================================================================================
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 10-Q
                                    ---------

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


                  For the quarterly period ended MARCH 31, 2001


  Commission           Exact name of registrant              IRS Employer
 File Number         as specified in its charter            Identification No.

    1-12577                 SITEL CORPORATION                  47-0684333



                                    MINNESOTA
                                    ---------
         (State or Other Jurisdiction of Incorporation or Organization)

 111 S. CALVERT STREET, SUITE 1900 BALTIMORE,  MARYLAND                 21202
--------------------------------------------------------------------------------
        (Address of Principal Executive Offices)                     (Zip Code)

                                 (410) 246-1505
                                 --------------
              (Registrant's Telephone Number, Including Area Code)



           SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:

                                                  NAME OF EACH EXCHANGE
          TITLE OF EACH CLASS                      ON WHICH REGISTERED
          -------------------                      -------------------
     Common Stock, $.001 Par Value             The New York Stock Exchange


           SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:
                                 Not Applicable


     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant  was required to file such  reports) and (2) has been subject to such
filing requirements for the past 90 days. YES X NO ____

COMMON STOCK, $.001 PAR VALUE - 73,876,645 SHARES OUTSTANDING AS OF APRIL 30,
2001

================================================================================
<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES

                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----
PART I - FINANCIAL INFORMATION

     Item 1  -  Financial Statements

                Consolidated Condensed Statements of Income................... 1
                Consolidated Condensed Balance Sheets......................... 2
                Consolidated Condensed Statements of Cash Flows............... 3
                Notes to Consolidated Financial Statements.................... 4

     Item 2   - Management's Discussion and Analysis of Financial Condition
                and Results of Operations

                General.......................................................12
                Results of Operations.........................................12
                Financial Condition...........................................14
                Capital Resources.............................................14
                Other Matters.................................................15

     Item 3  -  Quantitative and Qualitative Disclosures About Market Risk....15


PART II - OTHER INFORMATION

     Item 5   - Other Information.............................................16

     Item 6  -  Exhibits and Reports on Form 8-K..............................16

     Signature................................................................17


<PAGE>
PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                       SITEL CORPORATION AND SUBSIDIARIES
             CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                     THREE MONTHS ENDED
                                                                                          MARCH 31,
                                                                             -----------------------------------
                                                                                  2001                2000
                                                                             ------------         -----------
                                                                           (in thousands, except per share data)

<S>                                                                          <C>                  <C>
REVENUES                                                                     $  184,004           $  198,611
----------------------------------------------------------------------------------------------------------------

OPERATING EXPENSES:
   Direct labor and telecommunications expenses                                 101,629              104,551
   Subcontracted and other services expenses                                      9,290               12,536
   Operating, selling and administrative expenses                                68,593               72,272
--------------------------------------------------------------------------------------------------------------
   Total operating expenses                                                     179,512              189,359
--------------------------------------------------------------------------------------------------------------

OPERATING INCOME                                                                  4,492                9,252
--------------------------------------------------------------------------------------------------------------

OTHER INCOME (EXPENSE):
   Interest expense, net                                                         (2,850)              (3,436)
   Other expense, net                                                              (143)                 (66)
--------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT) AND MINORITY INTEREST                  1,499                5,750

Income tax expense (benefit)                                                     (9,185)               2,474
Minority interest                                                                    54                  258
--------------------------------------------------------------------------------------------------------------
NET INCOME                                                                   $   10,630           $    3,018
==============================================================================================================

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
   Basic                                                                         72,205               69,161
   Diluted                                                                       74,262               75,786

INCOME PER COMMON SHARE:
   Basic                                                                     $     0.15           $     0.04
   Diluted                                                                   $     0.14           $     0.04
</TABLE>

See Notes to Consolidated Financial Statements.

                                       1

<PAGE>

PART I. FINANCIAL INFORMATION (CONTINUED)

ITEM 1. FINANCIAL STATEMENTS

                       SITEL CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                      (UNAUDITED)
                                                                                        MARCH 31,        DECEMBER 31,
                                                                                          2001                2000
                                                                                     -------------       --------------
                                                                                     (in thousands, except share data)
ASSETS
   CURRENT ASSETS:
<S>                                                                                   <C>                  <C>
     Cash and cash equivalents                                                        $    12,078          $    19,897
     Trade accounts receivable (net of allowance for doubtful accounts of
       $6,747 and $6,456, respectively)                                                   157,089              146,662
     Prepaid expenses                                                                      10,280                8,376
     Deferred income taxes                                                                  7,181                3,769
     Other assets                                                                           5,150                7,968
------------------------------------------------------------------------------------------------------------------------
     Total current assets                                                                 191,778              186,672
------------------------------------------------------------------------------------------------------------------------

   PROPERTY AND EQUIPMENT, NET                                                            102,838               99,793
------------------------------------------------------------------------------------------------------------------------

   OTHER ASSETS:
     Goodwill, net                                                                         75,304               78,443
     Deferred income taxes                                                                 14,030                7,338
     Other assets                                                                           9,358                7,976
------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS                                                                          $   393,308          $   380,222
========================================================================================================================


LIABILITIES AND STOCKHOLDERS' EQUITY
   CURRENT LIABILITIES:
     Notes payable                                                                    $       110          $       302
     Current portion of long-term debt                                                     14,414                1,120
     Current portion of capital lease obligations                                           3,385                3,964
     Trade accounts payable                                                                25,948               27,906
     Income taxes payable                                                                   4,534                4,099
     Deferred income taxes                                                                  1,285                  307
     Accrued wages, salaries and bonuses                                                   25,671               26,728
     Accrued operating expenses                                                            20,353               23,446
     Deferred revenue and other                                                             8,380                5,217
------------------------------------------------------------------------------------------------------------------------
     Total current liabilities                                                            104,080               93,089

   LONG-TERM DEBT AND OTHER LIABILITIES:
     Long-term debt, excluding current portion                                            100,000              100,000
     Capital lease obligations, excluding current portion                                   7,376                8,341
     Deferred compensation                                                                  2,577                2,448
     Deferred income taxes                                                                    439                  461
------------------------------------------------------------------------------------------------------------------------
     Total liabilities                                                                    214,472              204,339
------------------------------------------------------------------------------------------------------------------------

   MINORITY INTERESTS                                                                       6,016                6,301
------------------------------------------------------------------------------------------------------------------------

   STOCKHOLDERS' EQUITY:
     Common stock                                                                              73                   72
     Paid-in capital                                                                      168,685              168,640
     Accumulated other comprehensive loss                                                 (26,581)             (19,388)
     Retained earnings                                                                     30,888               20,258
     Less treasury stock, at cost, 71,800 common shares                                      (245)                  --
------------------------------------------------------------------------------------------------------------------------
     Total stockholders' equity                                                           172,820              169,582
------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                            $   393,308          $   380,222
========================================================================================================================
</TABLE>
See Notes to Consolidated Financial Statements.

                                       2
<PAGE>

PART I. FINANCIAL INFORMATION (CONTINUED)

ITEM 1. FINANCIAL STATEMENTS

                       SITEL CORPORATION AND SUBSIDIARIES
           CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
                                                                            THREE MONTHS ENDED
                                                                                 MARCH 31,
                                                                     ----------------------------------
                                                                          2001                2000
                                                                     -------------        -------------
                                                                              (in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                   <C>                  <C>
   Net income                                                         $    10,630          $     3,018
   Adjustments to reconcile net income to net cash
     provided by (used in) operating activities:
     Depreciation and amortization                                         10,328               12,178
     Changes in operating assets and liabilities:
       Trade accounts receivable                                          (13,777)                 733
       Other assets                                                        (8,802)               2,853
       Trade accounts payable                                              (1,499)              (3,949)
       Other liabilities                                                    1,308                5,987
--------------------------------------------------------------------------------------------------------
   Net cash provided by (used in) operating activities                     (1,812)              20,820
--------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of property and equipment                                    (15,163)              (5,091)
   Proceeds from sales of property and equipment                               31                   --
   Increase in other assets                                                (1,429)                  --
--------------------------------------------------------------------------------------------------------
   Net cash used in investing activities                                  (16,561)              (5,091)
--------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Repayments of notes payable                                               (191)              (2,632)
   Borrowings on debt                                                      13,492               15,000
   Repayment of debt and capital lease obligations                         (1,160)             (35,318)
   Common stock issued, net of expenses                                        94                2,544
   Purchases of treasury stock                                               (245)                  --
   Other                                                                      (49)                  (7)
--------------------------------------------------------------------------------------------------------
   Net cash provided by (used in) in financing activities                  11,941              (20,413)
--------------------------------------------------------------------------------------------------------
Effect of exchange rates on cash                                           (1,387)                 755
--------------------------------------------------------------------------------------------------------
NET DECREASE IN CASH                                                       (7,819)              (3,929)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             19,897               22,305
--------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                              $    12,078          $    18,376
========================================================================================================
</TABLE>
See Notes to Consolidated Financial Statements.

                                       3
<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. BASIS OF PRESENTATION

DESCRIPTION OF OUR BUSINESS
References in the Notes to Consolidated  Financial  Statements to "we" and "our"
are to SITEL Corporation and its subsidiaries, collectively.

We  are  the  world's  leading  contact  center  experts   supporting   Customer
Relationship Management (CRM) solutions for large corporations in North America,
Europe,  Asia  Pacific,  and Latin  America.  We provide  customer  acquisition,
customer care,  technical support and risk management  services on an outsourced
basis, as well as operational and information technology consulting services for
the in-house  market.  We serve  clients  primarily in the  consumer,  financial
services, insurance, telecommunications, technology, and utilities sectors.

USE OF ACCOUNTING ESTIMATES
Management makes estimates and assumptions when preparing  financial  statements
under accounting  principles  generally accepted in the United States of America
that affect:

o    our  reported  amounts  of  assets  and  liabilities  at the  dates  of the
     financial statements,
o    our  disclosure of contingent  assets and  liabilities  at the dates of the
     financial statements, and
o    our reported amounts of revenues and expenses during the reporting periods.

These estimates  involve  judgments with respect to, among other things,  future
economic  factors  that are  difficult  to predict  and are beyond  Management's
control. As a result, actual amounts could differ from these estimates.

QUARTERLY RESULTS AND SEASONALITY
We have experienced, and expect to continue to experience,  quarterly variations
in our results of operations mostly due to:

o    the timing of our clients' customer relationship management initiatives and
     customer acquisition and loyalty campaigns,
o    the commencement and terms of new contracts,
o    revenue mix,
o    the timing of additional operating, selling, and administrative expenses to
     support new business, and
o    the timing of recognition of incentive fees.

We experience periodic fluctuations in our results of operations related to both
the start-up costs associated with expansion and the  implementation of clients'
CRM  activities.  In  addition,  our  business  tends to be  slower in the third
quarter due to summer  holidays in Europe,  and in the first  quarter due to the
changeover of client marketing  strategies that often occurs at the beginning of
the year.

FINANCIAL STATEMENTS
Our Consolidated  Condensed Balance Sheet at December 31, 2000 was obtained from
our  audited  balance  sheet as of that  date.  All other  financial  statements
contained  in this  report are  unaudited  and,  in the  opinion of  Management,
contain all  adjustments  necessary  for a fair  presentation  of the  financial
position,  operating results,  and cash flows for the periods  presented.  These
adjustments are of a normal recurring nature.

You should read our consolidated  condensed financial  statements in this report
in conjunction with Management's  Discussion and Analysis of Financial Condition
and Results of Operations,  the Consolidated Financial Statements, and the Notes
to  Consolidated  Financial  Statements  in our Report on Form 10-K for the year
ended December 31, 2000.

FINANCIAL INSTRUMENTS
In June 2000,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial Accounting Standards (SFAS) No. 138, Accounting for Certain Derivative
Investments  and  Certain  Hedging  Activities.   The  standard  amends  certain
provisions of SFAS No. 133,  Accounting for Derivative  Investments  and Hedging
Activities,  which was issued in June 1998 to establish accounting standards for
derivative  instruments and for hedging activities.  We adopted these accounting
pronouncements  effective  January 1, 2001.  The  adoption  of these  standards,
including the valuation of derivative  instruments  outstanding on the effective
date, and the related cumulative effect of adoption did not significantly impact
our consolidated financial statements.

RECLASSIFICATIONS
We have  reclassified  certain  prior-period  amounts for comparative  purposes.
These  reclassifications  did not affect consolidated net income for the periods
presented.


                                       4
<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 2. COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss) was:

o     $3.4 million for the three months ended March 31, 2001, and
o    ($0.3) million for the three months ended March 31, 2000.

The difference  between our reported net income and comprehensive  income (loss)
for each  period  presented  is  primarily  the change in the  foreign  currency
translation  adjustment.  Accumulated other comprehensive income (loss) included
in our Consolidated  Balance Sheets represents the accumulated  foreign currency
translation adjustment.

NOTE 3. INCOME TAXES

During the three months ended March 31, 2001, we recorded a net deferred  income
tax benefit of $9.8 million  resulting  from an election to treat certain of our
foreign operations as branches of our U.S. company for U.S. income tax purposes.
This  benefit  is  comprised  of a $22.9  million  deferred  income  tax  asset,
resulting  from  current  and  future  tax-deductible  goodwill,  net of a $13.1
million valuation allowance.

We  estimate  that $3.0  million of the net asset will be  realized  in 2001 and
have,  accordingly,  recorded this amount as a current deferred income tax asset
in our March 31, 2001 Consolidated Balance Sheet. We have recorded the remaining
$6.8 million of this benefit as a non-current  deferred  income tax asset, as we
expect to realize this amount in years after 2001.

Based upon our current and historical  earnings,  Management believes that it is
more likely than not that we will generate  sufficient  taxable  income to fully
realize the benefits of our recorded net deferred tax assets.

NOTE 4. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION

Our 9.25% Senior Subordinated Notes are guaranteed, on a full, unconditional and
joint and several  basis,  by  substantially  all of our wholly  owned  domestic
subsidiaries.   Separate   financial   statements  for  each  of  the  guarantor
subsidiaries are not presented  because they would not be material to investors.
However,  on the following  pages we have presented the following  statements of
(a) SITEL  Corporation,  the parent,  (b) the  guarantor  subsidiaries,  (c) the
nonguarantor subsidiaries, and (d) SITEL Corporation on a consolidated basis:

o    Condensed  Consolidating  Statements  of Income  (Loss)  and  Comprehensive
     Income (Loss) for the three months ended March 31, 2001 and 2000,
o    Condensed  Consolidating  Balance Sheets at March 31, 2001 and December 31,
     2000, and
o    Condensed Consolidated  Statements of Cash Flows for the three months ended
     March 31, 2001 and 2000.

                                       5
<PAGE>
NOTE 4. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
 CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

                                                                  GUARANTOR    NONGUARANTOR
Three Months Ended March 31, 2001                    PARENT     SUBSIDIARIES   SUBSIDIARIES  ELIMINATIONS CONSOLIDATED
------------------------------------------------------------------------------------------------------------------------
                                                                              (in thousands)
<S>                                                <C>           <C>             <C>             <C>        <C>
REVENUES                                           $ 102,111     $  10,376       $ 71,997        $   (480)  $   184,004
------------------------------------------------------------------------------------------------------------------------

OPERATING EXPENSES:
   Direct labor and telecommunications expenses       55,790         5,962         39,877              --       101,629
   Subcontracted and other services expenses           7,540           546          1,204              --         9,290
   Operating, selling and administrative expenses     33,669         2,497         32,907            (480)       68,593
------------------------------------------------------------------------------------------------------------------------
Total operating expenses                              96,999         9,005         73,988            (480)      179,512
------------------------------------------------------------------------------------------------------------------------

OPERATING INCOME (LOSS)                                5,112         1,371         (1,991)             --         4,492
------------------------------------------------------------------------------------------------------------------------

OTHER INCOME (EXPENSE):
   Equity in earnings (losses) of
     subsidiaries, net of tax                         (2,011)       (2,781)            --           4,792            --
   Interest expense, net                              (2,549)         (109)          (192)             --        (2,850)
   Other expense, net                                     (6)           --           (137)             --          (143)
------------------------------------------------------------------------------------------------------------------------
Total other income (expense)                          (4,566)       (2,890)          (329)          4,792        (2,993)
------------------------------------------------------------------------------------------------------------------------

INCOME (LOSS) BEFORE INCOME TAX
   EXPENSE (BENEFIT) AND MINORITY INTEREST               546        (1,519)        (2,320)          4,792         1,499

Income tax expense (benefit)                         (10,084)          492            407              --        (9,185)
Minority interest                                         --            --             54              --            54
------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)                                  $  10,630     $  (2,011)      $ (2,781)       $  4,792   $    10,630
========================================================================================================================

Currency translation adjustment                       (7,193)       (7,070)        (6,966)         14,036        (7,193)
------------------------------------------------------------------------------------------------------------------------
COMPREHENSIVE INCOME (LOSS)                        $   3,437     $  (9,081)      $ (9,747)       $ 18,828   $     3,437
========================================================================================================================
</TABLE>
                                       6
<PAGE>
NOTE 4. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
 CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

                                                                  GUARANTOR    NONGUARANTOR
Three Months Ended March 31, 2000                    PARENT     SUBSIDIARIES   SUBSIDIARIES  ELIMINATIONS CONSOLIDATED
------------------------------------------------------------------------------------------------------------------------
                                                                              (in thousands)
<S>                                                <C>           <C>             <C>             <C>        <C>
REVENUES                                           $  97,427     $   8,330       $ 93,222        $   (368)  $  198,611
------------------------------------------------------------------------------------------------------------------------

OPERATING EXPENSES:
   Direct labor and telecommunications expenses       50,538         3,841         50,172              --      104,551
   Subcontracted and other services expenses           8,950           600          2,986              --       12,536
   Operating, selling and administrative expenses     34,184         2,984         35,472            (368)      72,272
------------------------------------------------------------------------------------------------------------------------
Total operating expenses                              93,672         7,425         88,630            (368)     189,359
------------------------------------------------------------------------------------------------------------------------

OPERATING INCOME                                       3,755           905          4,592              --        9,252
------------------------------------------------------------------------------------------------------------------------

OTHER INCOME (EXPENSE):
   Equity in earnings (losses) of
     subsidiaries, net of tax                          2,154         1,324             --          (3,478)          --
   Intercompany charges                                   --           503           (503)             --           --
   Interest expense, net                              (2,964)         (130)          (342)             --       (3,436)
   Other expense, net                                     (6)           --            (60)             --          (66)
------------------------------------------------------------------------------------------------------------------------
Total other income (expense)                            (816)        1,697           (905)         (3,478)      (3,502)
------------------------------------------------------------------------------------------------------------------------

INCOME (LOSS) BEFORE INCOME TAX
   EXPENSE (BENEFIT) AND MINORITY INTEREST             2,939         2,602          3,687          (3,478)       5,750

Income tax expense (benefit)                             (79)          448          2,105              --        2,474
Minority interest                                         --            --            258              --          258
------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)                                  $   3,018     $   2,154       $  1,324        $ (3,478)  $    3,018
========================================================================================================================

Currency translation adjustment                       (3,359)       (2,100)        (2,728)          4,828       (3,359)
------------------------------------------------------------------------------------------------------------------------
COMPREHENSIVE INCOME (LOSS)                        $    (341)    $      54       $ (1,404)       $  1,350   $     (341)
========================================================================================================================
</TABLE>
                                       7
<PAGE>
NOTE 4. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED)

                      CONDENSED CONSOLIDATING BALANCE SHEET

<TABLE>
<CAPTION>
                                                                  GUARANTOR    NONGUARANTOR
At March 31, 2001                                    PARENT     SUBSIDIARIES   SUBSIDIARIES  ELIMINATIONS CONSOLIDATED
------------------------------------------------------------------------------------------------------------------------
                                                                              (in thousands)
ASSETS
   CURRENT ASSETS:
<S>                                                <C>           <C>             <C>           <C>          <C>
     Cash and cash equivalents                     $      124    $    2,415      $   9,539     $       --   $    12,078
     Trade accounts receivable, net                    89,422         5,674         70,322         (8,329)      157,089
     Prepaid expenses and other
       current assets                                   9,427            47         13,137             --        22,611
------------------------------------------------------------------------------------------------------------------------
     Total current assets                              98,973         8,136         92,998         (8,329)      191,778
------------------------------------------------------------------------------------------------------------------------

   PROPERTY AND EQUIPMENT, NET                         43,724         3,121         55,993             --       102,838
------------------------------------------------------------------------------------------------------------------------

   OTHER ASSETS:
     Goodwill, net                                     20,322            --         54,982             --        75,304
     Deferred income taxes                              7,622            --          6,408             --        14,030
     Other assets                                       7,667            77          1,614             --         9,358
     Investments in subsidiaries                      154,583       132,537             --       (287,120)           --
     Notes receivable, intercompany                        --        14,007         10,597        (24,604)           --
------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS                                       $  332,891    $  157,878      $ 222,592     $ (320,053)  $   393,308
========================================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY
   CURRENT LIABILITIES:
     Notes payable                                  $     --      $     --        $   110       $      --    $      110
     Current portion of long-term debt                 8,500            --          5,914              --        14,414
     Current portion of capital
       lease obligations                               2,429            --            956              --         3,385
     Trade accounts payable                            8,516         1,283         24,478          (8,329)       25,948
     Accrued expenses and other
       current liabilities                            25,458         2,012         32,753              --        60,223
------------------------------------------------------------------------------------------------------------------------
     Total current liabilities                        44,903         3,295         64,211          (8,329)      104,080

   LONG-TERM DEBT AND OTHER LIABILITIES:
     Long-term debt, excluding current portion       100,000            --             --              --       100,000
     Capital lease obligations,
       excluding current portion                       1,994            --          5,382              --         7,376
     Notes payable, intercompany                      10,597            --         14,007         (24,604)           --
     Deferred compensation                             2,577            --             --              --         2,577
     Deferred income taxes                                --            --            439              --           439
------------------------------------------------------------------------------------------------------------------------
     Total liabilities                               160,071         3,295         84,039         (32,933)      214,472
------------------------------------------------------------------------------------------------------------------------

MINORITY INTERESTS                                        --            --          6,016              --         6,016
------------------------------------------------------------------------------------------------------------------------

STOCKHOLDERS' EQUITY                                 172,820       154,583        132,537        (287,120)      172,820
------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 332,891     $ 157,878       $222,592      $ (320,053)  $   393,308
========================================================================================================================
</TABLE>
                                       8

<PAGE>

NOTE 4. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED)

                      CONDENSED CONSOLIDATING BALANCE SHEET
<TABLE>
<CAPTION>
                                                                  GUARANTOR    NONGUARANTOR
At December 31, 2000                                 PARENT     SUBSIDIARIES   SUBSIDIARIES  ELIMINATIONS CONSOLIDATED
------------------------------------------------------------------------------------------------------------------------
                                                                              (in thousands)
ASSETS
   CURRENT ASSETS:
<S>                                                <C>           <C>             <C>            <C>         <C>
     Cash and cash equivalents                     $   4,970     $   1,730       $ 13,197       $      --   $   19,897
     Trade accounts receivable, net                   80,979         3,114         68,221          (5,652)     146,662
     Prepaid expenses and other
       current assets                                  6,543            25         13,545              --       20,113
------------------------------------------------------------------------------------------------------------------------
     Total current assets                             92,492         4,869         94,963          (5,652)     186,672
------------------------------------------------------------------------------------------------------------------------

   PROPERTY AND EQUIPMENT, NET                        46,062         3,303         50,428              --       99,793
------------------------------------------------------------------------------------------------------------------------

   OTHER ASSETS:
     Goodwill, net                                    20,571            --         57,872              --       78,443
     Deferred income taxes                               781            --          6,557              --        7,338
     Other assets                                      7,804            78             94              --        7,976
     Investments in subsidiaries                     158,086       137,491             --        (295,577)          --
     Notes receivable, intercompany                       --        14,914         11,400         (26,314)          --
------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS                                       $ 325,796     $ 160,655       $221,314       $(327,543)  $  380,222
========================================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY
   CURRENT LIABILITIES:
     Notes payable                                  $     --      $     --        $   302       $      --    $     302
     Current portion of long-term debt                    --            --          1,120              --        1,120
     Current portion of capital
       lease obligations                               2,570            --          1,394              --        3,964
     Trade accounts payable                            9,312           914         23,332          (5,652)      27,906
     Accrued expenses and other
       current liabilities                            27,990         1,655         30,152              --       59,797
------------------------------------------------------------------------------------------------------------------------
     Total current liabilities                        39,872         2,569         56,300          (5,652)      93,089

   LONG-TERM DEBT AND OTHER LIABILITIES:
     Long-term debt, excluding current portion       100,000            --             --              --      100,000
     Capital lease obligations,
       excluding current portion                       2,494            --          5,847              --        8,341
     Notes payable, intercompany                      11,400            --         14,914         (26,314)          --
     Deferred compensation                             2,448            --             --              --        2,448
     Deferred income taxes                                --            --            461              --          461
------------------------------------------------------------------------------------------------------------------------
     Total liabilities                               156,214         2,569         77,522         (31,966)     204,339
------------------------------------------------------------------------------------------------------------------------

MINORITY INTERESTS                                        --            --          6,301              --        6,301
------------------------------------------------------------------------------------------------------------------------

STOCKHOLDERS' EQUITY                                 169,582       158,086        137,491        (295,577)     169,582
------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 325,796     $ 160,655       $221,314      $ (327,543)  $  380,222
========================================================================================================================
</TABLE>
                                       9
<PAGE>

NOTE 4. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED)

                 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>

                                                                   GUARANTOR     NONGUARANTOR
Three Months Ended March 31, 2001                         PARENT   SUBSIDIARIES  SUBSIDIARIES  ELIMINATIONS  CONSOLIDATED
----------------------------------------------------------------------------------------------------------------------------
                                                                              (in thousands)
<S>                                                      <C>         <C>         <C>           <C>           <C>
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES      $ (3,626)   $  4,753    $ (2,939)     $     --      $ (1,812)
----------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in subsidiaries                               (987)     (4,925)         --         5,912            --
   Purchases of property and equipment                     (5,539)       (130)     (9,494)           --       (15,163)
   Proceeds from sales of property and equipment                1          --          30            --            31
   Increase in other assets                                   138          --      (1,567)           --        (1,429)
----------------------------------------------------------------------------------------------------------------------------
   Net cash provided by (used in) investing activities     (6,387)     (5,055)    (11,031)        5,912       (16,561)
----------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Repayments of notes payable                                 --          --        (191)           --          (191)
   Borrowings on debt                                       8,500          --       4,992            --        13,492
   Repayment of debt and capital lease obligations           (641)         --        (519)           --        (1,160)
   Net capital contribution from parent                        --         987       4,925        (5,912)           --
   Net borrowings and payments on
     intercompany balances                                 (2,492)         --       2,492            --            --
   Common stock issued, net of expenses                        94          --          --            --            94
   Purchases of treasury stock                               (245)         --          --            --          (245)
   Other                                                      (49)         --          --            --           (49)
----------------------------------------------------------------------------------------------------------------------------
   Net cash provided by (used in) financing activities      5,167         987      11,699        (5,912)       11,941
----------------------------------------------------------------------------------------------------------------------------

Effect of exchange rates on cash                               --          --      (1,387)           --        (1,387)
----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH                            (4,846)        685      (3,658)           --        (7,819)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD              4,970       1,730      13,197            --        19,897
----------------------------------------------------------------------------------------------------------------------------
CASH AND EQUIVALENTS, END OF PERIOD                      $    124    $  2,415    $  9,539      $     --      $ 12,078
============================================================================================================================
</TABLE>
                                       10
<PAGE>

NOTE 4. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION (CONTINUED)

                 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
                                                                 GUARANTOR   NONGUARANTOR
Three Months Ended March 31, 2000                     PARENT    SUBSIDIARIES SUBSIDIARIES   ELIMINATIONS   CONSOLIDATED
------------------------------------------------------------------------------------------------------------------------
                                                                            (in thousands)
<S>                                                  <C>         <C>           <C>           <C>           <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES            $  3,856    $  3,052      $ 13,912      $     --      $ 20,820
------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in subsidiaries                          1,987         676            --        (2,663)           --
   Purchases of property and equipment                 (1,881)        (56)       (3,154)           --        (5,091)
------------------------------------------------------------------------------------------------------------------------------
   Net cash provided by (used in) investing
     activities                                           106         620        (3,154)       (2,663)       (5,091)
------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Repayments of notes payable                             --          --        (2,632)           --        (2,632)
   Borrowings on debt                                  15,000          --            --            --        15,000
   Repayment of debt and capital lease obligations    (33,055)         --        (2,263)           --       (35,318)
   Net capital contribution from parent                    --      (1,987)         (676)        2,663            --
   Net borrowings and payments on
     intercompany balances                              5,177          --        (5,177)           --            --
   Common stock issued, net of expenses                 2,544          --            --            --         2,544
   Other                                                   (7)         --            --            --            (7)
------------------------------------------------------------------------------------------------------------------------------
   Net cash provided by (used in) financing
     activities                                       (10,341)     (1,987)      (10,748)        2,663       (20,413)
------------------------------------------------------------------------------------------------------------------------------

Effect of exchange rates on cash                           --          --           755            --           755
------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH                        (6,379)      1,685           765            --        (3,929)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD          7,477       2,102        12,726            --        22,305
------------------------------------------------------------------------------------------------------------------------------
CASH AND EQUIVALENTS, END OF PERIOD                  $  1,098    $  3,787      $ 13,491      $     --      $ 18,376
==============================================================================================================================
</TABLE>
                                       11

<PAGE>

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

GENERAL

References  in this  report to "we" and "our" are to SITEL  Corporation  and its
subsidiaries, collectively.

We  are  the  world's  leading  contact  center  experts   supporting   Customer
Relationship Management (CRM) solutions for large corporations in North America,
Europe,  Asia  Pacific,  and Latin  America.  We provide  customer  acquisition,
customer care,  technical support and risk management  services on an outsourced
basis, as well as operational and information technology consulting services for
the in-house  market.  We serve  clients  primarily in the  consumer,  financial
services, insurance, telecommunications, technology, and utilities sectors.

In  Management's  Discussion  and  Analysis,  we provide  information  about our
results of operations, financial condition, capital resources, and certain other
matters affecting our operating results for the periods covered by this report.

As you read this discussion and analysis,  refer to our Consolidated  Statements
of Income,  which  present the results of our  operations  for the three  months
ended March 31, 2001 and 2000,  and are  summarized in the following  table.  We
analyze and explain the  differences  between  periods for the components of net
income.  Our analysis is important in making  decisions about your investment in
SITEL Corporation.

--------------------------------------------------------------------------------

RESULTS OF OPERATIONS  FOR THE THREE MONTHS ENDED MARCH 31, 2001 COMPARED TO THE
SAME PERIOD OF 2000

In this  section,  we discuss our earnings and the factors  affecting  them.  We
begin with a general  overview,  then  separately  discuss the components of net
income in more detail.

OVERVIEW
--------

During the three  months  ended March 31, 2001,  our net income  increased  $7.6
million compared to the same period of 2000 due to a $9.8 million net income tax
benefit resulting from an election to treat certain of our foreign operations as
branches of our U.S. company for U.S. income tax purposes.  Excluding the income
tax benefit,  net income  decreased  in the first  quarter of 2001 mostly due to
lower revenues and reduced labor efficiencies.

COMPONENTS OF NET INCOME
------------------------

The   following   table    summarizes   our   income   statement   data   on   a
percentage-of-revenue basis.
<TABLE>
<CAPTION>
                                                                     THREE MONTHS ENDED MARCH 31,
                                                              --------------------------------------------
                                                                     2001                       2000
                                                              ------------------        ------------------
                                                                  $          %               $          %
                                                              ---------  -------        ---------  -------
                                                                            (in thousands)
<S>                                                          <C>         <C>          <C>           <C>
REVENUES                                                     $  184,004  100.0%       $  198,611    100.0%
-----------------------------------------------------------------------------------------------------------

Direct labor and telecommunications expenses                    101,629   55.2%          104,551     52.6%
Subcontracted and other services expenses                         9,290    5.1%           12,536      6.3%
Operating, selling and administrative expenses                   68,593   37.3%           72,272     36.4%
-----------------------------------------------------------------------------------------------------------
OPERATING INCOME                                                  4,492    2.4%            9,252      4.7%

Interest expense, net                                            (2,850)  (1.6%)          (3,436)    (1.8%)
Other expense, net                                                 (143)  (0.0%)             (66)    (0.0%)
-----------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAX EXPENSE (BENEFIT)
   AND MINORITY INTEREST                                          1,499    0.8%            5,750      2.9%

Income tax expense (benefit)                                     (9,185)  (5.0%)           2,474      1.3%
Minority interest                                                    54    0.0%              258      0.1%
-----------------------------------------------------------------------------------------------------------
NET INCOME                                                   $   10,630    5.8%       $    3,018      1.5%
===========================================================================================================
</TABLE>
                                       12
<PAGE>

REVENUES
Revenues decreased $14.6 million, or 7.4%, in the first quarter of 2001 compared
to the same period of 2000.  The changes in  revenues by  geographic  region are
shown in the following table:

                                        $           %
-------------------------------------------------------
                                       (in millions)

North America                      $   4.6        4.1%
Europe                               (17.2)     (24.4%)
Asia Pacific                          (2.8)     (30.9%)
Latin America                          0.8       11.8%

Revenues  decreased in Europe mostly due to the loss of two large clients in the
United Kingdom,  which took their  acquisition  businesses  in-house,  and lower
revenues in Spain.  The strength of the U.S. dollar versus the British pound and
Euro  accounted  for about $4.8 million of this  decrease.  The decrease in Asia
Pacific related to  restructuring  our operations in Japan and  transferring our
existing Japanese business to Bellsystem24 in the second quarter of 2000.

The increase in North America was primarily  attributable to additional customer
care  services we provided to a number of our large  global  clients,  which was
partially offset by a reduction in customer acquisition  services.  The increase
in Latin America was attributable to work we performed for new clients in Brazil
and Mexico.

We evaluate the  recoverability of our long-lived  assets,  including  goodwill,
based on estimated  undiscounted  future operating cash flows.  While Management
currently believes that estimated future operating cash flows will be sufficient
to recover such assets,  there can be no assurance  that such  estimates will be
achieved. If estimated future operating cash flows are not achieved, we may need
to record impairment losses on these assets in future periods.

DIRECT LABOR AND TELECOMMUNICATIONS EXPENSES
Direct Labor and  Telecommunications  Expenses  include the  compensation of our
customer  service  professionals  and their first line supervisors and telephone
usage expenses directly related to the production of revenue.

Direct labor and  telecommunications  expenses as a  percentage  of revenues can
vary based on the nature of the contract, the nature of the work, and the market
in  which  the   services   are   provided.   Accordingly,   direct   labor  and
telecommunications  expenses as a  percentage  of revenues  can vary,  sometimes
significantly, from period to period.

Direct Labor and Telecommunications Expenses decreased $2.9 million, or 2.8%, in
the first  quarter of 2001  compared to the same period of 2000. As a percentage
of revenues,  Direct Labor and Telecommunications  Expenses increased from 52.6%
in the  first  quarter  of 2000 to  55.2% in the  first  quarter  of 2001.  This
increase  was  primarily  due  to  reduced   labor   efficiency   caused  by  an
unanticipated decline in revenues during the first quarter of 2001.

SUBCONTRACTED AND OTHER SERVICES EXPENSES
Subcontracted  and Other Services  Expenses include services provided to clients
through subcontractors and other out-of-pocket expenses. Subcontracted and Other
Services Expenses decreased $3.2 million, or 25.9%, in the first quarter of 2001
compared  to the same  period of 2000.  The  decline in these  expenses  was due
mostly to a reduction in the use of third party contact  centers in the U.S. due
to a declining customer acquisition business and lower reimbursable  expenses in
the U.S. and Europe.

OPERATING, SELLING AND ADMINISTRATIVE EXPENSES
Operating,  Selling and  Administrative  Expenses represent expenses incurred to
directly  support  and  manage  the  business,  including  costs of  management,
administration,   technology,   facilities,   depreciation   and   amortization,
maintenance, sales and marketing, and client support services.

Operating,  Selling and Administrative Expenses decreased $3.7 million, or 5.1%,
in the  first  quarter  of 2001  compared  to the  same  period  of  2000.  As a
percentage of revenues, Operating, Selling and Administrative Expenses increased
from 36.4% in the first quarter of 2000 to 37.3% in the first quarter of 2001 as
these expenses do not change proportionate to short-term changes in revenue.

OPERATING INCOME
Operating income decreased $4.8 million,  or 51.4%, in the first quarter of 2001
compared to the same period of 2000.  As a  percentage  of  revenues,  operating
income  decreased  from 4.7% in the first  quarter  of 2000 to 2.4% in the first
quarter of 2001 due to the factors discussed above.

INTEREST EXPENSE, NET
Interest expense,  net of interest income,  decreased $0.6 million, or 17.1%, in
the first quarter of 2001  compared to the same period of 2000,  mostly due to a
lower level of average debt outstanding during 2001.

INCOME TAX EXPENSE (BENEFIT)
We recorded an income tax benefit of $9.2  million in the first  quarter of 2001
compared  to income tax  expense of $2.5  million in the first  quarter of 2000.
This change was primarily  the result of a $9.8 million net deferred  income tax
benefit we recorded in the first  quarter of 2001 that resulted from an election
to treat certain of our

                                       13
<PAGE>

foreign operations as branches of our U.S. company for U.S. income tax purposes.

Excluding the $9.8 million income tax benefit mentioned above, our first quarter
2001  income tax  expense as a  percentage  of income  before  income  taxes and
minority  interest  was  39%.  The  difference  between  this  39%  rate and the
statutory U.S. Federal rate of 34% was primarily due to non-deductible goodwill,
net operating losses in certain  European  subsidiaries for which no tax benefit
was recognized, and U.S. state and local income taxes.

NET INCOME
Net income  increased  $7.6 million in the first quarter of 2001 compared to the
same period of 2000.  Excluding  the income tax  benefit  mentioned  above,  net
income decreased $2.2 million.

FINANCIAL CONDITION

CASH FLOWS

The following table sets forth summary cash flow data for the periods indicated.
Please refer to this summary as you read our  discussion of the sources and uses
of cash in each year.

Three Months Ended March 31,           2001        2000
---------------------------------------------------------
                                        (in thousands)
NET CASH PROVIDED BY (USED IN):
   Operating activities            $ (1,812)   $ 20,820
   Investing activities             (16,561)     (5,091)
   Financing activities              11,941     (20,413)

2001
In the first quarter of 2001, we had income before depreciation and amortization
of $21.0  million,  which was more than  offset by a $13.8  million  increase in
trade receivables and an $8.8 million increase in other assets.  The increase in
other assets was primarily  attributable to the $9.8 million deferred income tax
asset we recorded that resulted from an election to treat certain of our foreign
operations  as branches of our U.S.  company for U.S.  income tax  purposes.  We
estimate  that $3.0 million of this tax benefit  will be realized in 2001,  with
the remaining $6.8 million realized in years after 2001. The realization of this
tax benefit will positively impact our cash flows in those years.

In the first quarter of 2001, we used cash for  investing  activities  mostly to
purchase $15.2 million of property and  equipment,  and we invested $1.2 million
in a joint venture in India.

In the first quarter of 2001,  cash provided by financing  activities  came from
additional borrowings of $13.5 million under our revolving credit facility.

2000
In the first quarter of 2000,  cash provided by operating  activities  consisted
mostly of income before  depreciation  and  amortization of $15.2 million and an
increase in other liabilities of $6.0 million.

In the first quarter of 2000, we used cash for investing  activities to purchase
$5.1 million of property and equipment.

In the first quarter of 2000, we used cash for financing activities primarily to
repay borrowings under our revolving credit facility.

CAPITAL RESOURCES

We have  historically  used funds generated from operations,  leases of property
and equipment,  equity capital,  senior subordinated notes, and borrowings under
credit  facilities  with  banks  to  finance  business   acquisitions,   capital
expenditures, and working capital requirements.

We have a $75  million  senior  secured  credit  facility,  with the  ability to
increase the size of the facility to $100 million,  which expires in April 2005.
Under the terms of this agreement, we may borrow in U.S. dollars, British pounds
sterling,  and Euros,  which allows us to consolidate our U.S. and European bank
lines into a single multi-borrower, multi-currency facility.

Our  obligations  under  the  facility  have  been  guaranteed  by our  domestic
subsidiaries  and  certain  foreign  subsidiaries  and are  secured  by liens on
substantially  all of the  assets of SITEL  Corporation  and such  subsidiaries,
including a pledge of our shares in such  subsidiaries and certain other foreign
subsidiaries.  The facility  contains  certain  financial  covenants and certain
restrictions on, among other things, our ability to:

o   incur additional indebtedness,
o   pay dividends or make certain restricted payments,
o   make certain investments,
o   sell assets, or
o   merge with another company.

The facility  becomes due and payable upon a change of control of the Company as
defined in the credit  agreement.  At March 31,  2001,  we had $60.5  million of
available borrowings under this facility.

                                       14
<PAGE>

We expect to finance our current operations,  planned capital expenditures,  and
internal  growth  for  the   foreseeable   future  using  funds  generated  from
operations,  existing  cash,  leases of property  and  equipment,  and the funds
available under our credit facility.  Future  acquisitions,  if any, may require
additional debt or equity financing.

We may also use these  sources of funds to  repurchase  up to $10 million of our
common stock under our stock repurchase program that was authorized by our Board
of Directors in February 2001. Under the program,  we may repurchase shares from
time  to  time in the  open  market  or in  privately  negotiated  transactions,
depending on general business and market conditions. The program will provide us
with  treasury  shares for general  corporate  purposes,  including  stock to be
issued under employee  stock option plans.  During the first quarter of 2001, we
repurchased 71,800 shares at a cost of $0.2 million under the program.

OTHER MATTERS

QUARTERLY RESULTS AND SEASONALITY
We have experienced, and expect to continue to experience,  quarterly variations
in our results of operations mostly due to:

o    the timing of our clients' customer relationship management initiatives and
     customer acquisition and loyalty campaigns,
o    the commencement and terms of new contracts,
o    revenue mix,
o    the timing of additional operating, selling, and administrative expenses to
     support new business, and
o    the timing of recognition of incentive fees.

We experience periodic fluctuations in our results of operations related to both
the start-up costs associated with expansion and the  implementation of clients'
CRM  activities.  In  addition,  our  business  tends to be  slower in the third
quarter due to summer  holidays in Europe,  and in the first  quarter due to the
changeover of client marketing  strategies that often occurs at the beginning of
the year.

EFFECTS OF INFLATION
Inflation has not had a significant effect on our operations. However, there can
be no assurance that inflation will not have a material effect on our operations
in the future.

ACCOUNTING PRONOUNCEMENTS
In June 2000,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial Accounting Standards (SFAS) No. 138, Accounting for Certain Derivative
Investments  and  Certain  Hedging  Activities.   The  standard  amends  certain
provisions of SFAS No. 133,  Accounting for Derivative  Investments  and Hedging
Activities,  which was issued in June 1998 to establish accounting standards for
derivative  instruments and for hedging activities.  We adopted these accounting
pronouncements  effective  January 1, 2001.  The  adoption  of these  standards,
including the valuation of derivative  instruments  outstanding on the effective
date, and the related cumulative effect of adoption did not significantly impact
our consolidated financial statements.

--------------------------------------------------------------------------------

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market  risks  associated  primarily  with  changes in foreign
currency exchange rates. We have operations in many parts of the world; however,
both revenues and expenses of those operations are typically  denominated in the
currency of the country of operations,  providing a natural hedge.  From time to
time,  we enter into  certain  hedging  transactions  designed to hedge  foreign
currency  exchange  risk related to short-term  intercompany  loans and specific
foreign  currency  transactions,  however  the  amounts  involved  have not been
material.

We  are  also  exposed  to  changes  in  interest  rates  on our  variable  rate
borrowings.  Interest rates on our Senior  Subordinated  Notes and capital lease
obligations  are fixed,  but rates on borrowings  under our bank credit facility
are  variable.  During  the three  months  ended  March 31,  2001,  our  average
borrowings  under  our bank  credit  facility  were $5.5  million.  Based on our
projected  cash needs for the  foreseeable  future,  we do not  expect  that our
exposure  to  changes  in  interest  rates  will have a  material  impact on our
interest expense.

                                       15
<PAGE>

PART II - OTHER INFORMATION

ITEM 5. OTHER INFORMATION

FORWARD-LOOKING STATEMENTS

We make statements in this report that are considered forward-looking statements
within the  meaning of the  Securities  Exchange  Act of 1934.  Sometimes  these
statements  will  contain  words  such  as  "believes,"   "expects,"  "intends,"
"should,"  "will,"  "plans," and other similar words.  These  statements are not
guarantees of our future  performance  and are subject to risks,  uncertainties,
and  other  important  factors  that  could  cause  our  actual  performance  or
achievements  to be  materially  different  from those we project.  These risks,
uncertainties, and factors include, but are not limited to:

o    reliance on major clients,
o    conditions affecting clients' industries,
o    clients' budgets and plans,
o    unanticipated labor, contract or technical difficulties,
o    delays in ramp up of services under contracts,
o    reliance on major subcontractors and strategic partners,
o    risks associated with managing a global business,
o    fluctuations in operating results,
o    reliance on telecommunications and computer technology,
o    dependence on labor force,
o    industry regulation,
o    general and local economic conditions,
o    competitive pressures in our industry,
o    foreign currency risks,
o    the effects of leverage,
o    restrictions imposed by the terms of indebtedness, and
o    dependence on key personnel and control by management.

Given  these  uncertainties,  you  should  not  place  undue  reliance  on these
forward-looking statements. Please see the other sections of this report and our
other periodic  reports filed with the  Securities  and Exchange  Commission for
more information on these factors.

--------------------------------------------------------------------------------

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits:

Exhibit No.
-----------

  10.1       Employment Agreement with Dale R. Schuster
  10.2       Separation Agreement with Phillip A. Clough
  10.3       Separation Agreement with W. Gar Richlin
  10.4       Consulting Arrangement with DreamField Partners, Inc.

(b)  Reports on Form 8-K:

     None.

                                       16
<PAGE>
                                    SIGNATURE


Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                                       SITEL Corporation
                                                         (REGISTRANT)


Date:    May 14, 2001                     By  /s/     James E. Stevenson
                                              --------------------------------
                                                      JAMES E. STEVENSON
                                                    Chief Financial Officer
                                                 (Duly Authorized Officer and
                                                 Principal Financial Officer)

                                       17