Information Services (III) 10-K 15 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 01, 2019	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	Information Services Group Inc.
Entity Central Index Key	0001371489
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
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			$ 161,507,918
Entity Common Stock, Shares Outstanding		45,799,605
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 18,636	$ 28,420
Accounts receivable and contract assets, net of allowance of $401 and $503, respectively	75,934	70,824
Prepaid expenses and other current assets	3,620	4,467
Total current assets	98,190	103,711
Restricted cash	89	94
Furniture, fixtures and equipment, net	6,636	5,229
Goodwill	85,389	85,619
Intangible assets, net	20,622	25,684
Deferred tax assets	2,944	2,521
Other assets	861	1,902
Total assets	214,731	224,760
Current liabilities
Accounts payable	8,453	7,192
Current maturities of long-term debt	8,250	15,499
Contract liabilities	6,187	8,898
Accrued expenses	17,759	21,486
Total current liabilities	40,649	53,075
Long-term debt, net of current maturities	89,212	98,838
Deferred tax liabilities	1,790	1,569
Other liabilities	4,493	7,741
Total liabilities	136,144	161,223
Commitments and contingencies (Note 11)
Stockholders' equity
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued
Common stock, $0.001 par value, 100,000 shares authorized; 45,477 shares issued and 45,430 outstanding at December 31, 2018 and 44,490 shares issued and 43,560 outstanding at December 31, 2017	45	44
Additional paid-in capital	235,998	230,134
Treasury stock (47 and 930 common shares, respectively, at cost)	(203)	(3,161)
Accumulated other comprehensive loss	(7,155)	(5,666)
Accumulated deficit	(150,098)	(157,814)
Total stockholders' equity	78,587	63,537
Total liabilities and stockholders’ equity	$ 214,731	$ 224,760

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS
Accounts receivables and contract assets, allowances	$ 401,000	$ 503,000
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	45,477	44,490
Common stock, shares outstanding	45,430	43,560
Treasury stock, shares	47	930

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Revenues	$ 275,769	$ 269,554
Operating expenses
Direct costs and expenses for advisors	159,921	156,630
Selling, general and administrative	95,400	91,046
Depreciation and amortization	7,771	12,721
Operating income	12,677	9,157
Interest income	116	107
Interest expense	(6,688)	(6,821)
Foreign currency transaction gain (loss)	7	(343)
Income before taxes	6,112	2,100
Income tax provision	435	4,198
Net income (loss)	5,677	(2,098)
Net income attributable to non-controlling interest		32
Net income (loss) attributable to ISG	$ 5,677	$ (2,130)
Weighted average shares outstanding:
Basic (in shares)	44,673	43,025
Diluted (in shares)	46,067	43,025
Earnings (loss) per share attributable to ISG:
Basic (in dollars per share)	$ 0.13	$ (0.05)
Diluted (in dollars per share)	$ 0.12	$ (0.05)
Comprehensive income:
Net income (loss)	$ 5,677	$ (2,098)
Foreign currency translation, net of tax benefit (expense) of $470 and $(1,270), respectively.	(1,489)	2,134
Comprehensive income:	4,188	36
Comprehensive income attributable to non-controlling interest		32
Comprehensive income attributable to ISG	$ 4,188	$ 4

CONSOLIDATED STATEMENT OF COM_2

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Foreign currency translation, benefit (expense)	$ 470	$ (1,270)

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in-Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
Balance at Dec. 31, 2016	$ 44	$ 228,692	$ (8,216)	$ (7,800)	$ (155,684)	$ 57,036
Balance (in shares) at Dec. 31, 2016	44,203
Increase (Decrease) in Stockholders' Equity
Net income attributable to ISG					(2,130)	(2,130)
Other comprehensive income				2,134		2,134
Equity securities repurchased			(2,853)			(2,853)
Proceeds from issuance of ESPP		(136)	808			672
Issuance of treasury shares		(7,100)	7,100
Accretion of noncontrolling interest		30				30
Issuance of common stock for contingent earn-out		721				721
Issuance of common stock for contingent earn-out (in shares)	287
Purchase of non-controlling interest		488				488
Stock based compensation		7,439				7,439
Balance at Dec. 31, 2017	$ 44	230,134	(3,161)	(5,666)	(157,814)	$ 63,537
Balance (in shares) at Dec. 31, 2017	44,490					44,490
Increase (Decrease) in Stockholders' Equity
Net income attributable to ISG					5,677	$ 5,677
Other comprehensive income				(1,489)		(1,489)
Impact of change in accounting policy					2,039	2,039
Equity securities repurchased			(3,063)			(3,063)
Proceeds from issuance of ESPP		(9)	833			824
Issuance of treasury shares		(5,188)	5,188
Issuance of common stock for contingent earn-out		1,200				1,200
Issuance of common stock for contingent earn-out (in shares)	290
Issuance of common stock	$ 1	(1)
Issuance of common stock (in shares)	697
Stock based compensation		9,862				9,862
Balance at Dec. 31, 2018	$ 45	$ 235,998	$ (203)	$ (7,155)	$ (150,098)	$ 78,587
Balance (in shares) at Dec. 31, 2018	45,477					45,477

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income (loss)	$ 5,677	$ (2,098)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense	2,739	3,207
Amortization of intangible assets	5,032	9,514
Deferred tax (benefit) expense from stock issuances	(202)	333
Amortization of deferred financing costs	761	884
Loss on sublease		578
Stock-based compensation	9,862	7,439
Changes in fair value of contingent consideration	356	145
Changes in accounts receivable allowance	231	351
Deferred tax benefit	(241)	(1,008)
Loss on disposal of fixed assets	66	19
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable and contract assets	(4,488)	(6,028)
Prepaid expense and other assets	885	1,545
Accounts payable	879	(2,381)
Contract liabilities	(471)	(387)
Debt issuance costs		(38)
Accrued expenses	(1,958)	(631)
Net cash provided by operating activities	19,128	11,444
Cash flows from investing activities
Acquisitions, net of cash acquired		(889)
Purchase of furniture, fixtures and equipment	(3,999)	(3,169)
Net cash used in investing activities	(3,999)	(4,058)
Cash flows from financing activities
Principal payments on borrowings	(10,637)	(8,540)
Payment of the Alsbridge Notes	(7,000)
Proceeds from issuance of employee stock purchase plan shares	824	672
Payment of contingent consideration	(1,200)	(2,665)
Installment payment for acquisitions		(543)
Payments related to tax withholding for stock-based compensation	(2,927)	(2,210)
Equity securities repurchased	(3,063)	(2,853)
Net cash used in financing activities	(24,003)	(16,139)
Effect of exchange rate changes on cash	(915)	2,285
Net decrease in cash, cash equivalents, and restricted cash	(9,789)	(6,468)
Cash, cash equivalents, and restricted cash, beginning of period	28,514	34,982
Cash, cash equivalents, and restricted cash, end of period	18,725	28,514
Cash paid for:
Interest	5,978	5,596
Taxes, net of refunds	2,622	2,440
Non-cash investing and financing activities:
Issuance of treasury stock for vested restricted stock awards	$ 5,188	$ 7,100

DESCRIPTION OF ORGANIZATION AND

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	12 Months Ended
	Dec. 31, 2018
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	NOTE 1—DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIO Information Services Group, Inc. (the “Company”, or “ISG”) was founded in 2006 with the strategic vision to become a high-growth, leading provider of information-based advisory services. The Company specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; technology strategy and operations design; change management; market intelligence and technology research and analysis.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly‑owned subsidiaries. These consolidated financial statements and footnotes are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, references to the Company include ISG and its consolidated subsidiaries. Use of Estimates The preparation of financial statements in conformity with GAAP 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 revenue recognition guidance for contracts in which controls is transferred to the customer over time affect the amounts of revenues, expenses, contract assets and contract liabilities. 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 and definite lived intangible assets, depreciation expense, fair value assumptions in analyzing goodwill, income taxes and deferred tax asset valuation, and the valuation of stock-based compensation. Business Combinations We have acquired businesses critical to the Company’s long‑term growth strategy. Results of operations for acquisitions are included in the accompanying consolidated statement of comprehensive income from the date of acquisition. Acquisitions are accounted for using the purchase method of accounting and the purchase price is allocated to the net assets acquired based upon their estimated fair values at the date of acquisition. The excess of the purchase price over the net assets was recorded as goodwill. Acquisition-related costs are expensed as incurred and recorded in selling, general and administrative expenses. Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents, including certain money market accounts. The Company principally maintains its cash in money market and bank deposit accounts in the United States of America which typically exceed applicable insurance limits. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. Restricted Cash Restricted cash consists of cash and cash equivalents which the Company has committed to fulfill certain obligations and are not available for general corporate purposes. Accounts Receivable, Contract Assets and Allowance for Doubtful Accounts Our trade receivables primarily consist of amounts due for services already performed via fixed fee or time and materials arrangements. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of clients to pay fees or for disputes that affect its ability to fully collect billed accounts receivable. The allowance for these risks is prepared by reviewing the status of all accounts and recording reserves on a specific identification method based on previous experiences and historical bad debts. However, our actual experience may vary significantly from these estimates. If the financial condition of our clients were to deteriorate, resulting in their inability or unwillingness to pay their invoices, we may need to record additional allowances or write‑offs in future periods. To the extent the provision relates to a client’s inability or unwillingness to make required payments, the provision is recorded as bad debt expense, which is classified within selling, general and administrative expense in the accompanying consolidated statement of comprehensive income. The provision for unbilled services is recorded as a reduction to revenues to the extent the provision relates to fee adjustments and other discretionary pricing adjustments. Prepaid Expenses and Other Assets Prepaid expenses and other assets consist primarily of prepaid expenses for insurance, conferences and deposits for facilities, programs and promotion items. Furniture, Fixtures and Equipment, net Furniture, fixtures and equipment is recorded at cost. Depreciation is computed by applying the straight‑line method over the estimated useful life of the assets, which ranges from three to five years. Leasehold improvements are depreciated over the lesser of the useful life of the underlying asset or the lease term, which generally ranges from three to five years. Expenditures for renewals and betterments are capitalized. Repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any associated gain or loss thereon is reflected in the accompanying consolidated statement of comprehensive income. Internal‑Use Software and Website Development Costs The Company capitalizes internal‑use software and website development costs and records these amounts within furniture, fixtures and equipment. Accounting standards require that certain costs related to the development or purchase of internal‑use software and systems as well as the costs incurred in the application development stage related to its website be capitalized and amortized over the estimated useful life of the software or system. They also require that costs related to the preliminary project stage, data conversion and post implementation/operation stage of an internal‑use software development project be expensed as incurred. During the years ended December 31, 2018 and 2017, the Company capitalized $0.5 million and $1.3 million, respectively, of costs associated with system and website development. Goodwill Our goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired at the date of acquisition. Goodwill is not amortized but rather tested for impairment at least annually in accordance with accounting and disclosure requirements for goodwill and other indefinite lived intangible assets. This test is performed by us during our fourth fiscal quarter or more frequently if we believe impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value of the reporting unit is less than its carrying amount. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than their carrying amounts, an impairment loss is recognized in an amount equal to the difference. Subsequent increases in value are not recognized in the financial statements. The Company adopted Accounting Standards Update (“ASU”) 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" effective December 30, 2017 which has eliminated Step 2 from the goodwill impairment test. Under this update, if an impairment is identified, an entity should record the goodwill impairment as an amount resulting from the comparison of the fair value of a reporting unit with its carrying amount. There was no impairment of goodwill during the years ended December 31, 2018 and 2017, nor were any indicators identified in 2017 or 2018 that would suggest that it is more likely than not that the Company’s reporting unit is impaired. Long‑Lived Assets Long lived assets, excluding goodwill and indefinite lived intangibles, to be held and used by the Company are reviewed to determine whether any significant change in the long-lived asset’s physical condition, a change in industry conditions or a reduction in cash flows associated with the use of the long-lived asset. If these or other factors indicate the carrying amount of the asset may not be recoverable, the Company determines whether impairment has occurred through the use of an undiscounted cash flow analysis at the asset group level, which is the lowest level for which identifiable cash flows exist that are separately identifiable from other cash flows. If impairment has occurred, the Company recognizes a loss for the difference between the carrying amount and the fair value of the asset group. The fair value of the asset group is measured using market prices or, in the absence of market prices, an estimate of discounted cash flows. Cash flows are generally discounted at an interest rate commensurate with our weighted average cost of capital. Assets are classified as held for sale when the Company has a plan for disposal of certain assets and those assets meet the held for sale criteria. Debt Issuance Costs Costs directly incurred in obtaining long‑term financing, typically bank and attorney fees, are deferred and are amortized over the life of the related loan using the effective interest method. Deferred issuance costs are classified as a direct deduction to the long-term debt in the accompanying consolidated balance sheet. Amortization of debt issuance costs is included in interest expense and totaled $0.8 million and $0.9 million for the years ended December 31, 2018 and 2017, respectively. Revenue Recognition We recognize our revenues for the sale of services and products by applying the following five steps: (1) identify the contract with the customer; (2) identify the performance obligation(s) in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligation(s); and (5) recognize revenue when (or as) the company satisfies the performance obligations. We principally derive revenues from fees for services generated on a project by project basis. Prior to the commencement of a project, we reach agreement with the client on rates for services based upon the scope of the project, staffing requirements and the level of client involvement. It is our policy to obtain written agreements from clients prior to performing services. In these agreements, the clients acknowledge that they will pay based upon the amount of time spent on the project or an agreed upon fee structure. In instances where substantive acceptance provisions are specified in customer contracts, revenues are deferred until all acceptance criteria have been met. Revenues for time and materials contracts are recognized based on the number of hours worked by our advisors at an agreed upon rate per hour and are recognized in the period in which services are performed. Revenues for time and materials contracts are billed monthly, semimonthly or in accordance with the specific contractual terms of each project. Revenues related to fixed fee or capped fee contracts are recognized into revenue as value is delivered to the customer, consistent with the transfer of control to the customer over time. Revenue for these contracts is recognized proportionally over the term of the contract using an input method based on the proportion of labor hours incurred as compared to the total estimated labor hours for the project, which we consider the best available indicator of the pattern and timing in which contract obligations are fulfilled and control transfers to the customer. This percentage is multiplied by the contracted dollar amount of the project to determine the amount of revenue to recognize in an accounting period. The contracted amount used in this calculation typically excludes the amount the client pays for reimbursable expenses. There are situations where the number of hours to complete projects may exceed our original estimate as a result of an increase in project scope or unforeseen events. On a regular basis, we review the hours incurred and estimated total labor hours to complete. The results of any revisions in these estimates are reflected in the period in which they become known. The agreements entered into in connection with a project, whether on a time and materials basis or fixed fee or capped fee basis, typically allow our clients to terminate early due to breach or for convenience with 30 days’ notice. In the event of termination, the client is contractually required to pay for all time, materials and expenses incurred by us through the effective date of the termination. For managed service implementation contracts, revenue is recognized over time as a percentage of hours incurred to date as compared to the total expected hours of the implementation, consistent with the transfer of control to the customer. In addition, from time to time, we enter into agreements with clients that limit our right to enter into business relationships with specific competitors of that client for a specific time period. These provisions typically prohibit us from performing a defined range of services that it might otherwise be willing to perform for potential clients. These provisions are generally limited to six to twelve months and usually apply only to specific employees or the specific project team. We also derive revenues based on negotiating reductions in network costs of companies with the entity’s related service providers and providing other services such as audits of network and communication expenses, and consultation for network architecture. These contracts can be fixed in fees or can be based on the level of savings achieved related to its communications costs. Additionally, these contracts can also have a fixed component and a contingent component that is based on the savings generated by the Company. For network contingency contracts with termination for convenience clauses, revenue is recognized over time due to the existence of provisions for payment for progress incurred to date plus a reasonable profit margin. The contract periods range from a few months to in excess of a year. We also enter into arrangements for the sale of robotics software licenses and related delivery of consulting services at the same time or within close proximity to one another. Such software-related performance obligations include the sale of software licenses and other software-related services. For software and implementation contracts, revenue associated with the software performance obligation is recognized at the point at which the software is installed, while revenue on the implementation service performance obligation is recognized over the software implementation period as a percentage of hours incurred to date as compared to the total expected hours. When we recognize revenues in advance of billing, those revenues are recorded as contract assets. When we receive cash in advance of completing services or earning revenues, those amounts are recorded as contract liabilities. Reimbursable Expenditures Amounts billed to customers for reimbursable expenditures are included in revenues and the associated costs incurred by the Company are included in direct costs and expenses for advisors in the accompanying consolidated statement of comprehensive income. Non‑reimbursable amounts are expensed as incurred. Reimbursable expenditures totaled $9.8 million and $9.8 million for the years ended December 31, 2018 and 2017, respectively. Direct Costs and Expenses for Advisors Direct costs and expenses for advisors include payroll expenses and advisory fees directly associated with the generation of revenues and other program expenses. Direct costs and expenses for advisors are expensed as incurred. Direct costs and expenses for advisors also include expense accruals for discretionary bonus payments. Bonus accrual levels are adjusted throughout the year based on actual and projected individual and Company performance. Stock‑Based Compensation We grant restricted stock units with a fair value that is determined based on the closing price of our common stock on the date of grant. Such grants generally vest ratably over a four-year period for employees and a three-year period for directors. Stock based compensation expense is recognized ratably over the applicable service period. We follow the provisions of accounting and disclosure requirements for share based payments, including the measurement and recognition of all share-based compensation under the fair value method. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and accounts receivable. The Company places its cash investments with high quality financial institutions. The Company extends credit to its customers based upon an evaluation of the customer’s financial condition and credit history and generally does not require collateral. Treasury Stock The Company makes treasury stock purchases in the open market pursuant to the share repurchase program, which was most recently approved by the Board of Directors on March 9, 2016. Treasury stock is recorded on the consolidated balance sheet at cost as a reduction of stockholders’ equity. Shares are released from Treasury at original cost on a first‑in, first‑out basis, with any gain on the sale reflected as an adjustment to additional paid‑in capital. Losses are reflected as an adjustment to additional paid‑in capital to the extent of gains previously recognized, otherwise as an adjustment to retained earnings. Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the end of the reporting period. Revenue and expense items are translated at average exchange rates for the reporting period. Resulting translation adjustments are included in the accompanying statement of comprehensive income and accompanying statement of stockholders’ equity as a component of Accumulated Other Comprehensive Loss . The functional currency of the Company and its subsidiaries is the respective local currency. The Company has contracts denominated in foreign currencies and therefore, a portion of the Company’s revenues are subject to foreign currency risks. Transactional currency gains and losses that arise from transactions denominated in currencies other than the functional currencies of our operations are recorded in Foreign Currency Transaction Loss in the accompanying consolidated statement of comprehensive income. Fair Value of Financial Instruments The carrying value of the Company’s cash and cash equivalents, receivables, accounts payable, other current liabilities, and accrued interest approximate fair value. Fair value measurements were applied with respect to our nonfinancial assets and liabilities measured on a nonrecurring basis, which would consist of measurements primarily to goodwill, intangible assets and other long‑lived assets, and assets acquired and liabilities assumed in a business combination. 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. During 2018, there were no transfers of our financial assets between Level 1, Level 2, or Level 3 measures. Our financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated: Basis of Fair Value Measurements 12/31/2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 315 $ - $ - $ 315 Total $ 315 $ - $ - $ 315 Liabilities: Contingent consideration (1) $ - $ - $ 1,703 $ 1,703 $ - $ - $ 1,703 $ 1,703 Basis of Fair Value Measurements 12/31/2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 303 $ - $ - $ 303 Total $ 303 $ - $ - $ 303 Liabilities: Contingent consideration (1) $ - $ - $ 3,698 $ 3,698 $ - $ - $ 3,698 $ 3,698 (1) The short-term portion is included in “accrued expenses.” The long-term portion is included in “Other liabilities.” 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 14.5% to 28.5%. The following table represents the change in the contingent consideration liability during the years ended December 31, 2018 and 2017: Years Ended December 31, 2018 2017 Beginning Balance $ 3,698 $ 6,073 Payments of contingent consideration (2,401) (3,386) Change in value of contingent consideration 356 145 Accretion of contingent consideration 52 826 Unrealized (loss) gain related to currency translation (2) 40 Ending Balance $ 1,703 $ 3,698 The Company’s financial instruments include outstanding borrowings of $99.1 million at December 31, 2018 and $116.7 million at December 31, 2017, which are carried at amortized cost. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair value of the Company’s outstanding borrowings is approximately $98.9 million and $116.5 million at December 31, 2018 and 2017, respectively. 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 5.3% to 5.5%. 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. Income Taxes We use the asset and liability method to account for income taxes, including recognition of deferred tax assets and liabilities for the anticipated future tax consequences attributable to differences between financial statement amounts and their respective tax basis. We review our deferred tax assets for recovery. A valuation allowance is established when we believe that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in the valuation allowance from period to period are included in our tax provision in the period of change. For uncertain tax positions, we use the prescribed model for assessing the financial recognition and measurement of all tax positions taken or expected to be taken in tax returns. This guidance provides clarification on derecognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. Our provision for income taxes also includes the impact of provisions established for uncertain income tax positions, as well as the related interest. In December 2017, the Tax Cuts and Jobs Act (the “TCJ Act”) legislation was enacted. The TCJ Act includes significant changes to the U.S. corporate tax system, including a U.S. federal corporate income tax rate reduction from 35% to 21% and other changes. Accounting Standards Codification 740, Income Taxes, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation was enacted. However, with respect to the TCJ Act, given the significance of the change and the time of year in which it was enacted, guidance was provided that enabled companies to recognize the impacts on a provisional basis. As such, we have accounted for the tax effects as a result of the enactment of the TCJ Act as of December 31, 2017 on a provisional basis and have updated our provisional assessment of the tax effects of the TCJ Act during the year ended December 31, 2018. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“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 has less than fifty leases for which a corresponding right to use asset and lease liability of approximately $10.2 million will be recorded on the balance sheet as of January 1, 2019. The adoption of this guidance will not have a material impact on our results of operations and will have no impact on our cash flows. In August 2016, the FASB issued new guidance intended to reduce diversity in practice in how certain cash receipts and payments are classified in the statement of cash flows, including debt prepayment or extinguishment costs, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, and distributions from certain equity method investees. The guidance became effective for interim and annual periods beginning after December 15, 2017, and we adopted the guidance as of January 1, 2018. The guidance requires application using a retrospective transition method. The adoption of this guidance by the Company did not have a material impact on our results of operations. In August 2018, the FASB issued an update that modifies the disclosure requirements for fair value measurements by removing, modifying or adding disclosures. The guidance is effective for fiscal year beginning after December 15, 2019 and early adoption is permitted. Certain disclosures in the update are applied retrospectively, while others are applied prospectively. The Company is currently evaluating the potential impact of adopting this guidance on its financial statements. In September 2018, the FASB issued new guidance which requires a customer in a cloud computing arrangement to determine which implementation costs to capitalize as assets or expense as incurred. Under the new guidance, capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. This update is effective for annual periods beginning after December 15, 2019, and interim periods within those periods, and early adoption is permitted. The Company is currently evaluating the potential impact of adopting this guidance on its financial statements. In November 2018, the FASB issued guidance to clarify that certain transactions between parties to collaborative arrangements should be accounted for in accordance with FASB revenue guidance when the counterparty is a customer. This guidance also prohibits the presentation of collaborative arrangements as revenues from contracts with customers if the counterparty is not a customer. This guidance, which is required to be applied retrospectively and is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted, is not expected to have an impact on the Company’s consolidated financial statement.

REVENUE

REVENUE	12 Months Ended
	Dec. 31, 2018
REVENUE
REVENUE	NOTE 3—REVENUE In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASC Topic 606”), “Revenue from Contracts with Customers”. ASC Topic 606 supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition” (“ASC Topic 605”) and requires the recognition of revenue upon transfer of control of promised services and products to clients in an amount that reflects the consideration we expect to receive in exchange for those services and products. We adopted ASC Topic 606 as of January 1, 2018 using the cumulative catch-up transition method. The most significant changes resulting from the adoption of ASC Topic 606 are as follows: · For software and implementation contracts, revenue recognition on the software component is accelerated to the point at which the software is installed, while revenue on the implementation component is recognized over the software implementation period as a percentage of hours incurred to date as compared to the total expected hours. · For network contingency contracts with termination for convenience clauses, revenue is recognized over time due to the existence of provisions for payment for progress incurred to date plus a reasonable profit margin. · For managed service implementation contracts, revenue is recognized over time as a percentage of hours incurred to date as compared to the total expected hours of the implementation. We recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of retained earnings at the beginning of 2018. The comparative information has not been adjusted for the effect of ASC Topic 606 and continues to be reported under the accounting standards in effect for the periods presented. Upon the adoption of ASC Topic 606 on January 1, 2018, we recorded a net increase to opening retained earnings of $2.0 million. The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 for the adoption of ASC Topic 606 was as follows: As of January 1, 2018 As Previously Reported As Adjusted Under ASC 605 Adjustments for ASC 606 Assets Accounts receivables and contract assets, net of allowance of $503 $ 70,824 $ 1,468 $ 72,292 Prepaid expenses and other current assets $ 4,467 $ (1,071) $ 3,396 Deferred tax assets $ 2,521 $ (549) $ 1,972 Liabilities Contract liabilities $ 8,898 $ (2,418) $ 6,480 Accrued expenses $ 21,486 $ 132 $ 21,618 Deferred tax liabilities $ 1,569 $ 95 $ 1,664 Stockholders' equity Accumulated deficit $ (157,814) $ 2,039 $ (155,775) The majority of our revenue is derived from contracts that can span from a few months to several years. We enter into contracts that can include various combinations of services and products, which, depending on contract type, are sometimes capable of being distinct. If services are determined to be distinct, they are accounted for as separate performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the client and is the unit of account in ASC Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For contracts with multiple performance obligations, including our managed service implementation and software and implementation contract types, the Company allocates the transaction price to each performance obligation using our best estimate of the standalone selling price, or SSP, of each distinct good or service in the contract. As part of our adoption of ASC Topic 606, we used practical expedients permitted by the standard when applicable. These practical expedients included: · applying the new guidance only to contracts that are not completed as of January 1, 2018; · expensing the incremental costs to obtain a contract as incurred when the expected amortization period is one year or less; and · presenting all revenue net of any related sales tax. Our contracts may include promises to transfer multiple services and products to a client. Determining whether services and products are considered distinct performance obligations that should be accounted for separately versus together may require judgment. Estimates were required to determine the SSP for each distinct performance obligation identified within our managed service implementation contracts and software and implementation contracts. Further details of our approach to determining the SSP for each contract type is described below. · For our software and implementation contracts, we had to determine the SSP for both the software license and implementation service performance obligations. For the software license performance obligation, we utilized the adjusted market assessment approach and determined that our listed price of the software licenses generally approximated the SSP. For the implementation service performance obligation, we utilized the residual approach, which resulted in the difference between the total contract value and the software license price in the arrangement being allocated to the implementation service. · For our managed service implementation contracts, we had to determine the SSP for both the managed services and implementation performance obligations. For each performance obligation, we estimated the SSP using the expected cost plus a reasonable profit margin approach, under which we forecasted our expected costs of satisfying a performance obligation and then added an appropriate margin for the distinct service. Adjustments to Financial Statements from the Adoption of Accounting Pronouncements The following table presents the effect of the adoption of ASC Topic 606 on our condensed consolidated balance sheet as of December 31, 2018. December 31, 2018 As Reported Under ASC 606 Adjustments ASC 605 Assets Accounts receivable and contract assets, net of allowance of $401 $ 75,934 $ (3,187) $ 72,747 Prepaid expenses and other current assets $ 3,620 $ 1,557 $ 5,177 Deferred tax assets $ 2,944 $ 549 $ 3,493 Liabilities Contract liabilities $ 6,187 $ 5,647 $ 11,834 Accrued expenses $ 17,759 $ (147) $ 17,612 Deferred tax liabilities $ 1,790 $ (1,162) $ 628 Stockholders' equity Accumulated deficit $ (150,098) $ (5,419) $ (155,517) The following table presents the effect of the adoption of ASC Topic 606 on our condensed consolidated statement of comprehensive income for the year ended December 31, 2018. Year Ended December 31, 2018 As Reported Under ASC 606 Adjustments ASC 605 Revenues $ 275,769 $ (4,949) $ 270,820 Operating expenses Direct costs and expenses for advisors 159,921 (502) 159,419 Selling, general and administrative 95,400 — 95,400 Depreciation and amortization 7,771 — 7,771 Operating income 12,677 (4,447) 8,230 Interest income 116 — 116 Interest expense (6,688) — (6,688) Foreign currency transaction gain 7 — 7 Income before taxes 6,112 (4,447) 1,665 Income tax provision (benefit) 435 (1,067) (632) Net income $ 5,677 $ (3,380) $ 2,297 As of December 31, 2018, the Company had $76.6 million of remaining performance obligations, the majority of which are expected to be satisfied within the next year. Contract Balances The timing of revenue recognition, billings, and cash collections results in billed accounts receivables, contract assets, and customer advances and deposits (contract liabilities). Our clients are billed based on the type of arrangement. A portion of our services is billed monthly based on hourly or daily rates. There are also client engagements in which we bill a fixed amount for our services. This may be one single amount covering the whole engagement or several amounts for various phases, functions, or milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits, particularly on our software and implementation contracts, before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet at the end of each reporting period. See the table below for a breakdown of contract assets and contract liabilities. January 1, 2018 December 31, 2018 (as adjusted) Contract assets $ 22,878 $ 18,838 Contract liabilities $ 6,187 $ 6,480 Revenue recognized for the year ended December 31, 2018 that was included in the contract liability balance at January 1, 2018 was $6.2 million and represented primarily revenue from our software and implementation contracts and managed services contracts. Disaggregation of Revenue The following table presents our revenue disaggregated by geographic area for the year ended December 31, 2018. Year Ended Geographic area December 31, 2018 Americas $ 159,108 Europe 95,130 Asia Pacific 21,531 $ 275,769

NET INCOME (LOSS) PER COMMON SH

NET INCOME (LOSS) PER COMMON SHARE	12 Months Ended
	Dec. 31, 2018
NET INCOME (LOSS) PER COMMON SHARE
NET INCOME (LOSS) PER COMMON SHARE	NOTE 4— NET INCOME (LOSS) 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. 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. The following tables set forth the computation of basic and diluted earnings (loss) per share: Years Ended December 31, 2018 2017 Basic: Net income (loss) attributable to ISG $ 5,677 $ (2,130) Weighted average common shares 44,673 43,025 Earnings (loss) per share attributable to ISG $ 0.13 $ (0.05) Diluted: Net income (loss) attributable to ISG $ 5,677 $ (2,130) Basic weighted average common shares 44,673 43,025 Potential common shares 1,394 — Diluted weighted average common shares 46,067 43,025 Diluted earnings (loss) per share attributable to ISG $ 0.12 $ (0.05)

ACCOUNTS RECEIVABLE AND CONTRAC

ACCOUNTS RECEIVABLE AND CONTRACT ASSETS	12 Months Ended
	Dec. 31, 2018
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS	NOTE 5—ACCOUNTS RECEIVABLE AND CONTRACT ASSETS Accounts receivable and contract assets, net of valuation allowance, consisted of the following: December 31, 2018 2017 Accounts receivable $ 52,935 $ 53,405 Contract assets 22,878 17,271 Receivables from related parties 121 148 $ 75,934 $ 70,824 The Company has $1.3 million of accounts receivable outstanding with a U.S. state government that is greater than one year past due as of December 31, 2018. The Company is currently pursuing these past due receivables and expects that payment will be made within the next year. The company has an enforceable right to payment and satisfied all performance requirements.

FURNITURE, FIXTURES AND EQUIPME

FURNITURE, FIXTURES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2018
FURNITURE, FIXTURES AND EQUIPMENT
FURNITURE, FIXTURES AND EQUIPMENT	NOTE 6—FURNITURE, FIXTURES AND EQUIPMENT Furniture, fixtures and equipment consisted of the following: Estimated December 31, Useful Lives 2018 2017 Computer hardware, software and other office equipment to years $ 5,873 $ 6,250 Furniture, fixtures and leasehold improvements to years 4,921 2,715 Internal-use software and development costs to years 7,506 6,969 Accumulated depreciation (11,664) (10,705) $ 6,636 $ 5,229 Depreciation expense was $2.7 million and $3.2 million for the years ended December 31, 2018 and 2017, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2018
INTANGIBLE ASSETS
INTANGIBLE ASSETS	NOTE 7—INTANGIBLE ASSETS The carrying amount of intangible assets, net of accumulated amortization and impairment charges, as of December 31, 2018 and 2017 consisted of the following: 2018 Gross Carrying Accumulated Currency Net Book Amount Amortization impact Value Amortizable intangibles: Customer relationships $ $ (60,256) $ (112) $ 13,355 Noncompete agreements (5,812) 1 141 Software 1,500 (1,500) — — Backlog (4,981) (21) — Databases 13,218 (5,908) (184) 7,126 Trademark and trade names (1,250) — — Intangibles $ $ (79,707) $ (316) $ 20,622 2017 Gross Carrying Accumulated Currency Net Book Amount Amortization impact Value Amortizable intangibles: Customer relationships $ $ (55,844) $ (105) $ Noncompete agreements (5,754) 1 Software (1,520) (63) — Backlog (4,981) (21) — Databases (5,475) (98) Trademark and trade names (1,101) — Intangibles $ $ $ $ Amortization expense was $5.0 million and $9.5 million for the years ended December 31, 2018 and 2017, respectively. The estimated future amortization expense subsequent to December 31, 2018, is as follows: 2019 $ 4,022 2020 3,417 2021 2,190 2022 1,731 2023 1,480 Thereafter 7,782 $ 20,622

GOODWILL

GOODWILL	12 Months Ended
	Dec. 31, 2018
GOODWILL
GOODWILL	NOTE 8—GOODWILL The changes in the carrying amount of goodwill for the year ended December 31, 2018 and 2017 are as follows: 2018 2017 Balance as of January 1 Goodwill $ 85,786 $ 86,429 Foreign currency impact (167) (489) Net balance as of January 1 85,619 85,940 Adjustment — (643) Foreign currency impact (230) 322 (230) (321) Balance as of December 31 Goodwill 85,786 86,429 Adjustment — (643) Foreign currency impact (397) (167) Net balance as of December 31 $ 85,389 $ 85,619

ACCRUED EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2018
ACCRUED EXPENSES
ACCRUED EXPENSES	NOTE 9—ACCRUED EXPENSES The components of accrued liabilities at December 31, 2018 and 2017 are as follows: December 31, 2018 2017 Accrued payroll and vacation $ 3,697 $ 7,741 Accrued corporate and payroll related taxes 4,839 4,657 Contingent consideration—current 1,703 2,365 Other 7,520 6,723 $ 17,759 $ 21,486

FINANCING ARRANGEMENTS AND LONG

FINANCING ARRANGEMENTS AND LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2018
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
FINANCING ARRANGEMENTS AND LONG-TERM DEBT	NOTE 10—FINANCING ARRANGEMENTS AND LONG‑TERM DEBT Long‑term debt consists of the following: December 31, 2018 2017 Senior secured credit facility $ 99,113 $ 109,500 Note payable — 7,038 Compass convertible notes — 211 Debt discount — (74) Debt issuance costs (1,651) (2,338) 97,462 114,337 Less current installments on long term debt 8,250 15,499 Long-term debt $ 89,212 $ 98,838 Aggregate annual maturities of debt obligations by calendar year, are as follows: Debt 2019 $ 8,250 2020 11,000 2021 79,863 $ 99,113 On December 1, 2016, the Company amended and restated its senior secured credit facility to include a $110.0 million term facility and a $30.0 million revolving facility (the “2016 Credit Agreement”). The material terms under the 2016 Credit Agreement are as follows:  Each of the term loan facility and revolving credit facility has a maturity date of December 1, 2021 (the “Maturity Date”).  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.  At the Company’s option, the credit facility bears interest at a rate per annum equal to either (i) the “Base Rate” (which is the highest of (a) the rate publicly announced from time to time by the administrative agent as its “prime rate”, (b) the Federal Funds Rate plus 0.5% per annum and (c) the Eurodollar Rate, plus 1.0%), plus the applicable margin (as defined below) or (ii) Eurodollar Rate (adjusted for maximum reserves) as determined by the Administrative Agent, plus the applicable margin. The applicable margin is adjusted quarterly based upon the Company’s quarterly leverage ratio.  The Term Loan is repayable in four consecutive quarterly installments of $1,375,000 each, that commenced March 31, 2017, followed by eight consecutive quarterly installments in the amount of $2,062,500 each, that commenced March 31, 2018, followed by seven consecutive quarterly installments of $2,750,000 each, commencing March 31, 2020 and a final payment of the outstanding principal amount of the Term Loan on the Maturity Date.  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), transactions 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. · The senior secured credit facility contains customary events of default, including cross-default to other material agreements, judgment default and change of control. On February 10, 2017, as required by the 2016 Credit Agreement, the Company entered into an agreement to cap the interest rate at 4% on the LIBOR component of its borrowings under the term loan facility until December 31, 2019. This interest rate cap was not designated for hedging or speculative purposes. The expense related to this interest rate cap was not material. As of December 31, 2018, the total principal outstanding under the term loan facility and revolving credit facility was $95.1 million and $4.0 million, respectively. The effective interest rate for the term loan facility and revolving credit facility as of December 31, 2018 was 5.5% and 5.3%, respectively. Alsbridge Notes On December 1, 2016, as part of the merger consideration for the acquisition of Alsbridge, we issued an aggregate of $7.0 million in unsecured subordinated promissory notes (the “Alsbridge Notes”). The Alsbridge Notes accrued interest on the principal amount daily at a rate of 2.0%. At maturity, on September 4, 2018, we paid off the full $7.0 million of principal and $0.2 million of interest outstanding under the Alsbridge Notes.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 11—COMMITMENTS AND CONTINGENCIES The Company is involved in certain legal proceedings arising in the ordinary course of business. Management, after review and consultation with legal counsel, believes the ultimate success of parties of the legal proceedings is remote and the ultimate aggregate liability, if any, resulting from such proceedings will not be material to the financial position of the Company. Employee Retirement Plans For the fiscal years ended December 31, 2018 and 2017, we contributed $2.4 million and $1.5 million, respectively, to the 401(k) plan. Leases The Company leases its office space and office equipment under long‑term operating lease agreements which expire at various dates through August 2026. Under the operating leases, the Company pays certain operating expenses relating to the office equipment, leased property and monthly base rent. Aggregate future minimum payments under noncancelable leases with initial or remaining terms of one year or more consist of the following at December 31, 2018: Operating Leases 2019 $ 3,034 2020 2,654 2021 1,808 2022 1,218 2023 925 Thereafter 1,795 Total minimum lease payments $ 11,434 The Company’s rental expense for operating leases was $3.3 million and $3.2 million, in 2018 and 2017, respectively. Saugatuck Contingent Consideration During the year ended December 31, 2018, the Company reversed the remaining $0.3 million contingent consideration liability related to the acquisition of Saugatuck as the related earn-out payment is no longer expected. The Company paid $0.3 million in April 2018 related to 2017 performance, of which 50% was paid with shares of ISG common stock. Experton Contingent Consideration As of December 31, 2018, the Company has recorded a liability of $0.3 million representing the estimated fair value of contingent consideration related to the acquisition of Experton which is classified as current and included in accrued expenses on the consolidated balance sheet. The Company paid $0.5 million in April 2018 related to 2017 performance, of which 50% was paid with shares of ISG common stock. TracePoint Contingent Consideration As of December 31, 2018, the Company has recorded a liability of $1.4 million representing the estimated fair value of contingent consideration related to the acquisition of TracePoint which is classified as current and included in accrued expenses on the consolidated balance sheet. The Company paid $1.6 million in April 2018 related to 2017 performance, of which 50% was paid with shares of ISG common stock.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 12—RELATED PARTY TRANSACTIONS From time to time, the Company may have receivables and payables with employees and shareholders. The Company had outstanding receivables from related parties, including shareholders, totaling $0.1 million as of December 31, 2018 and 2017, respectively, and no outstanding payables. These transactions related to personal withholding taxes paid on behalf of expatriate employees.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2018
INCOME TAXES
INCOME TAXES	NOTE 13—INCOME TAXES The components of income before income taxes for the years ended December 31, 2018 and 2017 consists of the following: Years Ended December 31, 2018 2017 Domestic $ (6,998) $ (6,981) Foreign 13,110 9,081 Total income before income taxes $ 6,112 $ 2,100 The components of the 2018 and 2017 income tax provision are as follows: Years Ended December 31, 2018 2017 Current: Federal $ (3,378) $ 1,259 State 575 608 Foreign 3,681 3,006 Total current provision 878 4,873 Deferred: Federal (268) (268) State (237) (297) Foreign 62 (110) Total deferred benefit (443) (675) Total $ 435 $ 4,198 The differences between the effective tax rates reflected in the total provision for income taxes and the U.S. federal statutory rate of 21% for the year ended December 31, 2018 and 35% for the year ended December 31, 2017 were as follows: Years Ended December 31, 2018 2017 Tax provision computed at 21% in 2018 and 35% in 2017 $ 1,284 $ 735 Nondeductible expenses 372 445 State income taxes, net of federal benefit 239 94 Tax impact of foreign operations 1,941 602 Valuation allowances release (2,238) (344) Net increase (decrease) of uncertain tax positions (1) (2,818) 389 Tax law change impact on deferred taxes — 1,471 Tax law change impact on transition tax 1,642 601 Other 13 205 Income tax provision $ 435 $ 4,198 Effective income tax rates 7.1 % 199.9 % ________________________________________ (1) During the years ended December 31, 2018 and 2017, the Company reversed an unrealized tax benefit liability of $0.9 million and $0.5 million, respectively, established at the time of the acquisition of Alsbridge. An associated tax indemnity receivable was also reversed and recorded in selling, general and administrative expense. On December 22, 2017, the Tax Cuts and Jobs Act was enacted. The company completed its evaluation of the impact of the new law in the fourth quarter of 2018 and recognized an additional deferred tax liability and tax expense of $1.6 million associated with repatriation of unremitted foreign earnings as required under the new tax law (“transition tax”). The company recorded this amount consistent with its indefinite reinvestment assertion. On January 15, 2019, the IRS finalized regulations that govern the transition tax. We are in the process of analyzing these regulations. We do not expect any material impact to our financial statements as a consequence of the final regulations. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows: December 31, 2018 2017 Noncurrent deferred tax asset Compensation related expenses $ 2,441 $ 2,138 Foreign currency translation 2,491 2,020 U.S. foreign tax credit carryovers 811 1,478 Foreign net operating loss carryovers 5,482 6,208 Accruals and reserves 814 686 Other 442 475 Valuation allowance for deferred tax assets (4,209) (6,543) Total noncurrent deferred tax asset 8,272 6,462 Noncurrent deferred tax liability Depreciable assets (486) (277) Prepaids (426) (481) Intangible assets (1,436) (2,040) Investment in foreign subsidiaries (2,975) (1,143) Foreign earnings distribution taxes (1,439) (1,119) Foreign intangibles and reserves (356) (450) Total noncurrent deferred tax liability (7,118) (5,510) Net noncurrent deferred tax asset 1,154 952 Net deferred tax asset $ 1,154 $ 952 A valuation allowance was established at December 31, 2018 and 2017 due to estimates of future utilization of net operating loss carryovers in the U.S. and certain foreign jurisdictions, derived primarily from acquisitions and recorded through purchase accounting. The valuation allowance at December 31, 2018 and 2017 also includes a full valuation for the Company’s foreign tax credit carryovers and foreign taxes on its controlled foreign corporation. Uncertain tax positions Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more‑likely‑than‑not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more‑likely‑than‑not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more‑likely‑than‑not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. It is the Company’s policy to accrue for interest and penalties related to its uncertain tax positions within income tax expense. A tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period is as follows: December 31, 2018 2017 Balance, beginning of year $ 4,050 $ 3,033 Additions as a result of tax positions taken during the current period 145 774 Reductions as a result of tax positions taken during the current period (1,295) — Additions as a result of tax positions taken during a prior period — 630 Reductions as a result of lapse of statute (1,425) (387) Balance, end of year $ 1,475 $ 4,050 We do not expect our unrecognized tax benefits to significantly change in the next twelve months. The Company has recognized through income tax expense approximately $0.8 million of interest and penalties related to uncertain tax positions. The amount of unrecognized tax benefit, if recognized, that would impact the effective tax rate is $1.5 million. With few exceptions, the Company is no longer subject to U.S. federal, state, local, or non‑U.S. income tax examinations by tax authorities for years before 2011.

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS	12 Months Ended
	Dec. 31, 2018
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS	NOTE 14—STOCK‑BASED COMPENSATION PLANS The Amended and Restated 2007 Equity and Incentive Award Plan (“Incentive Plan”) and Amended and Restated 2007 Employee Stock Purchase Plan (“ESPP”) were approved by the Company’s stockholders at our 2014 annual meeting with a subsequent amendment to the Incentive Plan approved by the Company’s stockholders at our 2017 annual meeting as discussed below. Subject to the terms of the Incentive Plan, the Incentive Plan authorizes the grant of awards, which awards may be made in the form of (i) nonqualified stock options; (ii) stock options intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code (stock options described in clause (i) and (ii), “options”); (iii) stock appreciation rights (“SARs”); (iv) restricted stock and/or restricted stock units; (v) other stock based awards; (vi) performance-based awards, which are equity awards or incentive awards intended to qualify for full tax deductibility by the company under Code Section 162 (m); and (vii) incentive awards, a cash-denominated award earnable by achievement of performance goals. The issuance of shares or the payment of cash upon the exercise of an award or in consideration of the cancellation or termination of an award shall reduce the total number of shares available under the Incentive Plan, as applicable. The provisions of each award will vary based on the type of award granted and will be specified by the Compensation Committee of the Board of Directors. Those awards which are based on a specific contractual term will be granted with a term not to exceed ten years. The SARs granted under the Incentive Plan are granted with an exercise price equal to the fair market value of the Common Shares at the time the SARs are granted. At the 2017 Annual Meeting, our stockholders approved an amendment to the Incentive Plan to increase the number of shares of common stock available for issuance under the Incentive Plan by 5,300,000 shares (the “Incentive Plan Amendment”). As of December 31, 2018, there were 3,628,021 and 440,304 shares available for grant under the amended and restated Incentive Plan and ESPP, respectively. The Company recognized $9.9 million and $7.4 million in employee stock‑based compensation expense during the years ended December 31, 2018 and 2017, respectively. This expense was recorded in selling, general and administrative in the consolidated statement of comprehensive income. Restricted Share Awards/Units The Incentive Plan provides for the granting of restricted share awards (“RSA”) or restricted share units (“RSU”), the vesting of which is subject to conditions and limitations established at the time of the grant. Upon the grant of an RSA, the participant has the rights of a shareholder, including but not limited to the right to vote such shares and the right to receive any dividends paid on such shares. Recipients of RSU awards will not have the rights of a shareholder of the Company until such date as the Common Shares are issued or transferred to the recipient. If the employee retires (at the normal retirement age stated in the applicable retirement plan or applicable law, if there is a mandatory retirement age), the restricted shares continue to vest on the same schedule as if the employee remained employed with the Company. Upon a termination of employment due to employee’s death or permanent disability, the restricted shares become 100% vested. Dividends accrue and will be paid if and when the restricted shares vest. The Company also granted RSUs to specific employees which have the following characteristics:  Performance‑Based RSU Vesting (EBITDA): Provided the employee continues to be employed through specific date set forth in the award, the RSUs will vest on such date if specific financial performance is met, otherwise the RSUs will be forfeited.  Time‑Based RSU Vesting: So long as the employee continues to be employed through the fourth anniversary of the grant date, the RSUs will become 100% vested on such date. If an employee’s employment is terminated (i) at any time during the vesting period due to the employee’s death, disability or retirement prior to the applicable vesting date or (ii) without cause by the Company after 50% of the relevant period has elapsed, then the RSUs will vest pro rata based on the period of time worked relative to such period. However, no shares will be distributed until the applicable pro rata vesting date (and, in the case of the Performance‑Based RSUs, only if and to the extent that the performance target is achieved). In all other terminations occurring prior to the applicable vesting date, the RSUs will expire. Pursuant to the terms of the Incentive Plan, in the event of a change in control, the Compensation Committee of the Board of Directors may accelerate vesting of the outstanding awards of RSUs then held by participants. All RSUs will be payable in shares of the Company’s common stock immediately upon vesting. No dividend equivalents will be paid with respect to any RSUs. As part of the Incentive Plan Amendment, if approved by our stockholders, dividends/dividend equivalents may be paid or credited on other stock-based awards (such as restricted stock units), but those dividends/dividend equivalents must be subject to the same vesting (or more stringent vesting) than the vesting applicable to the underlying awards. The fair value of RSAs and RSUs is determined based on the closing price of the Company’s shares on the grant date. The total fair value is amortized to expense on a straight‑line basis over the vesting period. There have been no activities for RSAs since December 31, 2011 and none are currently outstanding. A summary of the status of the Company’s RSUs issued under its Incentive Plan as of December 31, 2018 and changes during the years then ended, is presented below: Weighted- Average Grant Date RSU Fair Value Non-vested at December 31, 2016 3,707 $ 3.91 Granted 2,778 $ 3.60 Vested (1,781) $ 3.90 Forfeited (548) $ 3.83 Non-vested at December 31, 2017 4,156 $ 3.72 Granted 2,967 $ 4.14 Vested (2,104) $ 3.68 Forfeited (262) $ 4.13 Non-vested at December 31, 2018 4,757 $ 3.98 The total fair value of RSUs vested during the years ended December 31, 2018 and 2017 was $7.7 million and $6.9 million, respectively. As of December 31, 2018, there was $10.0 million of unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted‑average period of 2.0 years. Employee Stock Purchase Plan The Company uses the Black‑Scholes option pricing model to estimate the fair value of shares expected to be issued under the Company’s employee stock purchase plan. The ESPP provides that a total of 1.2 million shares of Common Stock are reserved for issuance under the plan. The ESPP, which is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code, is implemented utilizing three-month offerings with purchases occurring at three-month intervals. The ESPP administration is overseen by the Company’s Compensation Committee. Employees are eligible to participate if they are employed by the Company for at least 20 hours per week and more than five months in a calendar year. The ESPP permits eligible employees to purchase Common Stock through payroll deductions, ranging from one to ten percent of their eligible earnings subject to IRS regulated cap of $25,000. The price of Common Stock purchased under the ESPP is 90% of the fair market value of the Common Stock on the applicable purchase date. Employees may end their participation in an offering at any time during the offering period, and participation ends automatically upon termination of employment. The Compensation Committee may at any time amend or terminate the ESPP, except that no such amendment or termination may adversely affect shares previously granted under the ESPP. The Company may issue new shares for the ESPP using treasury shares or newly issued shares. For the year ended December 31, 2018, the Company issued 212,436 shares for the ESPP. There were 440,304 shares available for purchase at December 31, 2018 under the ESPP.

SEGMENT AND GEOGRAPHICAL INFORM

SEGMENT AND GEOGRAPHICAL INFORMATION	12 Months Ended
	Dec. 31, 2018
SEGMENT AND GEOGRAPHICAL INFORMATION
SEGMENT AND GEOGRAPHICAL INFORMATION	NOTE 15—SEGMENT AND GEOGRAPHICAL INFORMATION The Company operates in one segment, fact‑based sourcing advisory services. The Company operates principally in the Americas, Europe, and Asia Pacific. The Company’s foreign operations are subject to local government regulations and to the economic and political uncertainties of those areas. Geographical information for the segment is as follows: Years Ended December 31, 2018 2017 Revenues Americas (1) $ 159,108 $ 161,845 Europe (2) 95,130 82,910 Asia Pacific (3) 21,531 24,799 $ 275,769 $ 269,554 Fixed assets Americas $ 5,319 $ 3,495 Europe 1,162 1,390 Asia Pacific 155 344 $ 6,636 $ 5,229 (1) Substantially all relates to operations in the United States. (2) Includes revenues from operations in Germany of $47.2 million and $40.0 million in 2018 and 2017, respectively. Includes revenues from operations in the United Kingdom of $18.6 million and $14.8 million in 2018 and 2017, respectively. (3) Includes revenues from operations in Australia of $17.8 million and $18.6 million in 2018 and 2017, respectively. 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 or any other measure or metric, other than consolidated, for the purposes of making operating decisions or allocating resources.

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2018
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	INFORMATION SERVICES GROUP, INC. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Charges to Balance at Beginning Costs and Additions/ End of Description of Period Expenses (Deductions) Period Year ended December 31, 2018 Allowance for doubtful accounts $ 503 231 (333) $ 401 Allowance for tax valuation $ 6,543 (2,850) 516 $ 4,209 Year ended December 31, 2017 Allowance for doubtful accounts $ 494 351 (342) $ 503 Allowance for tax valuation $ 6,802 572 (831) $ 6,543

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly‑owned subsidiaries. These consolidated financial statements and footnotes are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, references to the Company include ISG and its consolidated subsidiaries.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP 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 revenue recognition guidance for contracts in which controls is transferred to the customer over time affect the amounts of revenues, expenses, contract assets and contract liabilities. 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 and definite lived intangible assets, depreciation expense, fair value assumptions in analyzing goodwill, income taxes and deferred tax asset valuation, and the valuation of stock-based compensation.
Business Combinations	Business Combinations We have acquired businesses critical to the Company’s long‑term growth strategy. Results of operations for acquisitions are included in the accompanying consolidated statement of comprehensive income from the date of acquisition. Acquisitions are accounted for using the purchase method of accounting and the purchase price is allocated to the net assets acquired based upon their estimated fair values at the date of acquisition. The excess of the purchase price over the net assets was recorded as goodwill. Acquisition-related costs are expensed as incurred and recorded in selling, general and administrative expenses.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents, including certain money market accounts. The Company principally maintains its cash in money market and bank deposit accounts in the United States of America which typically exceed applicable insurance limits. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents.
Restricted Cash	Restricted Cash Restricted cash consists of cash and cash equivalents which the Company has committed to fulfill certain obligations and are not available for general corporate purposes.
Accounts Receivable, Contract Assets and Allowance for Doubtful Accounts	Accounts Receivable, Contract Assets and Allowance for Doubtful Accounts Our trade receivables primarily consist of amounts due for services already performed via fixed fee or time and materials arrangements. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of clients to pay fees or for disputes that affect its ability to fully collect billed accounts receivable. The allowance for these risks is prepared by reviewing the status of all accounts and recording reserves on a specific identification method based on previous experiences and historical bad debts. However, our actual experience may vary significantly from these estimates. If the financial condition of our clients were to deteriorate, resulting in their inability or unwillingness to pay their invoices, we may need to record additional allowances or write‑offs in future periods. To the extent the provision relates to a client’s inability or unwillingness to make required payments, the provision is recorded as bad debt expense, which is classified within selling, general and administrative expense in the accompanying consolidated statement of comprehensive income. The provision for unbilled services is recorded as a reduction to revenues to the extent the provision relates to fee adjustments and other discretionary pricing adjustments.
Prepaid Expenses and Other Assets	Prepaid Expenses and Other Assets Prepaid expenses and other assets consist primarily of prepaid expenses for insurance, conferences and deposits for facilities, programs and promotion items.
Furniture, Fixtures and Equipment, net	Furniture, Fixtures and Equipment, net Furniture, fixtures and equipment is recorded at cost. Depreciation is computed by applying the straight‑line method over the estimated useful life of the assets, which ranges from three to five years. Leasehold improvements are depreciated over the lesser of the useful life of the underlying asset or the lease term, which generally ranges from three to five years. Expenditures for renewals and betterments are capitalized. Repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any associated gain or loss thereon is reflected in the accompanying consolidated statement of comprehensive income.
Internal-Use Software and Website Development Costs	Internal‑Use Software and Website Development Costs The Company capitalizes internal‑use software and website development costs and records these amounts within furniture, fixtures and equipment. Accounting standards require that certain costs related to the development or purchase of internal‑use software and systems as well as the costs incurred in the application development stage related to its website be capitalized and amortized over the estimated useful life of the software or system. They also require that costs related to the preliminary project stage, data conversion and post implementation/operation stage of an internal‑use software development project be expensed as incurred. During the years ended December 31, 2018 and 2017, the Company capitalized $0.5 million and $1.3 million, respectively, of costs associated with system and website development.
Goodwill	Goodwill Our goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired at the date of acquisition. Goodwill is not amortized but rather tested for impairment at least annually in accordance with accounting and disclosure requirements for goodwill and other indefinite lived intangible assets. This test is performed by us during our fourth fiscal quarter or more frequently if we believe impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value of the reporting unit is less than its carrying amount. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than their carrying amounts, an impairment loss is recognized in an amount equal to the difference. Subsequent increases in value are not recognized in the financial statements. The Company adopted Accounting Standards Update (“ASU”) 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" effective December 30, 2017 which has eliminated Step 2 from the goodwill impairment test. Under this update, if an impairment is identified, an entity should record the goodwill impairment as an amount resulting from the comparison of the fair value of a reporting unit with its carrying amount. There was no impairment of goodwill during the years ended December 31, 2018 and 2017, nor were any indicators identified in 2017 or 2018 that would suggest that it is more likely than not that the Company’s reporting unit is impaired.
Long-Lived Assets	Long‑Lived Assets Long lived assets, excluding goodwill and indefinite lived intangibles, to be held and used by the Company are reviewed to determine whether any significant change in the long-lived asset’s physical condition, a change in industry conditions or a reduction in cash flows associated with the use of the long-lived asset. If these or other factors indicate the carrying amount of the asset may not be recoverable, the Company determines whether impairment has occurred through the use of an undiscounted cash flow analysis at the asset group level, which is the lowest level for which identifiable cash flows exist that are separately identifiable from other cash flows. If impairment has occurred, the Company recognizes a loss for the difference between the carrying amount and the fair value of the asset group. The fair value of the asset group is measured using market prices or, in the absence of market prices, an estimate of discounted cash flows. Cash flows are generally discounted at an interest rate commensurate with our weighted average cost of capital. Assets are classified as held for sale when the Company has a plan for disposal of certain assets and those assets meet the held for sale criteria.
Debt Issuance Costs	Debt Issuance Costs Costs directly incurred in obtaining long‑term financing, typically bank and attorney fees, are deferred and are amortized over the life of the related loan using the effective interest method. Deferred issuance costs are classified as a direct deduction to the long-term debt in the accompanying consolidated balance sheet. Amortization of debt issuance costs is included in interest expense and totaled $0.8 million and $0.9 million for the years ended December 31, 2018 and 2017, respectively.
Revenue Recognition	Revenue Recognition We recognize our revenues for the sale of services and products by applying the following five steps: (1) identify the contract with the customer; (2) identify the performance obligation(s) in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligation(s); and (5) recognize revenue when (or as) the company satisfies the performance obligations. We principally derive revenues from fees for services generated on a project by project basis. Prior to the commencement of a project, we reach agreement with the client on rates for services based upon the scope of the project, staffing requirements and the level of client involvement. It is our policy to obtain written agreements from clients prior to performing services. In these agreements, the clients acknowledge that they will pay based upon the amount of time spent on the project or an agreed upon fee structure. In instances where substantive acceptance provisions are specified in customer contracts, revenues are deferred until all acceptance criteria have been met. Revenues for time and materials contracts are recognized based on the number of hours worked by our advisors at an agreed upon rate per hour and are recognized in the period in which services are performed. Revenues for time and materials contracts are billed monthly, semimonthly or in accordance with the specific contractual terms of each project. Revenues related to fixed fee or capped fee contracts are recognized into revenue as value is delivered to the customer, consistent with the transfer of control to the customer over time. Revenue for these contracts is recognized proportionally over the term of the contract using an input method based on the proportion of labor hours incurred as compared to the total estimated labor hours for the project, which we consider the best available indicator of the pattern and timing in which contract obligations are fulfilled and control transfers to the customer. This percentage is multiplied by the contracted dollar amount of the project to determine the amount of revenue to recognize in an accounting period. The contracted amount used in this calculation typically excludes the amount the client pays for reimbursable expenses. There are situations where the number of hours to complete projects may exceed our original estimate as a result of an increase in project scope or unforeseen events. On a regular basis, we review the hours incurred and estimated total labor hours to complete. The results of any revisions in these estimates are reflected in the period in which they become known. The agreements entered into in connection with a project, whether on a time and materials basis or fixed fee or capped fee basis, typically allow our clients to terminate early due to breach or for convenience with 30 days’ notice. In the event of termination, the client is contractually required to pay for all time, materials and expenses incurred by us through the effective date of the termination. For managed service implementation contracts, revenue is recognized over time as a percentage of hours incurred to date as compared to the total expected hours of the implementation, consistent with the transfer of control to the customer. In addition, from time to time, we enter into agreements with clients that limit our right to enter into business relationships with specific competitors of that client for a specific time period. These provisions typically prohibit us from performing a defined range of services that it might otherwise be willing to perform for potential clients. These provisions are generally limited to six to twelve months and usually apply only to specific employees or the specific project team. We also derive revenues based on negotiating reductions in network costs of companies with the entity’s related service providers and providing other services such as audits of network and communication expenses, and consultation for network architecture. These contracts can be fixed in fees or can be based on the level of savings achieved related to its communications costs. Additionally, these contracts can also have a fixed component and a contingent component that is based on the savings generated by the Company. For network contingency contracts with termination for convenience clauses, revenue is recognized over time due to the existence of provisions for payment for progress incurred to date plus a reasonable profit margin. The contract periods range from a few months to in excess of a year. We also enter into arrangements for the sale of robotics software licenses and related delivery of consulting services at the same time or within close proximity to one another. Such software-related performance obligations include the sale of software licenses and other software-related services. For software and implementation contracts, revenue associated with the software performance obligation is recognized at the point at which the software is installed, while revenue on the implementation service performance obligation is recognized over the software implementation period as a percentage of hours incurred to date as compared to the total expected hours. When we recognize revenues in advance of billing, those revenues are recorded as contract assets. When we receive cash in advance of completing services or earning revenues, those amounts are recorded as contract liabilities.
Reimbursable Expenditures	Reimbursable Expenditures Amounts billed to customers for reimbursable expenditures are included in revenues and the associated costs incurred by the Company are included in direct costs and expenses for advisors in the accompanying consolidated statement of comprehensive income. Non‑reimbursable amounts are expensed as incurred. Reimbursable expenditures totaled $9.8 million and $9.8 million for the years ended December 31, 2018 and 2017, respectively.
Direct Costs and Expenses for Advisors	Direct Costs and Expenses for Advisors Direct costs and expenses for advisors include payroll expenses and advisory fees directly associated with the generation of revenues and other program expenses. Direct costs and expenses for advisors are expensed as incurred. Direct costs and expenses for advisors also include expense accruals for discretionary bonus payments. Bonus accrual levels are adjusted throughout the year based on actual and projected individual and Company performance.
Stock-Based Compensation	Stock‑Based Compensation We grant restricted stock units with a fair value that is determined based on the closing price of our common stock on the date of grant. Such grants generally vest ratably over a four-year period for employees and a three-year period for directors. Stock based compensation expense is recognized ratably over the applicable service period. We follow the provisions of accounting and disclosure requirements for share based payments, including the measurement and recognition of all share-based compensation under the fair value method.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and accounts receivable. The Company places its cash investments with high quality financial institutions. The Company extends credit to its customers based upon an evaluation of the customer’s financial condition and credit history and generally does not require collateral.
Treasury Stock	Treasury Stock The Company makes treasury stock purchases in the open market pursuant to the share repurchase program, which was most recently approved by the Board of Directors on March 9, 2016. Treasury stock is recorded on the consolidated balance sheet at cost as a reduction of stockholders’ equity. Shares are released from Treasury at original cost on a first‑in, first‑out basis, with any gain on the sale reflected as an adjustment to additional paid‑in capital. Losses are reflected as an adjustment to additional paid‑in capital to the extent of gains previously recognized, otherwise as an adjustment to retained earnings.
Foreign Currency Translation	Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the end of the reporting period. Revenue and expense items are translated at average exchange rates for the reporting period. Resulting translation adjustments are included in the accompanying statement of comprehensive income and accompanying statement of stockholders’ equity as a component of Accumulated Other Comprehensive Loss . The functional currency of the Company and its subsidiaries is the respective local currency. The Company has contracts denominated in foreign currencies and therefore, a portion of the Company’s revenues are subject to foreign currency risks. Transactional currency gains and losses that arise from transactions denominated in currencies other than the functional currencies of our operations are recorded in Foreign Currency Transaction Loss in the accompanying consolidated statement of comprehensive income.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying value of the Company’s cash and cash equivalents, receivables, accounts payable, other current liabilities, and accrued interest approximate fair value. Fair value measurements were applied with respect to our nonfinancial assets and liabilities measured on a nonrecurring basis, which would consist of measurements primarily to goodwill, intangible assets and other long‑lived assets, and assets acquired and liabilities assumed in a business combination. 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. During 2018, there were no transfers of our financial assets between Level 1, Level 2, or Level 3 measures. Our financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated: Basis of Fair Value Measurements 12/31/2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 315 $ - $ - $ 315 Total $ 315 $ - $ - $ 315 Liabilities: Contingent consideration (1) $ - $ - $ 1,703 $ 1,703 $ - $ - $ 1,703 $ 1,703 Basis of Fair Value Measurements 12/31/2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 303 $ - $ - $ 303 Total $ 303 $ - $ - $ 303 Liabilities: Contingent consideration (1) $ - $ - $ 3,698 $ 3,698 $ - $ - $ 3,698 $ 3,698 (1) The short-term portion is included in “accrued expenses.” The long-term portion is included in “Other liabilities.” 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 14.5% to 28.5%. The following table represents the change in the contingent consideration liability during the years ended December 31, 2018 and 2017: Years Ended December 31, 2018 2017 Beginning Balance $ 3,698 $ 6,073 Payments of contingent consideration (2,401) (3,386) Change in value of contingent consideration 356 145 Accretion of contingent consideration 52 826 Unrealized (loss) gain related to currency translation (2) 40 Ending Balance $ 1,703 $ 3,698 The Company’s financial instruments include outstanding borrowings of $99.1 million at December 31, 2018 and $116.7 million at December 31, 2017, which are carried at amortized cost. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair value of the Company’s outstanding borrowings is approximately $98.9 million and $116.5 million at December 31, 2018 and 2017, respectively. 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 5.3% to 5.5%. 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.
Income Taxes	Income Taxes We use the asset and liability method to account for income taxes, including recognition of deferred tax assets and liabilities for the anticipated future tax consequences attributable to differences between financial statement amounts and their respective tax basis. We review our deferred tax assets for recovery. A valuation allowance is established when we believe that it is more likely than not that some portion of its deferred tax assets will not be realized. Changes in the valuation allowance from period to period are included in our tax provision in the period of change. For uncertain tax positions, we use the prescribed model for assessing the financial recognition and measurement of all tax positions taken or expected to be taken in tax returns. This guidance provides clarification on derecognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. Our provision for income taxes also includes the impact of provisions established for uncertain income tax positions, as well as the related interest. In December 2017, the Tax Cuts and Jobs Act (the “TCJ Act”) legislation was enacted. The TCJ Act includes significant changes to the U.S. corporate tax system, including a U.S. federal corporate income tax rate reduction from 35% to 21% and other changes. Accounting Standards Codification 740, Income Taxes, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation was enacted. However, with respect to the TCJ Act, given the significance of the change and the time of year in which it was enacted, guidance was provided that enabled companies to recognize the impacts on a provisional basis. As such, we have accounted for the tax effects as a result of the enactment of the TCJ Act as of December 31, 2017 on a provisional basis and have updated our provisional assessment of the tax effects of the TCJ Act during the year ended December 31, 2018.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“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 has less than fifty leases for which a corresponding right to use asset and lease liability of approximately $10.2 million will be recorded on the balance sheet as of January 1, 2019. The adoption of this guidance will not have a material impact on our results of operations and will have no impact on our cash flows. In August 2016, the FASB issued new guidance intended to reduce diversity in practice in how certain cash receipts and payments are classified in the statement of cash flows, including debt prepayment or extinguishment costs, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, and distributions from certain equity method investees. The guidance became effective for interim and annual periods beginning after December 15, 2017, and we adopted the guidance as of January 1, 2018. The guidance requires application using a retrospective transition method. The adoption of this guidance by the Company did not have a material impact on our results of operations. In August 2018, the FASB issued an update that modifies the disclosure requirements for fair value measurements by removing, modifying or adding disclosures. The guidance is effective for fiscal year beginning after December 15, 2019 and early adoption is permitted. Certain disclosures in the update are applied retrospectively, while others are applied prospectively. The Company is currently evaluating the potential impact of adopting this guidance on its financial statements. In September 2018, the FASB issued new guidance which requires a customer in a cloud computing arrangement to determine which implementation costs to capitalize as assets or expense as incurred. Under the new guidance, capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. This update is effective for annual periods beginning after December 15, 2019, and interim periods within those periods, and early adoption is permitted. The Company is currently evaluating the potential impact of adopting this guidance on its financial statements. In November 2018, the FASB issued guidance to clarify that certain transactions between parties to collaborative arrangements should be accounted for in accordance with FASB revenue guidance when the counterparty is a customer. This guidance also prohibits the presentation of collaborative arrangements as revenues from contracts with customers if the counterparty is not a customer. This guidance, which is required to be applied retrospectively and is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted, is not expected to have an impact on the Company’s consolidated financial statement.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Summary of assets and liabilities measured at fair value on a recurring basis	Basis of Fair Value Measurements 12/31/2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 315 $ - $ - $ 315 Total $ 315 $ - $ - $ 315 Liabilities: Contingent consideration (1) $ - $ - $ 1,703 $ 1,703 $ - $ - $ 1,703 $ 1,703 Basis of Fair Value Measurements 12/31/2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 303 $ - $ - $ 303 Total $ 303 $ - $ - $ 303 Liabilities: Contingent consideration (1) $ - $ - $ 3,698 $ 3,698 $ - $ - $ 3,698 $ 3,698 (1) The short-term portion is included in “accrued expenses.” The long-term portion is included in “Other liabilities.”
Schedule of change in the contingent consideration liability	Years Ended December 31, 2018 2017 Beginning Balance $ 3,698 $ 6,073 Payments of contingent consideration (2,401) (3,386) Change in value of contingent consideration 356 145 Accretion of contingent consideration 52 826 Unrealized (loss) gain related to currency translation (2) 40 Ending Balance $ 1,703 $ 3,698

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Schedule of contract assets and liabilities	January 1, 2018 December 31, 2018 (as adjusted) Contract assets $ 22,878 $ 18,838 Contract liabilities $ 6,187 $ 6,480
Schedule of disaggregation of revenue	Year Ended Geographic area December 31, 2018 Americas $ 159,108 Europe 95,130 Asia Pacific 21,531 $ 275,769
ASU 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Schedule of effect of the adoption of Accounting Standards Update	The cumulative effect of the changes made to our Condensed Consolidated Balance Sheet as of January 1, 2018 for the adoption of ASC Topic 606 was as follows: As of January 1, 2018 As Previously Reported As Adjusted Under ASC 605 Adjustments for ASC 606 Assets Accounts receivables and contract assets, net of allowance of $503 $ 70,824 $ 1,468 $ 72,292 Prepaid expenses and other current assets $ 4,467 $ (1,071) $ 3,396 Deferred tax assets $ 2,521 $ (549) $ 1,972 Liabilities Contract liabilities $ 8,898 $ (2,418) $ 6,480 Accrued expenses $ 21,486 $ 132 $ 21,618 Deferred tax liabilities $ 1,569 $ 95 $ 1,664 Stockholders' equity Accumulated deficit $ (157,814) $ 2,039 $ (155,775) The following table presents the effect of the adoption of ASC Topic 606 on our condensed consolidated balance sheet as of December 31, 2018. December 31, 2018 As Reported Under ASC 606 Adjustments ASC 605 Assets Accounts receivable and contract assets, net of allowance of $401 $ 75,934 $ (3,187) $ 72,747 Prepaid expenses and other current assets $ 3,620 $ 1,557 $ 5,177 Deferred tax assets $ 2,944 $ 549 $ 3,493 Liabilities Contract liabilities $ 6,187 $ 5,647 $ 11,834 Accrued expenses $ 17,759 $ (147) $ 17,612 Deferred tax liabilities $ 1,790 $ (1,162) $ 628 Stockholders' equity Accumulated deficit $ (150,098) $ (5,419) $ (155,517) The following table presents the effect of the adoption of ASC Topic 606 on our condensed consolidated statement of comprehensive income for the year ended December 31, 2018. Year Ended December 31, 2018 As Reported Under ASC 606 Adjustments ASC 605 Revenues $ 275,769 $ (4,949) $ 270,820 Operating expenses Direct costs and expenses for advisors 159,921 (502) 159,419 Selling, general and administrative 95,400 — 95,400 Depreciation and amortization 7,771 — 7,771 Operating income 12,677 (4,447) 8,230 Interest income 116 — 116 Interest expense (6,688) — (6,688) Foreign currency transaction gain 7 — 7 Income before taxes 6,112 (4,447) 1,665 Income tax provision (benefit) 435 (1,067) (632) Net income $ 5,677 $ (3,380) $ 2,297

NET INCOME (LOSS) PER COMMON _2

NET INCOME (LOSS) PER COMMON SHARE (Tables)	12 Months Ended
	Dec. 31, 2018
NET INCOME (LOSS) PER COMMON SHARE
Schedule of computation of basic and diluted earnings (loss) per share	Years Ended December 31, 2018 2017 Basic: Net income (loss) attributable to ISG $ 5,677 $ (2,130) Weighted average common shares 44,673 43,025 Earnings (loss) per share attributable to ISG $ 0.13 $ (0.05) Diluted: Net income (loss) attributable to ISG $ 5,677 $ (2,130) Basic weighted average common shares 44,673 43,025 Potential common shares 1,394 — Diluted weighted average common shares 46,067 43,025 Diluted earnings (loss) per share attributable to ISG $ 0.12 $ (0.05)

ACCOUNTS RECEIVABLE AND CONTR_2

ACCOUNTS RECEIVABLE AND CONTRACT ASSETS (Tables)	12 Months Ended
	Dec. 31, 2018
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS
Schedule of accounts receivable and contract assets, net of valuation allowance	December 31, 2018 2017 Accounts receivable $ 52,935 $ 53,405 Contract assets 22,878 17,271 Receivables from related parties 121 148 $ 75,934 $ 70,824

FURNITURE, FIXTURES AND EQUIP_2

FURNITURE, FIXTURES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2018
FURNITURE, FIXTURES AND EQUIPMENT
Schedule of furniture, fixtures and equipment	Estimated December 31, Useful Lives 2018 2017 Computer hardware, software and other office equipment to years $ 5,873 $ 6,250 Furniture, fixtures and leasehold improvements to years 4,921 2,715 Internal-use software and development costs to years 7,506 6,969 Accumulated depreciation (11,664) (10,705) $ 6,636 $ 5,229

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2018
INTANGIBLE ASSETS
Schedule of carrying amount of intangible assets, net of accumulated amortization and impairment charges	2018 Gross Carrying Accumulated Currency Net Book Amount Amortization impact Value Amortizable intangibles: Customer relationships $ $ (60,256) $ (112) $ 13,355 Noncompete agreements (5,812) 1 141 Software 1,500 (1,500) — — Backlog (4,981) (21) — Databases 13,218 (5,908) (184) 7,126 Trademark and trade names (1,250) — — Intangibles $ $ (79,707) $ (316) $ 20,622 2017 Gross Carrying Accumulated Currency Net Book Amount Amortization impact Value Amortizable intangibles: Customer relationships $ $ (55,844) $ (105) $ Noncompete agreements (5,754) 1 Software (1,520) (63) — Backlog (4,981) (21) — Databases (5,475) (98) Trademark and trade names (1,101) — Intangibles $ $ $ $
Schedule of estimated future amortization expense	2019 $ 4,022 2020 3,417 2021 2,190 2022 1,731 2023 1,480 Thereafter 7,782 $ 20,622

GOODWILL (Tables)

GOODWILL (Tables)	12 Months Ended
	Dec. 31, 2018
GOODWILL
Schedule of changes in the carrying amount of goodwill	2018 2017 Balance as of January 1 Goodwill $ 85,786 $ 86,429 Foreign currency impact (167) (489) Net balance as of January 1 85,619 85,940 Adjustment — (643) Foreign currency impact (230) 322 (230) (321) Balance as of December 31 Goodwill 85,786 86,429 Adjustment — (643) Foreign currency impact (397) (167) Net balance as of December 31 $ 85,389 $ 85,619

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2018
ACCRUED EXPENSES
Schedule of components of accrued liabilities	December 31, 2018 2017 Accrued payroll and vacation $ 3,697 $ 7,741 Accrued corporate and payroll related taxes 4,839 4,657 Contingent consideration—current 1,703 2,365 Other 7,520 6,723 $ 17,759 $ 21,486

FINANCING ARRANGEMENTS AND LO_2

FINANCING ARRANGEMENTS AND LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2018
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Schedule of long-term debt	December 31, 2018 2017 Senior secured credit facility $ 99,113 $ 109,500 Note payable — 7,038 Compass convertible notes — 211 Debt discount — (74) Debt issuance costs (1,651) (2,338) 97,462 114,337 Less current installments on long term debt 8,250 15,499 Long-term debt $ 89,212 $ 98,838
Schedule of aggregate annual maturities of debt obligations by calendar year	Debt 2019 $ 8,250 2020 11,000 2021 79,863 $ 99,113

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES
Schedule of aggregate future minimum payments under noncancelable leases	Operating Leases 2019 $ 3,034 2020 2,654 2021 1,808 2022 1,218 2023 925 Thereafter 1,795 Total minimum lease payments $ 11,434

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2018
INCOME TAXES
Schedule of the components of income before income taxes	Years Ended December 31, 2018 2017 Domestic $ (6,998) $ (6,981) Foreign 13,110 9,081 Total income before income taxes $ 6,112 $ 2,100
Schedule of the components of income tax provision	Years Ended December 31, 2018 2017 Current: Federal $ (3,378) $ 1,259 State 575 608 Foreign 3,681 3,006 Total current provision 878 4,873 Deferred: Federal (268) (268) State (237) (297) Foreign 62 (110) Total deferred benefit (443) (675) Total $ 435 $ 4,198
Schedule of the differences between the effective tax rates reflected in the total provision for income taxes and the U.S. federal statutory rate	Years Ended December 31, 2018 2017 Tax provision computed at 21% in 2018 and 35% in 2017 $ 1,284 $ 735 Nondeductible expenses 372 445 State income taxes, net of federal benefit 239 94 Tax impact of foreign operations 1,941 602 Valuation allowances release (2,238) (344) Net increase (decrease) of uncertain tax positions (1) (2,818) 389 Tax law change impact on deferred taxes — 1,471 Tax law change impact on transition tax 1,642 601 Other 13 205 Income tax provision $ 435 $ 4,198 Effective income tax rates 7.1 % 199.9 % ________________________________________ (1) During the years ended December 31, 2018 and 2017, the Company reversed an unrealized tax benefit liability of $0.9 million and $0.5 million, respectively, established at the time of the acquisition of Alsbridge. An associated tax indemnity receivable was also reversed and recorded in selling, general and administrative expense.
Schedule of significant portions of the deferred tax assets and liabilities due to the tax effects of temporary differences	December 31, 2018 2017 Noncurrent deferred tax asset Compensation related expenses $ 2,441 $ 2,138 Foreign currency translation 2,491 2,020 U.S. foreign tax credit carryovers 811 1,478 Foreign net operating loss carryovers 5,482 6,208 Accruals and reserves 814 686 Other 442 475 Valuation allowance for deferred tax assets (4,209) (6,543) Total noncurrent deferred tax asset 8,272 6,462 Noncurrent deferred tax liability Depreciable assets (486) (277) Prepaids (426) (481) Intangible assets (1,436) (2,040) Investment in foreign subsidiaries (2,975) (1,143) Foreign earnings distribution taxes (1,439) (1,119) Foreign intangibles and reserves (356) (450) Total noncurrent deferred tax liability (7,118) (5,510) Net noncurrent deferred tax asset 1,154 952 Net deferred tax asset $ 1,154 $ 952
Schedule of reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period	December 31, 2018 2017 Balance, beginning of year $ 4,050 $ 3,033 Additions as a result of tax positions taken during the current period 145 774 Reductions as a result of tax positions taken during the current period (1,295) — Additions as a result of tax positions taken during a prior period — 630 Reductions as a result of lapse of statute (1,425) (387) Balance, end of year $ 1,475 $ 4,050

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS (Tables)	12 Months Ended
	Dec. 31, 2018
STOCK BASED COMPENSATION PLANS
Summary of the status of the Company's RSUs issued under its Incentive Plan	Weighted- Average Grant Date RSU Fair Value Non-vested at December 31, 2016 3,707 $ 3.91 Granted 2,778 $ 3.60 Vested (1,781) $ 3.90 Forfeited (548) $ 3.83 Non-vested at December 31, 2017 4,156 $ 3.72 Granted 2,967 $ 4.14 Vested (2,104) $ 3.68 Forfeited (262) $ 4.13 Non-vested at December 31, 2018 4,757 $ 3.98

SEGMENT AND GEOGRAPHICAL INFO_2

SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2018
SEGMENT AND GEOGRAPHICAL INFORMATION
Schedule of geographical revenue information for the segment	Years Ended December 31, 2018 2017 Revenues Americas (1) $ 159,108 $ 161,845 Europe (2) 95,130 82,910 Asia Pacific (3) 21,531 24,799 $ 275,769 $ 269,554 Fixed assets Americas $ 5,319 $ 3,495 Europe 1,162 1,390 Asia Pacific 155 344 $ 6,636 $ 5,229 (1) Substantially all relates to operations in the United States. (2) Includes revenues from operations in Germany of $47.2 million and $40.0 million in 2018 and 2017, respectively. Includes revenues from operations in the United Kingdom of $18.6 million and $14.8 million in 2018 and 2017, respectively. (3) Includes revenues from operations in Australia of $17.8 million and $18.6 million in 2018 and 2017, respectively.

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Furniture, Fixtures and Equipment, net to Reimbursable Expenditures (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Internal-Use Software and Website Development Costs
Capitalized costs associated with system and website development	$ 500,000	$ 1,300,000
Goodwill
Impairment of goodwill	0	0
Debt Issuance Costs
Amortization of debt issuance costs	$ 761,000	884,000
Revenue Recognition
Notice period to terminate agreements early due to breach or for convenience	30 days
Reimbursable Expenditures
Reimbursable expenditures	$ 9,800,000	$ 9,800,000
Minimum
Revenue Recognition
Term of provisions	6 months
Maximum
Revenue Recognition
Term of provisions	12 months
Furniture Fixtures And Equipment | Minimum
Furniture, Fixtures and Equipment, net
Estimated useful life of assets	3 years
Furniture Fixtures And Equipment | Maximum
Furniture, Fixtures and Equipment, net
Estimated useful life of assets	5 years
Leasehold Improvements | Minimum
Furniture, Fixtures and Equipment, net
Estimated useful life of assets	3 years
Leasehold Improvements | Maximum
Furniture, Fixtures and Equipment, net
Estimated useful life of assets	5 years

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-Based Compensation (Details) - Restricted Stock	12 Months Ended
	Dec. 31, 2018
Employees
Stock-Based Compensation
Award vesting period	4 years
Directors
Stock-Based Compensation
Award vesting period	3 years

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value of Financial Instruments (Details)	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Fair Value of Financial Instruments
Transfers of financial assets between Level 1 and Level 2			$ 0
Transfers of financial assets between Level 2 and Level 1			0
Transfers of financial assets into Level 3	$ 0
Transfers of financial assets out of Level 3	0
Liabilities:
Contingent consideration	3,698,000	$ 6,073,000	1,703,000	$ 3,698,000
Change in the contingent consideration liability
Beginning Balance	3,698,000	6,073,000
Payment of contingent consideration	(2,401,000)	(3,386,000)
Change in value of contingent consideration	356,000	145,000
Accretion of contingent consideration	52,000	826,000
Unrealized (loss) gain related to currency translation	(2,000)	40,000
Ending Balance	1,703,000	3,698,000
Outstanding borrowings			99,113,000	116,700,000
Fair value of outstanding borrowing			$ 98,900,000	116,500,000
Debt instrument, valuation technique, extensible list			us-gaap:ValuationTechniqueDiscountedCashFlowMember
Debt instrument, measurement input, extensible list			us-gaap:MeasurementInputDiscountRateMember
Minimum
Liabilities:
Contingent consideration, measurement input			0.145
Change in the contingent consideration liability
Debt instrument, measurement input			0.053
Maximum
Liabilities:
Contingent consideration, measurement input			0.285
Change in the contingent consideration liability
Debt instrument, measurement input			0.055
Level 3
Liabilities:
Contingent consideration, valuation technique extensible list			us-gaap:IncomeApproachValuationTechniqueMember
Contingent consideration, measurement input Contingent consideration, measurement input			us-gaap:MeasurementInputDiscountRateMember
Recurring
Assets:
Cash equivalents			$ 315,000	303,000
Total			315,000	303,000
Liabilities:
Contingent consideration	3,698,000	3,698,000	1,703,000	3,698,000
Total			1,703,000	3,698,000
Change in the contingent consideration liability
Beginning Balance	3,698,000
Ending Balance	1,703,000	3,698,000
Recurring | Level 1
Assets:
Cash equivalents			315,000	303,000
Total			315,000	303,000
Recurring | Level 3
Liabilities:
Contingent consideration	3,698,000	3,698,000	1,703,000	3,698,000
Total			$ 1,703,000	$ 3,698,000
Change in the contingent consideration liability
Beginning Balance	3,698,000
Ending Balance	$ 1,703,000	$ 3,698,000

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Percent [Abstract]
U.S. federal corporate income tax rate (as a percent)	21.00%	35.00%

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) - ASU 2016-02 - Forecast adjustment $ in Millions	Jan. 01, 2019USD ($)property
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right to use asset	$ 10.2
Leases liability	$ 10.1
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of leases | property	50

REVENUE - Effect on Balance She

REVENUE - Effect on Balance Sheet (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Revenue
Net increase to opening retained earnings	$ 2,039,000
Assets
Accounts receivables and contract assets, net of allowance	75,934,000	$ 72,292,000	$ 70,824,000
Prepaid expenses and other current assets	3,620,000	3,396,000	4,467,000
Deferred tax assets	2,944,000	1,972,000	2,521,000
Liabilities
Contract liabilities	6,187,000	6,480,000	8,898,000
Accrued expenses	17,759,000	21,618,000	21,486,000
Deferred tax liabilities	1,790,000	1,664,000	1,569,000
Stockholders' equity
Accumulated deficit	(150,098,000)	(155,775,000)	(157,814,000)
Accounts receivables and contract assets, allowances	$ 401,000	503,000	$ 503,000
Practical expedient incremental costs to obtain a contract	true
As Previously Reported Under ASC 605 | ASU 2014-09
Assets
Accounts receivables and contract assets, net of allowance	$ 72,747,000	70,824,000
Prepaid expenses and other current assets	5,177,000	4,467,000
Deferred tax assets	3,493,000	2,521,000
Liabilities
Contract liabilities	11,834,000	8,898,000
Accrued expenses	17,612,000	21,486,000
Deferred tax liabilities	628,000	1,569,000
Stockholders' equity
Accumulated deficit	(155,517,000)	(157,814,000)
Adjustments | ASU 2014-09
Assets
Accounts receivables and contract assets, net of allowance	(3,187,000)	1,468,000
Prepaid expenses and other current assets	1,557,000	(1,071,000)
Deferred tax assets	549,000	(549,000)
Liabilities
Contract liabilities	5,647,000	(2,418,000)
Accrued expenses	(147,000)	132,000
Deferred tax liabilities	(1,162,000)	95,000
Stockholders' equity
Accumulated deficit	$ (5,419,000)	$ 2,039,000

REVENUE - Effect on Statement o

REVENUE - Effect on Statement of comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenue
Revenues	$ 275,769	$ 269,554
Operating expenses
Direct costs and expenses for advisors	159,921	156,630
Selling, general and administrative	95,400	91,046
Depreciation and amortization	7,771	12,721
Operating income	12,677	9,157
Interest income	116	107
Interest expense	(6,688)	(6,821)
Foreign currency transaction gain	7	(343)
Income before taxes	6,112	2,100
Income tax provision (benefit)	435	4,198
Net income (loss)	5,677	$ (2,098)
Remaining performance obligations	76,600
ASU 2014-09 | Adjustments
Revenue
Revenues	(4,949)
Operating expenses
Direct costs and expenses for advisors	(502)
Operating income	(4,447)
Income before taxes	(4,447)
Income tax provision (benefit)	(1,067)
Net income (loss)	(3,380)
ASU 2014-09 | As Previously Reported Under ASC 605
Revenue
Revenues	270,820
Operating expenses
Direct costs and expenses for advisors	159,419
Selling, general and administrative	95,400
Depreciation and amortization	7,771
Operating income	8,230
Interest income	116
Interest expense	(6,688)
Foreign currency transaction gain	7
Income before taxes	1,665
Income tax provision (benefit)	(632)
Net income (loss)	$ 2,297

REVENUE - Contract Balances (De

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
REVENUE
Contract assets	$ 22,878	$ 18,838	$ 17,271
Contract liabilities	6,187	$ 6,480	$ 8,898
Revenue recognized, included in contract liability balance	$ 6,200

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenue
Revenues	$ 275,769	$ 269,554
Americas
Revenue
Revenues	159,108	161,845
Europe
Revenue
Revenues	95,130	82,910
Asia Pacific
Revenue
Revenues	$ 21,531	$ 24,799

NET INCOME (LOSS) PER COMMON _3

NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Basic:
Net income (loss) attributable to ISG	$ 5,677	$ (2,130)
Weighted average common shares	44,673	43,025
Earnings (loss) per share attributable to ISG	$ 0.13	$ (0.05)
Diluted:
Net income (loss) attributable to ISG	$ 5,677	$ (2,130)
Basic weighted average common shares	44,673	43,025
Potential common shares	1,394
Diluted weighted average common shares	46,067	43,025
Diluted earnings (loss) per share attributable to ISG	$ 0.12	$ (0.05)

ACCOUNTS RECEIVABLE AND CONTR_3

ACCOUNTS RECEIVABLE AND CONTRACT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS
Accounts receivable	$ 52,935		$ 53,405
Contract assets	22,878	$ 18,838	17,271
Receivables from related parties	121		148
Accounts and unbilled receivables, Total	75,934	$ 72,292	$ 70,824
Accounts receivable outstanding with a U.S. state government, past due	$ 1,300

FURNITURE, FIXTURES AND EQUIP_3

FURNITURE, FIXTURES AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Furniture, fixtures and equipment
Accumulated depreciation	$ (11,664)	$ (10,705)
Furniture, fixtures and equipment, net	6,636	5,229
Depreciation expense	2,739	3,207
Computer hardware, software and other office equipment
Furniture, fixtures and equipment
Furniture, fixture and equipment, gross	$ 5,873	6,250
Computer hardware, software and other office equipment | Minimum
Furniture, fixtures and equipment
Estimated Useful Lives	2 years
Computer hardware, software and other office equipment | Maximum
Furniture, fixtures and equipment
Estimated Useful Lives	5 years
Furniture, fixtures and leasehold improvements
Furniture, fixtures and equipment
Furniture, fixture and equipment, gross	$ 4,921	2,715
Furniture, fixtures and leasehold improvements | Minimum
Furniture, fixtures and equipment
Estimated Useful Lives	2 years
Furniture, fixtures and leasehold improvements | Maximum
Furniture, fixtures and equipment
Estimated Useful Lives	5 years
Internal-use software and development costs
Furniture, fixtures and equipment
Furniture, fixture and equipment, gross	$ 7,506	$ 6,969
Internal-use software and development costs | Minimum
Furniture, fixtures and equipment
Estimated Useful Lives	3 years
Internal-use software and development costs | Maximum
Furniture, fixtures and equipment
Estimated Useful Lives	5 years

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Intangible assets
Gross Carrying Amount	$ 100,645	$ 100,645
Accumulated Amortization	(79,707)	(74,675)
Currency impact	(316)	(286)
Net Book Value	20,622	25,684
Amortization expense	5,032	9,514
Estimated future amortization expense
2019		4,022
2020		3,417
2021		2,190
2022		1,731
2023		1,480
Thereafter		7,782
Estimated future amortization expense		20,622
Customer relationships
Intangible assets
Gross Carrying Amount	73,723	73,723
Accumulated Amortization	(60,256)	(55,844)
Currency impact	(112)	(105)
Net Book Value	13,355	17,774
Noncompete agreements
Intangible assets
Gross Carrying Amount	5,952	5,952
Accumulated Amortization	(5,812)	(5,754)
Currency impact	1	1
Net Book Value	141	199
Software
Intangible assets
Gross Carrying Amount	1,500	1,583
Accumulated Amortization	(1,500)	(1,520)
Currency impact		(63)
Backlog
Intangible assets
Gross Carrying Amount	5,002	5,002
Accumulated Amortization	(4,981)	(4,981)
Currency impact	(21)	(21)
Databases
Intangible assets
Gross Carrying Amount	13,218	13,135
Accumulated Amortization	(5,908)	(5,475)
Currency impact	(184)	(98)
Net Book Value	7,126	7,562
Trademarks And Trade Names
Intangible assets
Gross Carrying Amount	1,250	1,250
Accumulated Amortization	$ (1,250)	(1,101)
Net Book Value		$ 149

GOODWILL (Details)

GOODWILL (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Changes in the carrying amount of goodwill
Gross balance at the beginning	$ 85,786	$ 86,429
Foreign currency impact	(167)	(489)
Balance at the beginning	85,619	85,940
Adjustments		(643)
Foreign currency impact	(230)	322
Changes during the period	(230)	(321)
Adjustment		(643)
Foreign currency impact	(397)	(167)
Balance at the end	$ 85,389	$ 85,619

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
ACCRUED EXPENSES
Accrued payroll and vacation	$ 3,697		$ 7,741
Accrued corporate and payroll related taxes	4,839		4,657
Contingent consideration—current	1,703		2,365
Other	7,520		6,723
Accrued liabilities	$ 17,759	$ 21,618	$ 21,486

FINANCING ARRANGEMENTS AND LO_3

FINANCING ARRANGEMENTS AND LONG-TERM DEBT - Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Outstanding borrowings	$ 99,113	$ 116,700
Debt discount		(74)
Debt issuance costs	(1,651)	(2,338)
Long-term debt, net	97,462	114,337
Less current installments on long term debt	8,250	15,499
Long-term debt	89,212	98,838
Secured Debt
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Outstanding borrowings	$ 99,113	109,500
Note payable
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Outstanding borrowings		7,038
Convertible Notes Payable
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Outstanding borrowings		$ 211

FINANCING ARRANGEMENTS AND LO_4

FINANCING ARRANGEMENTS AND LONG-TERM DEBT - Annual Maturities of Debt Obligations Tables (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Aggregate annual maturities of debt obligations
2019	$ 8,250
2020	11,000
2021	79,863
Long-term debt, total	$ 99,113	$ 116,700

FINANCING ARRANGEMENTS AND LO_5

FINANCING ARRANGEMENTS AND LONG-TERM DEBT - Narrative (Details)	1 Months Ended			12 Months Ended
	Mar. 31, 2020USD ($)installment	Mar. 31, 2018USD ($)installment	Mar. 31, 2017USD ($)installment	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 01, 2016USD ($)
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Debt issuance costs				$ 1,651,000	$ 2,338,000
Base Rate
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Interest rate basis					Base Rate
Prime Rate
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Interest rate basis					prime rate
Federal Funds Rate
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Interest rate basis					Federal Funds Rate
Applicable margin (as a percent)					0.50%
Eurodollar Rate
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Interest rate basis					Eurodollar Rate
Applicable margin (as a percent)					1.00%
Secured Debt
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Maximum borrowing capacity under senior secured credit facility						$ 110,000,000
Revolving Credit Facility
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Maximum borrowing capacity under senior secured credit facility						$ 30,000,000
Credit Agreement 2016 | Secured Debt
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Number of quarterly installments | installment		8	4
Periodic repayment		$ 2,062,500	$ 1,375,000
Outstanding borrowings				$ 95,100,000
Debt Instrument, Interest Rate, Effective Percentage				5.50%
Debt Instrument, Percentage of Proceeds from Asset Sales Used for Mandatory Repayment of Debt					100.00%
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%
Credit Agreement 2016 | Secured Debt | Scenario Forecast
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Number of quarterly installments | installment	7
Periodic repayment	$ 2,750,000
Credit Agreement 2016 | Revolving Credit Facility
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Outstanding borrowings				$ 4,000,000
Debt Instrument, Interest Rate, Effective Percentage				5.30%
Maximum | Credit Agreement 2016 | Secured Debt | London Interbank Offered Rate L I B O R
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Applicable margin (as a percent)					4.00%

FINANCING ARRANGEMENTS AND LO_6

FINANCING ARRANGEMENTS AND LONG-TERM DEBT - Alsbridge Notes (Details) - Alsbridge - Unsecured subordinated promissory notes - USD ($) $ in Millions	Sep. 04, 2018	Dec. 01, 2016
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Rate of interest (as a percent)		2.00%
Unsecured subordinated promissory notes issued		$ 7
Principal paid off	$ 7
Interest outstanding paid off	$ 0.2

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Employee Retirement Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
COMMITMENTS AND CONTINGENCIES
Contribution under Employee Retirement Plans	$ 2.4	$ 1.5

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Aggregate future minimum payments under noncancelable leases
2019	$ 3,034
2020	2,654
2021	1,808
2022	1,218
2023	925
Thereafter	1,795
Total minimum lease payments	11,434
Rental expense for operating leases	$ 3,300	$ 3,200

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES - Contingent Consideration (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Apr. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Contingent Consideration
Contingent consideration reversed		$ (356)	$ (145)
Contingent acquisition liability		1,703	3,698	$ 6,073
Payment of contingent consideration		1,200	$ 2,665
Saugatuck
Contingent Consideration
Contingent consideration reversed		300
Payment of contingent consideration	$ 300
Percentage of contingent consideration made in shares of common stock	50.00%
Experton
Contingent Consideration
Contingent acquisition liability		300
Payment of contingent consideration	$ 500
Percentage of contingent consideration made in shares of common stock	50.00%
TracePoint
Contingent Consideration
Contingent acquisition liability		$ 1,400
Payment of contingent consideration	$ 1,600
Percentage of contingent consideration made in shares of common stock	50.00%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
RELATED PARTY TRANSACTIONS
Receivables from related parties, including shareholders	$ 121	$ 148
Payable to related parties	$ 0	$ 0

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Income before income taxes
Domestic		$ (6,998)	$ (6,981)
Foreign		13,110	9,081
Income before taxes		6,112	2,100
Current:
Federal		(3,378)	1,259
State		575	608
Foreign		3,681	3,006
Total current provision		878	4,873
Deferred:
Federal		(268)	(268)
State		(237)	(297)
Foreign		62	(110)
Total deferred benefit		(443)	(675)
Total		$ 435	$ 4,198
U.S. federal statutory income tax rate (as a percent)		21.00%	35.00%
Differences between the effective tax rates reflected in the total provision for income taxes and the U.S. federal statutory rate
Tax provision computed at 21% in 2018 and 35% in 2017		$ 1,284	$ 735
Nondeductible expenses		372	445
State income taxes, net of federal benefit		239	94
Tax impact of foreign operations		1,941	602
Valuation allowances release		(2,238)	(344)
Net increase (decrease) of uncertain tax positions (1)		(2,818)	389
Tax law change impact on deferred taxes			1,471
Tax law change impact on transition tax		1,642	601
Other		13	205
Total		$ 435	$ 4,198
Effective income tax rates (as a percent)		7.10%	199.90%
Deferred tax liability	$ 1,600	$ 1,600
Deferred Tax Expenses	1,600
Noncurrent deferred tax asset
Compensation related expenses	2,441	2,441	$ 2,138
Foreign currency translation	2,491	2,491	2,020
U.S. foreign tax credit carryovers	811	811	1,478
Foreign net operating loss carryovers	5,482	5,482	6,208
Accruals and Reserves	814	814	686
Other	442	442	475
Valuation allowance for deferred tax assets	(4,209)	(4,209)	(6,543)
Total noncurrent deferred tax asset	8,272	8,272	6,462
Noncurrent deferred tax liability
Depreciable assets	(486)	(486)	(277)
Prepaids	(426)	(426)	(481)
Intangible assets	(1,436)	(1,436)	(2,040)
Investment in foreign subsidiaries	(2,975)	(2,975)	(1,143)
Foreign earnings distribution taxes	(1,439)	(1,439)	(1,119)
Foreign intangibles and reserves	(356)	(356)	(450)
Total noncurrent deferred tax liability	(7,118)	(7,118)	(5,510)
Net noncurrent deferred tax asset	1,154	1,154	952
Net deferred tax asset	1,154	1,154	952
Reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period
Balance, beginning of year		4,050	3,033
Additions as a result of tax positions taken during the current period		145	774
Reductions as a result of tax positions taken during a prior period		(1,295)
Additions as a result of tax positions taken during a prior period			630
Reductions as a result of lapse of statute		(1,425)	(387)
Balance, end of year	1,475	1,475	4,050
State income tax expense recognized of interest and penalties related to uncertain tax positions		800
Unrecognized tax benefits that would impact the company's effective tax rate	$ 1,500	1,500
Alsbridge
Differences between the effective tax rates reflected in the total provision for income taxes and the U.S. federal statutory rate
Reversal of unrealized tax benefit liability		$ 900	$ 500

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
STOCK-BASED COMPENSATION PLANS
Recognized employee stock-based compensation expense	$ 9,900,000	$ 7,400,000
Employee Stock Purchase Plan
STOCK-BASED COMPENSATION PLANS
Shares available under the plan	1,200,000
Shares available for grant	440,304
Weighted-Average Grant Date Fair Value
Offering period for the plan	3 months
Period of interval between occurrence of purchases	3 months
IRS regulated cap for payroll deduction to purchase common stock	$ 25,000
Purchase price expressed as a percentage of fair market value of common stock (as a percent)	90.00%
Shares issued under ESPP	212,436
Shares available for purchase under ESPP	440,304
Minimum | Employee Stock Purchase Plan
Weighted-Average Grant Date Fair Value
Eligible service period of employees per week to participate in the plan	20 hours
Eligible service period of employees in a calendar year to participate in the plan	5 months
Percentage of employees' eligible earnings as payroll deduction to purchase common stock	1.00%
Maximum | Employee Stock Purchase Plan
Weighted-Average Grant Date Fair Value
Percentage of employees' eligible earnings as payroll deduction to purchase common stock	10.00%
Equity Incentive Plan2007
STOCK-BASED COMPENSATION PLANS
Shares available for grant	3,628,021
Weighted-Average Grant Date Fair Value
Total fair value RSUs vested (in dollars)	$ 7,700,000	$ 6,900,000
Equity Incentive Plan2007 | Maximum
STOCK-BASED COMPENSATION PLANS
Anniversary period from the grant date on which the award will expire	10 years
Equity Incentive Plan2007 | Restricted Stock Units R S U
STOCK-BASED COMPENSATION PLANS
Percentage of relevant period has elapsed for pro rata vesting of the awards	50.00%
RSA and RSU
Non-vested at the beginning of the period (in shares)	4,156,000	3,707,000
Granted (in shares)	2,967,000	2,778,000
Vested (in shares)	(2,104,000)	(1,781,000)
Forfeited (in shares)	(262,000)	(548,000)
Non-vested at the end of the period (in shares)	4,757,000	4,156,000
Weighted-Average Grant Date Fair Value
Non-vested at the beginning of the period (in dollars per share)	$ 3.72	$ 3.91
Granted (in dollars per share)	4.14	3.60
Vested (in dollars per share)	3.68	3.90
Forfeited (in dollars per share)	4.13	3.83
Non-vested at the end of the period (in dollars per share)	$ 3.98	$ 3.72
Unrecognized compensation cost related to the RSUs	$ 10,000,000
Weighted-average period to recognize unrecognized compensation cost	2 years
Equity Incentive Plan2007 | Restricted Stock Units R S U | Awards Vesting On Employment Through The Fourth Anniversary Of Grant
STOCK-BASED COMPENSATION PLANS
Award vesting percentage	100.00%
Equity Incentive Plan2007 | Restricted Stock | Awards Vesting On Change In Control
STOCK-BASED COMPENSATION PLANS
Award vesting percentage	100.00%
Incentive Plan Amendment
STOCK-BASED COMPENSATION PLANS
Additional shares authorized	5,300,000

SEGMENT AND GEOGRAPHICAL INFO_3

SEGMENT AND GEOGRAPHICAL INFORMATION (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)segment
Segment and geographical information
Number of segments | segment		1
Revenues	$ 275,769	$ 269,554
Fixed assets	6,636	5,229
Americas
Segment and geographical information
Revenues	159,108	161,845
Fixed assets	5,319	3,495
Europe
Segment and geographical information
Revenues	95,130	82,910
Fixed assets	1,162	1,390
Asia Pacific
Segment and geographical information
Revenues	21,531	24,799
Fixed assets	155	344
Germany
Segment and geographical information
Revenues	47,200	40,000
United Kingdom
Segment and geographical information
Revenues	18,600	14,800
Australia
Segment and geographical information
Revenues	$ 17,800	$ 18,600

SCHEDULE II - VALUATION AND Q_2

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts
Changes in valuation and qualifying accounts
Balance at Beginning of Period	$ 503	$ 494
Charges to Costs and Expenses	231	351
Additions/(Deductions)	(333)	(342)
Balance at End of Period	401	503
Allowance for tax valuation
Changes in valuation and qualifying accounts
Balance at Beginning of Period	6,543	6,802
Charges to Costs and Expenses	(2,850)	572
Additions/(Deductions)	516	(831)
Balance at End of Period	$ 4,209	$ 6,543