<TABLE> <S> <C>

<PAGE>

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF TRANSCEND SERVICES, INC. FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

<S>                             <C>                     <C>
<PERIOD-TYPE>                   9-MOS                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1999             DEC-31-1998
<PERIOD-START>                             JAN-01-1999             JAN-01-1998
<PERIOD-END>                               SEP-30-1999             SEP-30-1998
<CASH>                                              67                   1,838
<SECURITIES>                                         0                       0
<RECEIVABLES>                                    8,092                   8,562
<ALLOWANCES>                                      (872)                   (158)
<INVENTORY>                                          0                       0
<CURRENT-ASSETS>                                 8,068                  11,614
<PP&E>                                          12,746                  10,511
<DEPRECIATION>                                  (5,740)                 (3,828)
<TOTAL-ASSETS>                                  20,831                  24,600
<CURRENT-LIABILITIES>                            8,988                   8,372
<BONDS>                                              0                       0
<PREFERRED-MANDATORY>                                0                       0
<PREFERRED>                                          2                       2
<COMMON>                                           221                     216
<OTHER-SE>                                       3,896                   7,955
<TOTAL-LIABILITY-AND-EQUITY>                    20,831                  24,600
<SALES>                                         39,770                  39,235
<TOTAL-REVENUES>                                39,770                  39,235
<CGS>                                           34,970                  32,627
<TOTAL-COSTS>                                        0                       0
<OTHER-EXPENSES>                                 7,177                   5,279
<LOSS-PROVISION>                                     0                       0
<INTEREST-EXPENSE>                                 625                     375
<INCOME-PRETAX>                                 (3,002)                    954
<INCOME-TAX>                                         0                       0
<INCOME-CONTINUING>                             (3,002)                    954
<DISCONTINUED>                                     (73)                    (54)
<EXTRAORDINARY>                                      0                       0
<CHANGES>                                            0                       0
<NET-INCOME>                                    (3,435)                    541
<EPS-BASIC>                                      (0.16)                   0.03
<EPS-DILUTED>                                    (0.16)                   0.03


</TABLE>