by 790,721 shares and the aggregate principal amount of convertible notes that remain outstanding is $0.2 million.

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. The complexity of the estimation process and issues related to the assumptions, risks and uncertainties inherent in the application of the proportional performance method of accounting affect the amounts of revenues, expenses, unbilled receivables and deferred revenue. Numerous internal and external factors can affect estimates. Estimates are also used for but not limited to: allowance for doubtful accounts, useful lives of furniture, fixtures and equipment, depreciation expense, contingent consideration, fair value assumptions in analyzing goodwill and intangible asset impairments, income taxes and deferred tax asset valuation, and the valuation of stock based compensation.
Fair Value	Fair Value The carrying value of the Company’s cash and cash equivalents, restricted cash, receivables, accounts payable, other current liabilities, and accrued interest approximated their fair values at March 31, 2016 and December 31, 2015 due to the short-term nature of these instruments. Fair value is the price that would be received upon a sale of an asset or paid upon a transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). Market participants can use market data or assumptions in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. Under the fair-value hierarchy: · Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; · Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and · Level 3 measurements include those that are unobservable and of a highly subjective measure. The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated: Basis of Fair Value Measurements March 31, 2016 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ $ — $ — $ Total $ $ — $ — $ Liabilities: Contingent consideration (1) $ — $ — $ $ Foreign currency exchange forward contract (2) — — Long-term debt, including current portion — — $ — $ $ $ Basis of Fair Value Measurements December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ $ — $ — $ Total $ $ — $ — $ Liabilities: Contingent consideration (1) $ — $ — $ $ Long-term debt , including current portion — — $ — $ — $ $ (1) The short-term portion is included in “Accrued expenses.” The long-term portion is included in “Other liabilities.” (2) Included in “Accrued Expenses.” The Company’s contingent consideration liability was $ 4.8 million and $4.0 million at March 31, 2016 and December 31, 2015, respectively. The fair value measurement of this contingent consideration is classified within Level 3 of the fair value hierarchy and reflects the Company’s own assumptions in measuring fair values using the income approach. In developing these estimates, the Company considered certain performance projections, historical results, and industry trends. This amount was estimated through a valuation model that incorporated probability-weighted assumptions related to the achievement of these milestones and the likelihood of the Company making payments. These cash outflow projections have then been discounted using a rate ranging from 2.3% to 14.5% . In January 2016, the Company entered into four foreign exchange forward contracts to partially hedge exposure to changes in foreign exchange rates. There are three remaining foreign exchange forward contracts with a EUR notional of 7.7 million and USD notional of 8.4 million at March 31, 2016. These contracts are scheduled to settle at various times throughout 2016. These contracts are marked-to-market with the resulting gains and losses recognized in earnings offsetting the gains and losses on the non-functional currency denominated monetary assets and liabilities being hedged. These derivative contracts are not designated as hedges and are carried at fair value, with changes in the fair value recorded to foreign currency transaction (loss) gain in the condensed consolidated statement of comprehensive income. We recognized $0.4 million of unrealized loss in foreign currency transaction (loss) gain for the three months ended March 31, 2016. The foreign currency exchange contracts agreement is valued using broker quotations or market transactions in either the listed or over-the-counter markets. These derivative instruments are classified within level 2. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair values of debt have been estimated using a discounted cash flow analysis based on the Company's incremental borrowing rate for similar borrowing arrangements. The incremental borrowing rate used to discount future cash flows ranged from 2.56% to 2.75% . The Company also considered recent transactions of peer group companies for similar instruments with comparable terms and maturities as well as an analysis of current market conditions. The following table represents the change in the contingent consideration liability during the three months ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 2015 Beginning Balance $ $ Payment of contingent consideration — Acquisition — Change in fair value of contingent consideration — Accretion of contingent consideration Unrealized gain (loss) related to currency translation Ending Balance $ $
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance that outlines a single comprehensive model for entities to use in accounting for revenue. Under the guidance, revenue is recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard is effective for public entities with annual and interim reporting periods beginning after December 15, 2016. On July 9, 2015, the FASB approved the deferral of the effective date of the new revenue guidance by one year to annual reporting periods beginning after December 15, 2017, with early adoption being permitted for annual periods beginning after December 15, 2016. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the guidance. The Company is currently assessing the effects this guidance may have on its consolidated financial statements, as well as the method of transition that the Company will use in adopting the new standard. In April 2015, the FASB issued guidance require the presentation of debt issuance costs in financial statements as a direct reduction of related debt liabilities with amortization of debt issuance costs reported as interest expense. Under current U.S. GAAP standards, debt issuance costs are reported as deferred charges (i.e., as an asset). In August 2015, the FASB clarified the guidance that debt issuance costs related to line-of-credit arrangements could continue to be presented as an asset and be subsequently amortized over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the arrangement. This guidance is effective for annual periods, and interim periods within those fiscal years, beginning after December 15, 2015 and is to be applied retrospectively upon adoption. The Company adopted the guidance effective January 1, 2016 and presented $0.8 million and $0.6 million, respectively, of debt issuance costs as a direct deduction to the debt liability as of March 31, 2016 and December 31, 2015. This change in accounting principle did not have an impact on the Company’s results of operations, cash flows or stockholders’ equity . In September 2015, the FASB issued updated guidance, which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Acquirers must recognize measurement-period adjustments during the period of resolution, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The updated guidance is effective for fiscal years beginning after December 15, 2015. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued an accounting standards update to simplify the presentation of deferred income taxes on the balance sheet. The update requires that all deferred tax assets and liabilities be classified as noncurrent. The current guidance that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not impacted by this update. The provisions of the new standard are effective beginning January 1, 2017, for annual and interim periods and early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its results of operations, but will result in a reclassification of current net deferred tax on its balance sheet in future years. Adoption of the guidance as of March 31, 2016 would result in a reclassification of current net deferred tax of $1.9 million and $2.1 million as of March 31, 2016 and December 31, 2015, respectively. In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases and will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The guidance requires the use of a modified retrospective approach. The Company is evaluating the impact of the guidance on its consolidated financial statements and related disclosures. In March 2016, the FASB issued amended guidance related to employee share-based payment accounting. The guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled and will be applied on a prospective basis. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, and can be applied retrospectively or prospectively. The guidance increases the amount companies can withhold to cover income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. The amended guidance will be effective for interim and annual periods beginning after December 15, 2016; early adoption is permitted if all provisions are adopted in the same period. The Company is evaluating the impact of the amended guidance on its consolidated financial statements and related disclosures.

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Summary of assets and liabilities measured at fair value on a recurring basis	Basis of Fair Value Measurements March 31, 2016 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ $ — $ — $ Total $ $ — $ — $ Liabilities: Contingent consideration (1) $ — $ — $ $ Foreign currency exchange forward contract (2) — — Long-term debt, including current portion — — $ — $ $ $ Basis of Fair Value Measurements December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ $ — $ — $ Total $ $ — $ — $ Liabilities: Contingent consideration (1) $ — $ — $ $ Long-term debt , including current portion — — $ — $ — $ $ (1) The short-term portion is included in “Accrued expenses.” The long-term portion is included in “Other liabilities.” (2) Included in “Accrued Expenses.”
Schedule of change in the contingent consideration liability	Three Months Ended March 31, 2016 2015 Beginning Balance $ $ Payment of contingent consideration — Acquisition — Change in fair value of contingent consideration — Accretion of contingent consideration Unrealized gain (loss) related to currency translation Ending Balance $ $

ACQUISITION (Tables)

ACQUISITION (Tables)	3 Months Ended
	Mar. 31, 2016
ACQUISITION
Schedule of preliminary allocable purchase price	Cash $ Post-completion installment payment Contingent consideration Total allocable purchase price $
Schedule of recognized amounts of identifiable assets acquired and liabilities assumed	Cash $ Accounts receivable Other assets Intangible assets Deferred income tax liability Accounts payable Accrued expenses and other Net assets acquired $ Goodwill $
Schedule of purchase price assigned to intangible assets and the amortization period	Purchase Price Allocation Asset Life Amortizable intangible assets: Customer relationships $ years Total intangible assets $

NET (LOSS) INCOME PER COMMON 23

NET (LOSS) INCOME PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2016
NET (LOSS) INCOME PER COMMON SHARE
Schedule of computation of basic and diluted earnings per share	Three Months Ended March 31, 2016 2015 Basic: Net (loss) income attributable to ISG $ $ Weighted average common shares (Loss) earnings per share attributable to ISG $ $ Diluted: Net (loss) income attributable to ISG $ $ Interest expense of convertible debt, net of tax — Net (loss) income, attributable to ISG, as adjusted $ $ Basic weighted average common shares Potential common shares — Diluted weighted average common shares Diluted (loss) earnings per share attributable to ISG $ $

GOODWILL (Tables)

GOODWILL (Tables)	3 Months Ended
	Mar. 31, 2016
GOODWILL
Schedule of changes in the carrying amount of goodwill	Balance as of December 31, 2015 $ Acquisition Foreign currency impact Balance as of March 31, 2016 $

REDEEMABLE NONCONTROLLING INT25

REDEEMABLE NONCONTROLLING INTEREST (Tables)	3 Months Ended
	Mar. 31, 2016
REDEEMABLE NONCONTROLLING INTEREST
Schedules of summary of activity in the noncontrolling interest	Balance as of December 31, 2015 $ Net income attributable to noncontrolling interest Accretion attributable to noncontrolling interest Balance as of March 31, 2016 $

SEGMENT AND GEOGRAPHICAL INFO26

SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2016
SEGMENT AND GEOGRAPHICAL INFORMATION
Schedule of geographical revenue information for the segment	Three Months Ended 2016 2015 Revenues Americas $ $ Europe Asia Pacific $ $

DESCRIPTION OF ORGANIZATION A27

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS (Details)	Mar. 31, 2016employeecountryclient
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Number of clients worldwide | client	500
Number of employees | employee	1,000
Number of countries | country	21

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value of Financial Instruments (Details) $ in Thousands, € in Millions	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 31, 2016EUR (€)derivative	Mar. 31, 2016USD ($)derivative	Jan. 31, 2016derivative	Dec. 31, 2015USD ($)
Liabilities:
Unrealized loss in foreign currency transaction	$ 400
Change in the contingent consideration liability
Beginning Balance	4,019	$ 4,825
Payment of contingent consideration	(200)
Acquisition	881
Change in fair value of contingent consideration	(35)
Accretion of contingent consideration	51	47
Unrealized gain (loss) related to currency translation	62	(116)
Ending Balance	4,778	$ 4,756
Foreign exchange forward | Not designated as hedges
Liabilities:
Number of foreign currency derivatives | derivative			3	3	4
Notional amount of foreign currency derivatives			€ 7.7	$ 8,400
Saugatuck Technology Inc.
Change in the contingent consideration liability
Ending Balance	$ 900
Minimum
Liabilities:
Discounted rate of cash outflow projections (as a percent)	2.30%
Incremental borrowing rate used to discount future cash flows from financial instruments (as a percent)	2.56%
Maximum
Liabilities:
Discounted rate of cash outflow projections (as a percent)	14.50%
Incremental borrowing rate used to discount future cash flows from financial instruments (as a percent)	2.75%
Recurring
Assets:
Cash equivalents				20		$ 20
Total				20		20
Liabilities:
Contingent consideration				4,778		4,019
Foreign currency exchange forward contract				393
Long-term debt , including current portion				50,218		50,829
Total				55,389		54,848
Recurring | Level 1
Assets:
Cash equivalents				20		20
Total				20		20
Recurring | Level 2
Liabilities:
Foreign currency exchange forward contract				393
Total				393
Recurring | Level 3
Liabilities:
Contingent consideration				4,778		4,019
Long-term debt , including current portion				50,218		50,829
Total				$ 54,996		$ 54,848

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Current net deferred tax	$ 1,948	$ 2,109
ASU 2015-03 | Restatement Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt liability	800	600
ASU 2015-17 | Pro Forma Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Current net deferred tax	$ 1,900	$ 2,100

ACQUISITION (Detail)

ACQUISITION (Detail) - USD ($) $ in Thousands	Feb. 29, 2016	Aug. 07, 2015	Mar. 31, 2016	Dec. 31, 2015
Recognized amounts of identifiable assets acquired and liabilities assumed
Goodwill			$ 38,600	$ 37,286
Experton Group AG
Business Acquisition
Contingent consideration lower range	$ 0
Contingent consideration higher range	1,200
Preliminary allocable purchase price
Cash	554
Post-completion installment payment	554
Contingent consideration	881
Total allocable purchase price	1,989
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash	110
Accounts receivable	412
Other assets	57
Intangible assets	1,091
Deferred income tax liability	(323)
Accounts payable	(51)
Accrued expenses and other	(521)
Net assets acquired	775
Goodwill	$ 1,214
Purchase price assigned to intangible assets and the amortization period
Amortizable intangible assets		$ 1,091
Experton Group AG | Customer relationships
Purchase price assigned to intangible assets and the amortization period
Amortizable intangible assets		$ 1,091
Asset Life		10 years
Experton Group AG | Selling, general and administrative
Recognized amounts of identifiable assets acquired and liabilities assumed
Acquisition related cost			$ 100

NET (LOSS) INCOME PER COMMON 31

NET (LOSS) INCOME PER COMMON SHARE - Antidilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock Appreciation Rights S A R S
Antidilutive securities
Securities considered antidilutive (in shares)	34,374	68,748
Restricted Stock
Antidilutive securities
Securities considered antidilutive (in shares)		100,000
Restricted Stock | CCI Consulting Private Limited
Antidilutive securities
Shares excluded from basic and diluted earnings per share since the contingency has not been met	50,000

NET (LOSS) INCOME PER COMMON 32

NET (LOSS) INCOME PER COMMON SHARE - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic:
Net (loss) income attributable to ISG	$ (699)	$ 853
Weighted average common shares	37,340	37,032
(Loss) earnings per share attributable to ISG	$ (0.02)	$ 0.02
Diluted:
Net (loss) income attributable to ISG	$ (699)	$ 853
Interest expense of convertible debt, net of tax		16
Net (loss) income, attributable to ISG, as adjusted	$ (699)	$ 869
Basic Weighted Average Common shares	37,340	37,032
Potential common shares		1,458
Diluted weighted average common shares	37,340	38,490
Diluted (loss) earnings per share attributable to ISG	$ (0.02)	$ 0.02

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
INCOME TAXES
Effective income tax rates (as a percent)	16.50%	51.00%
Pretax loss	$ 780	$ (1,851)
Unrecognized tax benefits	1,800
Unrecognized tax benefits that would impact the company's effective tax rate	1,800
Interest and penalties accrued	$ 500

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Apr. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Contingent Consideration
Contingent acquisition liability		$ 4,778	$ 4,019	$ 4,756	$ 4,825
Salvaggio Teal And Associates
Contingent Consideration
Amount paid for contingent consideration	$ 1,700
Salvaggio Teal And Associates | Accrued expenses
Contingent Consideration
Contingent consideration classified as current		1,700
CCI Consulting Private Limited
Contingent Consideration
Contingent acquisition liability		1,300
Amount paid for contingent consideration	700
CCI Consulting Private Limited | Accrued expenses
Contingent Consideration
Contingent consideration classified as current		700
Saugatuck Technology Inc.
Contingent Consideration
Contingent acquisition liability		900
Amount paid for contingent consideration	$ 200
Saugatuck Technology Inc. | Other liabilities
Contingent Consideration
Contingent consideration classified as noncurrent		900
Experton Group AG | Other liabilities
Contingent Consideration
Contingent consideration classified as noncurrent		$ 900

GOODWILL (Details)

GOODWILL (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Changes in the carrying amount of goodwill
Balance at the beginning	$ 37,286
Acquisitions	1,214
Foreign currency impact	100
Balance at the end	$ 38,600

REDEEMABLE NONCONTROLLING INT36

REDEEMABLE NONCONTROLLING INTEREST (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Balance at the beginning of the period	$ 939
Net income attributable to noncontrolling interest	48	$ 54
Balance at the end of the period	1,006
Convergent Technologies Partners SPA
Balance at the beginning of the period	939
Net income attributable to noncontrolling interest	48
Accretion attributable to noncontrolling interest	19
Balance at the end of the period	$ 1,006

SEGMENT AND GEOGRAPHICAL INFO37

SEGMENT AND GEOGRAPHICAL INFORMATION (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)segment	Mar. 31, 2015USD ($)
SEGMENT AND GEOGRAPHICAL INFORMATION
Number of segments | segment	1
Segment and geographical information
Revenues	$ 49,929	$ 50,539
Americas
Segment and geographical information
Revenues	25,922	27,616
Europe
Segment and geographical information
Revenues	19,053	18,061
Asia Pacific
Segment and geographical information
Revenues	$ 4,954	$ 4,862

FINANCING ARRANGEMENTS AND LO38

FINANCING ARRANGEMENTS AND LONG-TERM DEBT (Details)	Mar. 09, 2016USD ($)	May. 11, 2015USD ($)installment	Nov. 25, 2013USD ($)	Nov. 14, 2013	May. 03, 2013USD ($)	Apr. 26, 2013USD ($)	Jan. 04, 2011$ / shares	Jan. 04, 2011USD ($)$ / shares	Mar. 31, 2016USD ($)	Jun. 30, 2013USD ($)	Dec. 31, 2015USD ($)
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Additional principal repayment due in 2016									$ 1,700,000
Additional principal repayment due in 2017									2,300,000
Deferred debt issuance costs									800,000
Other assets									4,478,000		$ 4,704,000
Long-term debt									47,215,000		47,947,000
Restatement Adjustment | ASU 2015-03
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Other assets									(600,000)
Long-term debt									600,000
Amount outstanding									800,000		$ 600,000
Secured Debt
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Outstanding borrowings									$ 36,800,000
Secured Debt | Subsidiaries
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Maximum total leverage ratio									3
Revolving Credit Facility
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Outstanding borrowings									$ 10,000,000
Convertible Notes Payable | C C G H Limited
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Issuance of debt								$ 6,300,000
Rate of interest (as a percent)							3.875%	3.875%
Trigger Event condition related to minimum market price of common stock on the Nasdaq Global market (in dollars per share) | $ / shares							$ 4	$ 4
Trigger event condition related to number of consecutive trading days on which market price of common stock exceeds $4 per share on the Nasdaq Global Market								60 days
Conversion rate							0.25
Written notice period after trigger event, that company need to serve for prepayment of all or portion of the outstanding principal amount of the Notes				30 days				30 days
Amount paid in satisfaction of full of all indebtedness owing by the Company under the Note						$ 650,000
Amount outstanding						$ 1,100,000
Convertible Notes Payable | C C G H Limited | Gain on extinguishment of debt
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Amount of gain (loss) recognized										$ 500,000
Credit Agreement2013
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Term of senior secured credit facility					5 years
Outstanding borrowings					$ 55,000,000
Additional term due to amendment		2 years
Maximum total leverage ratio	3
Credit Agreement2013 | Secured Debt
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Maximum borrowing capacity under senior secured credit facility					45,000,000
Number of quarterly installments | installment		20
Periodic repayment		$ 562,500
Percentage of proceeds from asset sales used for mandatory repayments of the debt									100.00%
Percentage of net proceeds from issuances of debt and equity used for mandatory repayments of the debt									100.00%
Percentage of net proceeds from insurance recovery and condemnation events used for mandatory repayments of the debt									100.00%
Minimum notional amount required as a percentage of aggregate outstanding indebtedness other than revolving outstanding for establishment of fixed or maximum interest rate covering									50.00%
Interest rate covering period for specified percentage of notional amount									3 years
Credit Agreement2013 | Secured Debt | London Interbank Offered Rate L I B O R
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Interest rate basis									LIBOR
Applicable margin (as a percent)									5.00%
Credit Agreement2013 | Revolving Credit Facility
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Maximum borrowing capacity under senior secured credit facility	$ 40,000,000				$ 25,000,000
Increase to maximum borrowing capacity	$ 15,000,000
Credit Agreement2013 | Convertible Notes Payable | C C G H Limited
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Amount of prepayment available under amended facility		$ 3,500,000
Amount of gain (loss) recognized			$ 0
Settlement of Compass convertible note			$ 1,700,000

SHARE REPURCHASE PROGRAM (Detai

SHARE REPURCHASE PROGRAM (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 07, 2016	Mar. 10, 2016	Mar. 09, 2016	Mar. 31, 2016	Dec. 31, 2015
Common stock, par value (in dollars per share)				$ 0.001	$ 0.001
Tender Offer
Share repurchases amount	$ 9.3
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Share price (in dollars per share)	$ 4
Maximum percentage of shares on the high end of price range				8.00%
Maximum percentage of shares on the low end of price range				10.00%
Number of shares of common stock repurchased	2,323,879
Percentage of shares repurchased		6.00%
Tender Offer | Maximum
Share repurchases amount		$ 12
Share price (in dollars per share)		$ 4
Tender Offer | Minimum
Share price (in dollars per share)		$ 3.30
Repurchase Program March 2016
Share repurchases amount			$ 15

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - USD ($) $ in Millions	May. 06, 2016	Apr. 29, 2016	Mar. 31, 2015
SUBSEQUENT EVENT
Reduction in diluted shares outstanding			1,458,000
Subsequent Event | Convertible Notes Payable
SUBSEQUENT EVENT
Repayments of Debt	$ 3.2
Amount of gain (loss) recognized	$ 0
Reduction in diluted shares outstanding	790,721
Principal amount of debt outstanding	$ 0.2
Subsequent Event | Tracepoint
SUBSEQUENT EVENT
Cash paid		$ 1.5
Cash consideration payable in April 2015		1.3
Maximum earn-out payments to be paid to the sellers		$ 5
Percentage of cash and stock		50.00%
Subsequent Event | Tracepoint | Maximum
SUBSEQUENT EVENT
Total fair value transferred		$ 7.8
Subsequent Event | Credit Agreement2013
SUBSEQUENT EVENT
Permitted acquisition baskets amount		$ 10