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Item 1. Business

2021-01-28 compared with 2020-01-29 · 135 added, 101 removed, 179 unchanged (57% of the section changed)

We are a Fortune 200 corporation and a leading business process services company, providing a comprehensive range of distribution, logistics and integration services for the technology industry and providing outsourced services focused on customer experience to a broad range of enterprises.

We are organized to provide our products and services through two reportable business segments:

We are a Fortune 200 corporation and a leading provider of a comprehensive range of distribution, systems design and integration solutions for the technology industry.

We also provided outsourced services focused on customer experience to a broad range of enterprises.

On December 1, 2020, we completed the previously announced separation of our customer experience services business (the “Separation”), which was accomplished by the distribution of one hundred percent of the outstanding common stock of Concentrix Corporation (“Concentrix”) to our stockholders as of the close of business on November 17, 2020, the record date for the distribution.

Our stockholders received one share of Concentrix common stock for every share of our common stock held at the close of business on the record date.

Concentrix is now an independent public company trading under the symbol “CNXC” on the Nasdaq Stock Market .

After the Separation, we do not beneficially own any shares of Concentrix’ common stock and beginning December 1, 2020, we no longer consolidate Concentrix within our financial results or reflect the financial results of Concentrix within our continuing results of operations.

We distributed a total of approximately 51.6 million shares of Concentrix common stock to our stockholders.

In connection with the Separation, we have entered into a separation and distribution agreement, as well as various other agreements with Concentrix that provide a framework for the relationships between the parties going forward, including among others an employee matters agreement, a tax matters agreement, and a commercial agreement, pursuant to which Concentrix will continue to provide services to us following the Separation .

As of November 30, 2020, we were organized to provide our products and services through two reportable business segments:

Technology Solutions and Concentrix.

Our Technology Solutions segment distributes peripherals, information technology (“IT”) systems including data center server and storage solutions, system components, software, networking, communications and security equipment, consumer electronics (“CE”) and complementary products.

Within our Technology Solutions segment, we also provide systems design and integration solutions.

Our Concentrix segment offers a portfolio of technology-infused strategic solutions and end-to-end business services focused on customer experience, process optimization, technology innovation, front and back-office automation and business transformation to clients in eight identified industry verticals.

On January 9, 2020, we announced a plan to separate our Concentrix segment into an independent publicly-traded company, in a transaction expected to be completed in the second half of 2020.

The separation is intended to qualify as a tax-free transaction for federal income tax purposes for both us and our current stockholders.

Immediately following the separation, our stockholders would own shares of both SYNNEX and Concentrix, each at the same percentage ownership that they held of us prior to the transaction.

Completion of the separation will not require a stockholder vote but will be subject to customary closing conditions, including final approval of our Board of Directors, the receipt of a favorable opinion with respect to the tax-free nature of the transaction, and the effectiveness of a Form 10 registration statement with the U.S.

Securities and Exchange Commission.

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equipment, consumer electronics (“CE”) and complementary products.

Within our Technology Solutions segment, we also provide systems design and integration solutions.

Our Concentrix segment offer ed a portfolio of technology - infused strategic solutions and end-to-end business services focused on customer experience , process optimization, technology innovation, front and back-office automation and business transformation to clients in five primary industry verticals.

In our Technology Solutions segment, we distribute more than 40,000 technology products (as measured by active SKUs) from more than 500 IT, CE and original equipment manufacturers (“OEM”), suppliers to more than 25,000 resellers, system integrators, and retailers throughout the United States, Canada, Japan, Mexico and Central and South America.

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We perform a similar function for our distribution of licensed software products.

Our reseller customers include value-added resellers (“ VARs ”) , corporate resellers, government resellers, system integrators, direct marketers, and national and regional retailers.

Our reseller customers include value-added resellers, corporate resellers, government resellers, system integrators, direct marketers, and national and regional retailers.

We combine our core strengths in distribution with demand generation, supply chain management and design and integration solutions to help our customers achieve greater efficiencies in time to market, cost minimization, real-time linkages in the supply chain and aftermarket product support.

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A difficult and challenging economic environment may also lead to consolidation or decline in the IT and CE industries and increased price-based competition.

In our Concentrix segment, we provide a comprehensive range of strategic services and solutions to enhance our clients’ customer life cycles to acquire, support and renew customer relationships, to automate and optimize processes, to maximize the value of every customer experience and to improve business outcomes.

Our portfolio of services includes end-to-end process outsourcing to customers in various industry vertical markets delivered through omni-channels that include both voice and non-voice media and in more than 70 languages.

Our portfolio of solutions and services support our clients and their customers globally.

In the fourth quarter of fiscal year 2018, we acquired Convergys Corporation ("Convergys"), which added scale, diversified our revenue base, expanded Concentrix delivery footprint and strengthened Concentrix leadership position as a top global provider of customer experience services.

Our Concentrix segment generates revenue from performing services that are generally tied to our clients’ products and services and how they are received in the marketplace.

Any shift in business or size of the market for our clients’ products, any failure of technology or failure of acceptance of our clients’ products in the market may impact our business.

In our Concentrix segment, we provided a comprehensive range of strategic services and solutions to enhance our clients’ customer life cycles to acquire, support and renew customer relationships, to automate and optimize processes, to maximize the value of every customer experience and to improve business outcomes.

Our portfolio of services included end-to-end process outsourcing to customers in various industry vertical markets delivered through omni-channels that included both voice and non-voice media and in more than 70 languages.

Our portfolio of solutions and services supported our clients and their customers globally.

Our Concentrix segment generated revenue from performing services that were generally tied to our clients’ products and services and how they are received in the marketplace.

Any shift in business or size of the market for our clients’ products, any failure of technology or failure of acceptance of our clients’ products in the market could impact the Concentrix business.

The employee turnover rate in this business and the risk of losing experienced employees is high.

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We later reincorporated in the State of Delaware under the name of SYNNEX Corporation in October 2003.

As of November 30, 2019, we had over 240,000 full-time and temporary employees worldwide.

As of November 30, 2020, we had approximately 280,000 full-time and temporary employees worldwide, and on December 1, 2020 following the Separation we had approximately 8,800 full-time and temporary employees worldwide.

Financial information by segment is provided in our Consolidated Financial Statements included elsewhere in this Report.

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Our product offerings also include systems design and full rack integration solutions, build-to-order, and configure-to-order assemblies.

Our Technology Solutions segment represented 80%, of our consolidated revenue in fiscal year 2019 and 88% (as adjusted) of our consolidated revenue in fiscal years 2018 and 2017.

Fiscal years 2018 and 2017 have been adjusted for new accounting guidance on revenue recognition described elsewhere in this report.

Our Technology Solutions segment represented 81%, 80% and 88% of our consolidated revenue in fiscal years 2020, 2019 and 2018, respectively.

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Our primary OEM suppliers are Alphabet Inc.

(Google), Asus Tek Computer Inc., Cisco Systems, Inc., HP Inc.

(“HP”), Hewlett-Packard Enterprise Company, Intel Corporation, Lenovo Group Ltd, Microsoft Corporation, Panasonic Corporation, and Samsung Semiconductor Inc.

(Google), ASUSTeK Computer Inc., Cisco Systems, Inc., HP Inc.

(“HP”), Hewlett-Packard Enterprise Company, Intel Corporation, Lenovo Group Ltd, Microsoft Corporation, and Samsung Semiconductor, Inc.

Our largest OEM supplier is HP.

Revenue from the sale of products and services provided by HP represented approximately 12%, 13% (as adjusted) and 14% (as adjusted) of our consolidated revenue for fiscal years 2019, 2018 and 2017, respectively.

Revenue from the sale of products and services provided by HP represented approximately 12%, 12% and 13% of our consolidated revenue for fiscal years 2020, 2019 and 2018, respectively.

As is typical with our OEM supplier agreements, our United States Business Development Partner Agreement with HP is short-term and may be terminated without cause upon short notice.

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We also provide systems design and integration solutions for data center servers built for our customers’ data center environments.

In our Concentrix segment, we serve over 650 clients in eight industry verticals:

In our Concentrix segment, we served over 650 clients in five primary industry verticals:

banking, financial services and insurance;

energy and public-sector;

media and communications;

retail and e-commerce;

technology and consumer electronics;

and travel and transportation.

We focus on developing long-term, strategic relationships with large companies in these customer-intensive industry verticals to benefit from the complexity of services required, the anticipated growth of their market segments and their increasing need for more cost-effective customer experience services.

In fiscal years 2019, 2018 and 2017, one customer accounted for 19%, 17% (as adjusted) and 21% (as adjusted), respectively, of our consolidated revenue.

We do not believe that the loss of any single customer would have a material adverse effect on the Company and its subsidiaries taken as a whole.

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communications and media;

retail, travel and e-commerce;

and technology and consumer electronics.

We focused on developing long-term, strategic relationships with large companies in these customer-intensive industry verticals to benefit from the complexity of services required, the anticipated growth of their market segments and their increasing need for more cost-effective customer experience services.

One customer accounted for 19% of our consolidated revenue in fiscal years 2020 and 2019 and 17% of our consolidated revenue in fiscal year 2018.

We do not believe that the loss of any single customer would have a material adverse effect on us.

Our Services and Solutions

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These services can be purchased individually or they can be purchased in combination with others in the form of supply chain solutions and aftermarket product support.

The two major categories of services and solutions include Technology Solutions and Concentrix:

The two major categories of services and solutions provided up to November 30, 2020 included Technology Solutions and Concentrix:

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Technology Solutions.

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We offer our OEM suppliers a full range of marketing activities targeting resellers, system integrators and retailers including direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, national and regional trade shows, trade groups, database analysis, print on demand services and web-based marketing.

Our Concentrix segment represented 20% of our consolidated revenue in fiscal year 2019 and 12% (as adjusted) in fiscal years 2018 and 2017.

We offer a portfolio of technology-infused comprehensive solutions and end-to-end business outsourcing services to approximately 650 clients around the world in eight identified industry verticals.

We operate from over 275 locations in numerous countries throughout the Americas, Asia-Pacific, Europe and Africa.

Services are provided from these global locations to clients worldwide in more than 70 languages.

Our portfolio of services is sold as integrated solutions to clients which include:

Our Concentrix segment represented 19%, 20% and 12% of our consolidated revenue in fiscal years 2020, 2019 and 2018, respectively.

We offered a portfolio of technology-infused comprehensive solutions and end-to-end business outsourcing services to approximately 650 clients around the world in five primary industry verticals.

We operated from over 284 locations in numerous countries throughout the Americas, Asia-Pacific, Europe and Africa.

Services were provided from these global locations to clients worldwide in more than 70 languages.

Our portfolio of services was sold as integrated solutions to clients which included:

Customer Lifecycle Management.

Services provided to our clients’ customers across multiple media such as, intelligent self-service, voice, chat, social, messaging, email and knowledge management, support our client’s entire customer care lifecycle.

This includes services such as welcome and activation calls, billing, payments, product and service inquiries, complaint resolution, customer surveys and emergency response.

We also provide back office support for these processes which include document management, claims management, fraud prevention, mortgage document verification, rebate management as a few examples.

We also provide services that provide feedback to our clients.

This is provided through a dedicated team of professionals to deliver data-driven insights to our clients to improve the customer experience through analytics and consulting, and software solutions, such as, Enterprise Feedback Management/Multi-channel, Voice of Customer Software, Integrated Customer Experience Analytics, Post-Contact Surveys, Relational Loyalty Research, Customer Segmentation and Profiling, Call Elimination Analysis, Analysis of Customer Effort, Digital Channel Optimization, and Integrated Contact Center Analytics.

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Services provided to our clients’ customers across multiple media, such as intelligent self-service, voice, chat, social, messaging, email and knowledge management, supported our client’s entire customer care lifecycle.

This included services such as welcome and activation calls, billing, payments, product and service inquiries, complaint resolution, customer surveys and emergency response.

We also provided back office support for these processes which include document management, claims management, fraud prevention, mortgage document verification, rebate management as a few examples.

We also provided services that provide feedback to our clients.

This was provided through a dedicated team of professionals to deliver data-driven insights to our clients to improve the customer experience through analytics and consulting, and software solutions, such as, Enterprise Feedback Management/Multi-channel, Voice of Customer Software, Integrated Customer Experience Analytics, Post-Contact Surveys, Relational Loyalty Research, Customer Segmentation and Profiling, Call Elimination Analysis, Analysis of Customer Effort, Digital Channel Optimization, and Integrated Contact Center Analytics.

Marketing Solutions.

Our services include data-driven customer acquisition and retention marketing solutions across digital, social, mobile and print channels that help our clients manage their marketing through a diverse distribution channel enabling each constituent in the channel to participate in targeting end customers with the right brand experience .

We also support our client ’ s loyalty and incentive programs, event administration, point of purchase and targeted lifecycle messaging to customers through services as described in our Customer Lifecycle Management services.

Our services included data-driven customer acquisition and retention marketing solutions across digital, social, mobile and print channels that helped our clients manage their marketing through a diverse distribution channel enabling each constituent in the channel to participate in targeting end customers with the right brand experience.

We also supported our client’s loyalty and incentive programs, event administration, point of purchase and targeted lifecycle messaging to customers through services as described in our Customer Lifecycle Management services.

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Third Party Administration of Insurance Policies.

We are a licensed Third Party Administrator of certain types of insurance policies that are managed through our proprietary insurance management system as well as other third-party systems.

The services are provided primarily in the United States.

We were a licensed Third Party Administrator of certain types of insurance policies that were managed through our proprietary insurance management system as well as other third - party systems.

The services were provided primarily in the United States.

Enterprise Mobile Development.

We provide mobile application development across multiple industries for both IOS and Android devices that are focused on Enterprise deployments.

Services within this group include UX/UI designed/development, optimization of applications and movement of on-premise systems to the cloud.

We provided mobile application development across multiple industries for both IOS and Android devices that are focused on Enterprise deployments.

Services within this group included UX/UI designed/development, optimization of applications and movement of on-premise systems to the cloud.

Automation and Process Optimization.

We deliver focused front office solutions with workflows and macro/desktop automation that drive improved staff efficiency and implement cognitive systems/robotic process automation to replace manual touch points.

These services use both internal technology assets as well as third party tools.

We delivered focused front office solutions with workflows and macro/desktop automation that drive improved staff efficiency and implemented cognitive systems/robotic process automation to replace manual touch points.

These services used both internal technology assets as well as third party tools.

Technology Assets.

We license a number of our technology assets without being bundled with services which enable our clients to be more efficient, drive higher visibility to data and identify valuable customer patterns and insights from enterprise data to design better customer experience strategies.

These assets are used within our portfolio of services as well.

We licensed a number of our technology assets without being bundled with services which enabled our clients to be more efficient, drive higher visibility to data and identify valuable customer patterns and insights from enterprise data to design better customer experience strategies.

These assets were used within our portfolio of services as well.

Sales and Marketing

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We have sales and marketing professionals in close geographic proximity to our reseller, retail and OEM customers.

In our Concentrix segment, we market our services through a sales force organized by industry vertical and geography.

The length of our selling cycle varies depending on the type of engagement.

Our efforts may begin in response to our lead generation program, a perceived opportunity, a reference by an existing client, a request for proposal or otherwise.

The sales cycle varies depending on the type of services, as well as the existence of established relationships with the client.

We have designated client partners or global relationship managers for each of our strategic relationships.

The relationship manager is supported by process improvement, quality, transition, finance, human resources, information technology and industry or subject matter expert teams to ensure the best possible solution is provided to our clients.

We also strive to foster relationships between our senior leadership team and our clients’ senior management.

These “C-level” relationships ensure that both parties are focused on establishing priorities, aligning objectives and driving client value from the top down.

High-level executive relationships have been particularly constructive as a means of increasing business from our existing clients.

It also provides us with a forum for addressing client concerns.

We constantly measure our client satisfaction levels to ensure that we maintain high service levels for each client.

In our Concentrix segment, we marketed our services through a sales force organized by industry vertical and geography.

The length of our selling cycle varied depending on the type of engagement.

Our efforts could begin in response to our lead generation program, a perceived opportunity, a reference by an existing client, a request for proposal or otherwise.

The sales cycle varied depending on the type of services, as well as the existence of established relationships with the client.

We had designated client partners or global relationship managers for each of our strategic relationships.

The relationship manager was supported by process improvement, quality, transition, finance, human resources, information technology and industry or subject matter expert teams to ensure the best possible solution is provided to our clients.

We also strived to foster relationships between our senior leadership team and our clients’ senior management.

These “C-level” relationships ensured that both parties were focused on establishing priorities, aligning objectives and driving client value from the top down.

High-level executive relationships were particularly constructive as a means of increasing business from our existing clients.

It also provided us with a forum for addressing client concerns.

We constantly measured our client satisfaction levels to ensure that we maintained high service levels for each client.

Our Operations

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We use radio frequency and bar code scanning technologies in all of our warehouse operations to maintain real-time inventory records, facilitate frequent cycle counts and improve the accuracy of order fulfillment.

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To enhance the accuracy of our distribution order fulfillment and protect our inventory from shrinkage, our distribution systems also incorporate numerous controls.

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These images and other warehouse and shipping data are available online to our customer service representatives, enabling us to quickly respond to order inquiries by our customers.

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We operate our principal system design and integration solutions facilities in the United States , and we operate integration facilities in the United Kingdom and China.

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Some of our design and integration solutions facilities are ISO 9001:2015 and ISO 14001:2015 certified.

In our Concentrix segment, we have global delivery capability which allows us to scale people and other resources from around the world, including foreign language fluency, proximity to clients and time-zone advantages.

A critical component of this capability is our over 275 delivery and administrative centers in 40 countries throughout North and South America, Asia-Pacific, Europe and Africa.

Our delivery centers improve the efficiency of our engagement teams through the reuse of processes, solution designs and infrastructure by leveraging the experience of delivery center professionals.

Services are provided from these global locations to clients worldwide in multiple languages.

These services are supported by proprietary technology to enable efficient and secure customer contact through various methods including voice, chat, web, email, social media and digital and mobility competencies by providing improved business intelligence and performance through enabling technologies.

Many of our delivery centers are PCI DSS (Payment Card Industry Security Standards Council's Data Security Standards) version 3.2.1 certified.

Many of our delivery centers are certified to ISO standards.

Twenty-eight of our delivery centers around the world are certified to COPC (Customer Operation Performance Center) OSP standard.

We operate a distributed data processing environment that can integrate service delivery center data servers and databases with thirty-nine data centers and point of presence strategically located across the globe .

Our technologically-advanced and secured data centers provide availability 24 hours a day, 365 days a year, with redundant power and communication feeds and emergency power back-up, and are designed to withstand most natural disasters.

The capacity of our data center and contact center operations, coupled with the scalability of our customer management solutions, enable us to meet the changing needs of large-scale and rapidly growing companies and government entities.

By employing the scale and efficiencies of common application platforms, we can provide client-specific enhancements and modifications without incurring many of the costs of a full custom application, which positions us as a value-added provider of customer support products and services.

In our Concentrix segment, we had global delivery capability which allowed us to scale people and other resources from around the world, including foreign language fluency, proximity to clients and time-zone advantages.

A critical component of this capability was our over 284 delivery and administrative centers in 40 countries throughout North and South America, Asia-Pacific, Europe and Africa.

Our delivery centers improved the efficiency of our engagement teams through the reuse of processes, solution designs and infrastructure by leveraging the experience of delivery center professionals.

Services were provided from these global locations to clients worldwide in multiple languages.

These services were supported by proprietary technology to enable efficient and secure customer contact through various methods including voice, chat, web, email, social media and digital and mobility competencies by providing improved business intelligence and performance through enabling technologies.

All of our delivery centers were PCI DSS (Payment Card Industry Security Standards Council's Data Security Standards) version 3.2.1 certified.

All of our delivery centers were certified to ISO standards.

Twenty-nine of our delivery centers around the world were certified to COPC (Customer Operation Performance Center) OSP standard.

We operated a distributed data processing environment that could integrate service delivery center data servers and databases with nineteen data centers and point of presence strategically located across the globe .

Our technologically-advanced and secured data centers provided availability 24 hours a day, 365 days a year, with redundant power and communication feeds and emergency power back-up, and were designed to withstand most natural disasters.

The capacity of our data center and contact center operations, coupled with the scalability of our customer management solutions, enabled us to meet the changing needs of large-scale and rapidly growing companies and government entities.

By employing the scale and efficiencies of common application platforms, we could provide client-specific enhancements and modifications without incurring many of the costs of a full custom application, which positioned us as a value-added provider of customer support products and services.

International Operations

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Our end market strategy for our Technology Solutions business, while focused on the Americas, is expanding internationally on a selective basis in order to provide our distribution capabilities to OEMs in locations that meet their regional requirements.

A key element in our business strategy has been to locate our Concentrix service delivery contact centers in markets that are strategic to our client requirements and cost beneficial.

Our Concentrix segment has significant operations in the Philippines and India.

A key element in our business strategy had been to locate our Concentrix service delivery contact centers in markets that were strategic to our client requirements and cost beneficial.

Our Concentrix segment had significant operations in the Philippines and India.

Sales and cost concentrations in foreign jurisdictions subject us to various risks, including the impact of changes in the value of these foreign currencies relative to the US Dollar, which in turn can impact reported sales.

See Note 12 -- Segment Information to the Consolidated Financial Statements included in Item 8 of this Report for additional financial information related to foreign and domestic operations.

See Note 11 -- Segment Information to the Consolidated Financial Statements included in Item 8 of this Report for additional financial information related to international and domestic operations.

Our operating results in the Technology Solutions segment are affected by the seasonality of the IT and CE products industries.

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These patterns may not be repeated in subsequent periods.

Revenue in our Concentrix segment is typically the highest in our fourth fiscal quarter.

Revenue in our Concentrix segment was typically the highest in our fourth fiscal quarter.

In our Technology Solutions segment, product cost represents our single largest expense and IT and CE product inventory is one of our largest working capital investments.

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Consequently, efficient and effective purchasing operations are critical to our success.

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Our purchasing group works closely with many areas of our organization, especially our product managers who work closely with our OEM suppliers and our sales force, to understand the volume and mix of IT products that should be purchased.

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In addition, the purchasing group utilizes an internally developed, proprietary information systems application that further aids in forecasting future product demand based on several factors, including historical sales levels, expected product life cycle and current and projected economic conditions.

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In particular, we maintain EDI, XML, web-based communication links and mobile platform applications with many of our reseller and retail customers to enable them to search for products, check real-time pricing, inventory availability and specifications, place and track orders, receive invoices and process returns.

Within our Concentrix segment, we invest in IT systems, infrastructure, automation and security to enhance workforce management and improve productivity.

Our contact centers can employ a broad range of technology, including digital switching, intelligent call routing and tracking, proprietary workforce management systems, case management tools, proprietary software systems, computer telephony integration, interactive voice response, advanced speech recognition, web-based tools and relational database management systems with embedded security.

Our innovative use of technology enables us to improve our voice, chat, web and e-mail handling and personnel scheduling, thereby increasing our efficiency and enhancing the quality of the services we deliver to our clients and their customers.

We are able to respond to changes in client call volumes and manage call volume traffic based on agent availability.

Additionally, we can use this technology to collect information concerning the contacts, including number, response time, duration and results of the contact and report the information to the client on a periodic basis for purposes of monitoring quality of service and accuracy of billing.

Within our Concentrix segment, we invested in IT systems, infrastructure, automation and security to enhance workforce management and improve productivity.

Our contact centers could employ a broad range of technology, including digital switching, intelligent call routing and tracking, proprietary workforce management systems, case management tools, proprietary software systems, computer telephony integration, interactive voice response, advanced speech recognition, web-based tools and relational database management systems with embedded security.

Our innovative use of technology enabled us to improve our voice, chat, web and e-mail handling and personnel scheduling, thereby increasing our efficiency and enhancing the quality of the services we delivered to our clients and their customers.

We were able to respond to changes in client call volumes and manage call volume traffic based on agent availability.

Additionally, we could use this technology to collect information concerning the contacts, including number, response time, duration and results of the contact and report the information to the client on a periodic basis for purposes of monitoring quality of service and accuracy of billing.

We operate in a highly competitive global environment.

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Some may have more developed relationships with their existing customers.

We attempt to offset our comparative scale differences by focusing on a limited number of leading OEMs in the Technology Solutions segment, by running a more efficient and low-cost operation, and by offering a high level of value-added and customer services in both the Technology Solutions and Concentrix segments.

In our Concentrix segment, we operate in a highly competitive and rapidly evolving global marketplace.

Our competitors are both regional players as well as global companies.

Our major competitors include Accenture plc, Conduent Inc., Genpact Limited, Globant S.A., Sykes Enterprises Inc., Teleperformance S.A., TTEC Holdings, Inc., and Transcosmos Inc.

In the future, we may face greater competition due to the consolidation of business process outsourcing providers.

Consolidation activity may result in competitors with greater scale, a broader footprint or more attractive pricing than ours.

In addition, a client or potential client may choose not to outsource its business, by setting up captive outsourcing operations or by performing formerly outsourced services for themselves, or may switch customer care providers.

We constantly seek to expand our business into areas primarily related to our core distribution and outsourced business services as well as other support, logistics and related value-added services, both organically and through strategic acquisitions.

As of November 30, 2019, we had approximately 235,000 full-time employees.

In the Technology Solutions segment we attempt to offset our comparative scale difference by focusing on a limited number of leading OEMs by running a more efficient and low-cost operation, and by offering a high level of value-added and customer services.

In the Concentrix Segment, we attempted to offset our comparative scale difference through efficiency, low-cost operations and by offering a high level of value-added customer services.

In our Concentrix segment, we operated in a highly competitive and rapidly evolving global marketplace.

Our competitors were both regional players as well as global companies.

Our major competitors included Accenture plc, Genpact Limited, Teleperformance S.A., TTEC Holdings, Inc., Conduent, Inc., Transcosmos Inc., Sykes Enterprises Inc., and Globant S.A.

We constantly seek to expand our business into areas primarily related to our core distribution as well as other support, logistics and related value-added services, both organically and through strategic acquisitions.

Human Capital Resources

As of November 30, 2020, we had approximately 270,000 full-time associates.

Approximately 7,500 of those full-time associates worked in our Technology Solutions segment.

Given the variability in our business and the quick response time required by customers, it is critical that we are able to rapidly ramp-up and ramp-down our operational capabilities to maximize efficiency.

As a result, we use temporary or contract workers, who totaled approximately 5,900, on a full-time equivalent basis, as of November 30, 2019.

Except for a small number of our employees in certain countries, generally required by local regulations or brought in through acquisitions, our employees are not represented by a labor union, nor are they covered by a collective bargaining agreement.

We consider our employee relations to be good.

As a result, we use temporary or contract workers, who totaled approximately 7,900, on a full-time equivalent basis, as of November 30, 2020, approximately 1,300 of whom worked in our Technology Solutions segment.

Except for a small number of our employees in certain countries, where it is required by local regulations or associates brought in through acquisitions, our employees are not represented by a labor union, nor are they covered by a collective bargaining agreement.

We are committed to fostering a diverse and inclusive workplace that attracts and retains exceptional talent.

Through ongoing employee development, comprehensive compensation and benefits, and a focus on health, safety and employee wellbeing, we strive to help our employees in all aspects of their lives so they can do their best work.

With the completion of the Separation on December 1, 2020, our discussion about our human capital resources is focused on our Technology Solutions segment.

Diversity, Equity and Inclusion

We are committed to being unconditionally inclusive to capture the ideas and perspectives that fuel innovation and enable our workforce, customers, and communities to succeed in the digital age.

We strive to create an inclusive workplace where people can bring their authentic selves to work.

Our commitment to diversity and inclusion starts at the top with a highly skilled and diverse board of directors.

Women represent 25% of our board of directors and 43% of our associate base.

We strive to remain a diverse company.

Robert Huang, founder of our company, wanted to ensure we had the best associates regardless of their age, ethnicity, or gender.

His legacy and our primary focus is to work hard, do well, and treat others with respect.

Pay Equity or Total Rewards

We believe people should be paid for what they do and how they do it, regardless of their gender, race, or other personal characteristics.

To deliver on that commitment, we benchmark and set pay ranges based on market data and consider factors such as an employee’s role and experience, the location of their job, and their performance.

We also review our compensation practices, both in terms of our overall workforce and individual employees, to ensure our pay is fair and equitable.

We have reviewed the compensation of employees to ensure consistent pay practices by conducting a pay equity analysis annually comparing employees in the same role within a country/location.

We require a uniquely talented workforce and are committed to providing total rewards that are market-competitive and performance-based, driving innovation and operational excellence.

Our compensation programs, practices, and policies reflect our commitment to reward short- and long-term performance that aligns with, and drives, stockholder value.

Total direct compensation is generally positioned within a competitive range of the market median, with differentiation based on tenure, skills, proficiency, and performance to attract and retain key talent.

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Employee Engagement

We regularly collect feedback to better understand and improve the employee experience and identify opportunities to continually strengthen our culture.

We want to know what is working well, what we can do better and how well our associates understand an d are practicing our cultural values.

In 2020, nearly 80% of associates participated in our annual employee survey.

Trainin g and Development

Human capital development underpins our efforts to execute our strategy and continue to distribute, design, integrate and market innovative products and services.

We continually invest in our employees’ career growth and provide employees with a wide range of development opportunities, including face-to-face, virtual, social and self-directed learning, mentoring, coaching, and external development.

Health, Safety and Wellness

The physical health, financial wellbeing, life balance and mental health of our employees is vital to our success.

Our environmental, health, and safety leadership team uses our global injury and illness reporting system to assess trends regionally and worldwide as a part of quarterly reviews.

Our warehouse and integration facilities continue to represent our most significant health and safety risks.

Managing and reducing risks at these facilities remains a focus, and injury rates continue to be low.

We also sponsor a wellness program designed to enhance physical, financial, and mental wellbeing for all our employees.

Throughout the year, we encourage healthy behaviors through regular communications, educational sessions, voluntary progress tracking, wellness challenges, and other incentives.

Since the onset of the COVID-19 pandemic, we have taken an integrated approach to helping our associates manage their work and personal responsibilities, with a strong focus on employee wellbeing, health and safety.

We have successfully transitioned most of our workforce in both segments to a remote working environment and implemented a number of safety and social distancing measures within our premises to protect the health and safety of associates who are required to be on-premise to support our business .

Available Information

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What changed 10-K

Item 1. Business