<PAGE>






                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q


               [X]    Quarterly Report Pursuant to Section 13 or
                     15(d) of the Securities Exchange Act of 1934.
                                        
                   For the quarterly period ended September 30, 1997
                                        
                                        
                                       or
                                        
                                        
               [ ]   Transition Report Pursuant to Section  13 or 15(d)
                     of the Securities Exchange Act of 1934.
                                        
                        For the transition period _____ to ______
                                        
                                        
                         Commission File Number 1-12577


                                        
                                SITEL CORPORATION
             (Exact name of registrant as specified in its charter)


                                        
          Minnesota                                            47-0684333
  (State or jurisdiction of                                 (I.R.S. Employer
incorporation or organization)                             Identification No.)


                               13215 BIRCH STREET
                              OMAHA, NEBRASKA 68164
                                 (402)  963-6810
 (Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
                                        
      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
                                                _____    _____
                                        
     As of November 7, 1997, the Company had 63,029,792 shares of Common Stock
outstanding.
                                        
<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES
                                        
                                        

PART I - FINANCIAL INFORMATION


Item 1.  Financial Statements


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

Item 2.  Management's Discussion and Analysis of Results of Operations      
            and Financial Condition...................................     7


PART II - OTHER INFORMATION


Item 2.  Changes in Securities .......................................    12

Item 5.  Other Information ...........................................    12

Item 6.  Exhibits and Reports on Form 8-K.............................    12

Signature.............................................................    13

<PAGE>
<TABLE>
                           SITEL CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED CONDENSED  BALANCE SHEETS
                        December 31, 1996 and September 30, 1997
                        (dollars in thousands, except share data)
                                                                            
                             ASSETS                           DECEMBER     SEPTEMBER
                                                                 31,           30,
                                                                1996          1997
                                                               _______      _______
<C>                                                          <S>         <S>
Current assets:                                                          (unaudited)
     Cash and cash equivalents ...........................   $  25,710 $     23,501
     Trade accounts receivable (net of allowance for                            
        doubtful accounts of $ 3,188 and $ 4,065,                               
        respectively) ....................................      65,477       99,342
     Marketable securities ...............................       1,740          564
     Prepaid expenses ....................................       3,007        5,437
     Other assets ........................................       2,907        3,146
     Deferred income taxes ...............................         512        1,076
                                                               _______      _______
                    Total current assets                        99,353      133,066
Property and equipment, net ..............................      59,109      106,884
Deferred income taxes ....................................      11,187       11,657
Goodwill, net ............................................      40,110       94,275
Other assets .............................................       1,925        5,107
                                                               _______      _______
                    Total assets                             $ 211,684    $ 350,989
                                                               =======      =======
              LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                                                     
     Note payable - bank .................................   $   3,638    $  12,074
     Current portion of long-term debt ...................         759        1,534
     Current portion of  capitalized lease obligations ...       3,032        3,528
     Trade accounts payable ..............................      18,775       22,224
     Income taxes payable ................................       3,815        4,773
     Accrued compensation ................................      14,812       13,951
     Accrued operating expenses ..........................       9,026       12,896
     Deferred revenue and other ..........................       8,660        8,006
     Purchase price payable ..............................          --       14,043
                                                               _______      _______
                    Total current liabilities ............      62,517       93,029
                                                               _______      _______
Long-term debt, excluding current portion ................       1,720       78,982
Capitalized lease obligations, excluding current portion         3,141        7,297
Purchase price payable ...................................      15,928            -
Deferred compensation ....................................       1,461        1,635
                                                                                
Minority interest .........................................        192          210
                                                                                
Stockholders' equity:                                                           
     Common stock, voting, $.001 par value, 200,000,000                         
        shares authorized, 58,875,660  and 62,616,314                           
        shares issued and outstanding, respectively ......          59           63
     Paid-in capital .....................................     117,736      154,461
     Currency exchange adjustment ........................       1,311      (5,323)
     Unrealized gain on marketable securities,                                  
     net of taxes ........................................       1,017          247
     Retained earnings ...................................       6,602       20,388
                                                               _______      _______
                    Total stockholders' equity ...........     126,725      169,836
                                                               _______      _______
                                                                                
                    Total liabilities and stockholders'                         
                       equity.............................   $ 211,684    $ 350,989
                                                               =======      =======
                             
The accompanying notes are an integral part of the consolidated condensed financial statements.
</TABLE>
                             
<PAGE>
<TABLE>
                                 SITEL CORPORATION AND SUBSIDIARIES
                                CONSOLIDATED CONDENSED STATEMENTS OF
                                          INCOME (LOSS)
                                           (unaudited)
                                      
                                      
                                             For the Three       For the Nine
                                             Months Ended       Months Ended
                                        September September September September
                                        30, 1997  30, 1997  30, 1997  30, 1997
                                         ________  _______  _______   _______
(in thousands, except per share data)                                    
<S>                                      <C>      <C>      <C>       <C>  
Revenues ............................... $ 85,144 $120,248 $213,929  $349,775
                                          _______  _______  _______   _______
Operating expenses:                                                          
     Cost of services ..................   44,433   67,913  112,772   191,376
     Selling, general and administrative                                     
          expenses .....................   33,040   49,471   82,317   133,013
                                          _______  _______  _______   _______
                                                                             
               Total operating expense..   77,473  117,384  195,089   324,389
                                          _______  _______  _______   _______
                                                                             
               Operating income ........    7,671    2,864   18,840    25,386
                                                                             
Other income (expense):                                                      
     Interest income (expense), net ....    (130)  (1,512)      (4)   (3,199)
     Transaction related expense .......  (6,322)        -  (6,988)         -
     Other income (expense) ............     (19)      123     (19)        62
                                          _______  _______  _______   _______
                                                                             
Income before income taxes                                                   
   and minority interest ...............    1,200    1,475   11,829    22,249
                                                                             
Income tax expense .....................    2,514      739    6,996     8,377
                                                                             
Minority interest ......................       23       10       41        86
                                          _______  _______  _______   _______
                                                                             
Net income (loss) ...................... $ (1,337) $   726 $  4,792 $  13,786
                                          =======  =======  =======   =======
                                                                             
Per share amounts:                                                           
     Earnings (loss) per common and      $  (0.02) $   .01 $     .07 $     .20
          common equivalents share .....   =======  =======  =======   =======
                                                                             
                                                                             
Weighted average common and common                                           
     equivalent shares outstanding .....    58,441   69,316   65,705    68,584
                                           =======  =======  =======    ======
                                                                         
The accompanying notes are an integral part of the consolidated condensed
financial statements.
</TABLE>

<PAGE>
<TABLE>
                             SITEL CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED CONDENSED  STATEMENTS OF CASH FLOWS
                                         (unaudited)
                                                             For Nine Months Ended
(dollars in thousands)                                     September     September
                                                           30, 1996       30,1997
                                                         ____________   __________
<S>                                                    <C>            <C>
Net income ..........................................  $        4,792 $     13,786
Adjustments to reconcile net income to net cash                                  
  provided by operating activities:
 Depreciation and amortization .....................            8,336       21,117
 Change in assets and liabilities:                                              
    Trade accounts receivable........................        (28,233)     (32,440)
    Other assets.....................................           (282)      (6,150)
    Trade accounts payable...........................           2,361        2,750
    Other liabilities................................          14,712        7,290
                                                         ____________   __________
                                                                               
         Net cash provided by operating activities...          1,686        6,353
                                                         ____________   __________
                                                                                
         Cash flows from investing activities:                                  
              Purchases of property and equipment....        (25,967)     (62,569)
              Acquisition of businesses, net of cash         (27,936)     (35,017)
                acquired.............................
              Investments in marketable securities...        (63,793)         --
              Sale of marketable securities..........          70,688         --
              Changes in other assets, net...........            (89)       (127)
                                                                                
         Net cash used in investing activities.......         (47,097)   (97,713)
                                                           ___________   _________
               
                                                                                
         Cash flows from financing activities:                                  
              Borrowings on note payable                       18,542     77,060
              Repayments of note payable                     (14,326)   (68,440)
              Borrowings on long-term debt                        604     96,862
              Repayment of long-term debt and 
                capitalized lease obligations........          (1,119)   (14,913)
              Repayment of redeemable preference
                shares...............................          (1,630)        --
              State incentive credits received.......              --        900
              Common stock issued for option exercises 
                and in public offering, net of 
                expenses.............................          42,243        227
                                                          ____________   _________
                                                                                
        Net cash provided by financing activities ...          44,314     91,696
                                                          ____________   _________
                                                                                
        Effect of exchange rates on cash.............           1,465    (2,545)
                                                          ____________   _________
                                                                               
        Net increase (decrease) in cash ............              368    (2,209)
        Cash and cash equivalents, beginning of
           period...................................            4,531     25,710
                                                          ____________   _________
        Cash and cash equivalents, end of period....   $        4,899 $   23,501
                                                          ============   =========
                                                                        
Supplemental schedule of non-cash financing and investing activities:
_____________________________________________________________________
In the first nine months of 1997, the Company issued approximately 2.3
million shares of the Company's common stock in connection with acquisitions.
                              
The accompanying notes are an integral part of the consolidated condensed 
financial statements.
</TABLE>
                              
<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES
               NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATMENTS



1.   BASIS OF PRESENTATION:

The consolidated condensed balance sheet of  SITEL Corporation and Subsidiaries
(the "Company") at December 31, 1996 was obtained from the Company's audited
balance sheet as of that date.  All other financial statements contained herein
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.  Such adjustments consist only of
normal recurring items.  The consolidated condensed financial statements should
be read in conjunction with the consolidated financial statements and notes
thereto, together with management's discussion and analysis of financial
condition and results of operations, contained in the Company's Form 10-K for
the year ended December 31, 1996.

Where appropriate, items within the consolidated financial statements and notes
thereto have been reclassified from previous years to conform to current year
presentation.

2.  EARNINGS PER SHARE:

Earnings per share attributable to common shareholders has been computed using
the weighted average number of common and common equivalent shares outstanding:


                             Three Months Ended    Nine Months Ended
                             9/30/96    9/30/97    9/30/96    9/30/97
                             _______    _______    _______    _______
                               (in thousands)        (in thousands)
        Common stock          58,441      62,475     57,396    61,263
        Common stock                                                 
        equivalents-
        stock options              -       6,841      8,309     7,321
                             _______     _______    _______   _______
                              58,441      69,316     65,705    68,584
                             =======     =======    =======    ======



In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128, "Earnings Per Share" ("SFAS 128").  SFAS
128 revises the calculation and presentation provisions of Accounting Principles
Board Opinion No. 15 ("APB 15") and related interpretations.  SFAS 128, which
will require retroactive application, is effective for the Company's year ended
December 31, 1997.  While the Company has not determined the full effect of
adopting SFAS 128, it believes that the adoption will not have a significant
effect on its reported earnings per share, except that the presentation of basic
earnings per share, calculated in accordance with SFAS 128, will be greater than
the previously reported "Earnings per common and common equivalent share,"
calculated in accordance with APB 15 and related interpretations.  The Company
also believes that diluted earnings per share, calculated in accordance with
SFAS 128, will be similar to the previously reported "Earnings per common and
common equivalent share,"  calculated in accordance with APB 15 and related
interpretations.

<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES
               NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATMENTS



3.  ACQUISITIONS:

During the periods covered by this report the Company completed several
acquisitions.  In January 1997, the Company acquired all of the outstanding
capital stock of Telebusiness Holdings, a systems integration company based in
Australia and New Zealand.  In February 1997, the Company acquired substantially
all of the assets of Exton Technology Group, a teleservicing technical support
company based in Madison, Wisconsin.  In March 1997, the Company acquired all of
the outstanding stock of Levita Group Pty Ltd., an Australian based
teleservicing company, and all of the outstanding stock of L&R Group Limited, a
United Kingdom based teleservicing consulting firm.  In May 1997, the Company
acquired all of the outstanding stock of Support Systems Developers, Inc., a
teleservices technical support company based in Vienna, Virginia.  In July 1997,
the Company acquired all of the outstanding stock of Svanberg & Co. Intressenter
AB, a teleservices firm based in Sweden.  In September 1997, the Company
acquired all of the outstanding stock of Telephone Marketing Services (Ireland),
Ltd., a teleservices firm based in Ireland.

The total cost of these acquisitions was approximately $65 million, subject to
certain adjustments and excluding transaction costs and liabilities assumed.
Included in the total cost was the issuance of approximately 2.3 million shares
of the Company's common stock valued at approximately $30 million.

In June 1996, the Company had also acquired Teleaction, S.A., a Spanish
teleservicing company through the payment of approximately $25 million for 69.2%
of the capital stock and an unconditional commitment (the "purchase price
payable") to close the purchase of the remaining 30.8% in June 1998.  Subsequent
to the end of the third quarter of 1997, the Company completed the acquisition
of the remaining 30.8% for approximately $14 million, a valuation consistent
with the terms of the original agreement.

These acquisitions have been accounted for as purchases and accordingly, the
acquired assets and liabilities have been recorded at their estimated fair
values at the dates of acquisition, and the results of operations have been
included in the accompanying consolidated condensed financial statements since
the dates of acquisition.  The initial purchase price allocations for the
acquisitions are based on current estimates and the Company will make the final
purchase price allocations based upon the final values for certain assets and
liabilities.  The total purchase price in excess of the fair market value of the
net assets acquired was recorded as goodwill and is being amortized on a
straight line basis over 25 years.

The following pro forma information shows the results of the Company as though
the acquisitions described earlier occurred as of the beginning of each period
presented.  These results include certain adjustments consistent with the
Company's policy related to amortization of intangible assets.  These results
are not necessarily indicative of the results that actually would have been
obtained if the acquisitions had been in effect at the beginning of each period
or which may be attained in the future.

                                         Nine Months Ended
                                        9/30/96        9/30/97
                                        _______        _______
                                (in thousands, except per share data)
       Revenue                        $  257,222    $  359,444
       Net Income                     $    4,554    $   13,210
       Earnings Per Common and                                
           Common Equivalents Share   $     0.07    $     0.19
                                                       


<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES



4.  INCOME TAXES:

The difference between the Company's income tax expense as reported in the
accompanying financial statements and that which would be calculated using the
statutory Federal income tax rate of 34% on income is primarily due to non-
deductible business acquisition expenses and international, state and local
income taxes.

5.  LONG TERM DEBT AND NOTES PAYABLE:

In July, 1997, the Company reached agreement with a syndicate of commercial
banks for a $150 million revolving credit facility.  The commitment of the banks
under this facility expires in July, 2002.  The facility provides for interest
at a variable rate, generally payable quarterly, and a variable commitment fee
on any unused balances.

The obligations of the Company under the facility have been guaranteed by a
substantial majority of the Company's subsidiaries and are secured by a pledge
of the Company's shares in such subsidiaries and certain indirect subsidiaries.
The facility contains certain financial covenants and certain restrictions on,
among other things, the Company's ability to  incur additional debt, make
certain investments, and sell assets or merge with another company.  The
facility also prohibits the payment of cash dividends on common stock without
the banks' consent.  The facility becomes due and payable upon a change of
control of the Company as defined in the facility agreement.

Including unused lines of credit in Europe, the Company had unused lines of
credit totaling approximately $94 million at September 30, 1997.

6.  DERIVATIVE FINANCIAL INSTRUMENTS:

The Company purchased a call option on 1.4 billion Spanish pesetas during 1997.
The option, which was sold in September, 1997, was designed to manage the
Company's exposure to fluctuation in the value of pesetas related to the minimum
remaining purchase price payable for Teleaction, S.A., and therefore the option
had been designated as a hedge.  Losses related to the option were deferred,
pursuant to hedge accounting, and will be recognized as an adjustment to the
purchase price obligation.

During the third quarter of 1997 the Company also began entering into forward
contracts designed to manage the Company's exposure to fluctuations in the value
of the currencies of certain foreign countries in which the Company has
significant operations.  These contracts are marked to market with gains and
losses recognized in the Company's Statements of Income (Loss) as other income
(expense).
                                        
                                        
<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES



Item 2.  Management's Discussion and Analysis of Results of Operation and
         ________________________________________________________________
         Financial Condition.
         ____________________


OVERVIEW
_________

SITEL Corporation and subsidiaries (the "Company") are engaged primarily in
inbound, outbound, and interactive teleservicing activities, servicing the
insurance, financial services, telecommunication, media and entertainment,
technology, utilities, consumer, and automotive industries.  Operations are
primarily located in North America, Europe and the Asia Pacific region.

The following table sets forth certain financial data and the percentage of
total revenues of the Company for the periods indicated.  All amounts are in
thousands.
<TABLE>

                         Three Months Ended September 30,    Nine Months Ended September, 30,
                              1996(1)           1997           1996(1)           1997
                         _______________  ________________  ________________   ________________
<S>                      <C>              <C>               <C>                <C>
Revenues...............  $ 85,144 100.0%  $ 120,248 100.0%  $ 213,929   100%   $ 349,775 100.0%
 Operating expenses:
   Cost of services....    44,433  52.2%     67,913  56.5%    112,772  52.7%     191,376  54.7%
   Selling, general,                                                                    
   and administrative                                                                        
   expenses............    33,040  38.8%     49,471  41.1%     82,317  38.5%     133,013  38.0%
                                                                               
     Total operating                                                                  
     expenses..........    77,473  91.0%    117,384  97.6%    195,089  91.2%     324,389  92.7%
                                                                               
     Operating income..     7,671   9.0%      2,864   2.4%     18,840   8.8%      25,386   7.3%
                                                                               
 Interest income                   
 (expense),net.........      (130)(0.2)%    (1,512) (1.2)%        (4)   0.0%     (3,199) (0.9)%
 Transaction related
 expense...............    (6,322)(7.4)%        --    0.0%    (6,988) (3.3)%          -    0.0%
 Other income (expense)       (19)  0.0%       123    0.0%       (19)   0.0%         62    0.0%
                                                                               
 Income before taxes and                                                                        
 minority interest.....     1,200   1.4%     1,475    1.2%     11,829   5.5%     22,249    6.4%
                                                                               
 Income tax expense....     2,514   3.0%       739    0.6%      6,996   3.3%      8,377    2.4%
                                                                               
 Minority interest.....        23   0.0%        10    0.0%         41   0.0%         86    0.0%
                                                                               
 Net income (loss).....  $ (1,337)(1.6)%  $    726    0.6%  $   4,792   2.2%   $ 13,786    3.9%
                                                                               
                                        
(1)  Includes non-recurring operating expenses related to the merger with Mitre
plc and the acquisition of National Action Financial Services, Inc. (NAFS).
Excluding those one-time operating expenses, and the transaction related
expenses, operating income, and net income were $8.2 million and $5.4 million
for the three months ended September 30, 1996 and $21.0 million and $13.4
million for the nine months ended September 30, 1996, respectively.
</TABLE>
<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES



THREE MONTHS ENDED SEPTEMBER 30, 1997 VS. THREE MONTHS ENDED SEPTEMBER 30, 1996
_______________________________________________________________________________


REVENUES:
________

Revenues increased $35.1 million, or 41.2%, to $120.2 million in the three
months ended September 30, 1997 from $85.1 million in the three months ended
September 30, 1996.  Of this increase, $8.9 million was attributable to services
initiated for new clients, $12.9 million was attributable to increased revenues
from existing clients and $13.3 million was attributable to increased revenues
from  businesses acquired under the purchase method of accounting.  The increase
in revenues from existing clients was primarily the result of higher calling
volumes rather than higher rates.

COST OF SERVICES:
_________________

Cost of services increased $23.5 million, or 52.8%, to $67.9 million in the
three months ended September 30, 1997 from $44.4 million in the three months
ended September 30, 1996.  As a percentage of revenues, cost of services
increased to 56.5% in the third quarter of 1997 from 52.2% in the third quarter
of 1996.  This increase was primarily attributable to start up operations in the
Asia Pacific region and certain interruptions, losses and delays of customer
programs in Europe and North America.  Cost of services represents primarily
labor and telephone expenses directly related to teleservicing activities.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
____________________________________________


Selling, general and administrative expenses increased $16.4 million, or 49.7%,
to $49.5 million in the three months ended September 30, 1997 from $33.0 million
in the three months ended September 30, 1996.  This increase was primarily a
result of the Company's continued growth both internally and through
acquisition. As a percentage of revenues, selling, general and administrative
expenses increased to 41.1% in the third quarter of 1997 from 38.8% in the third
quarter of 1996.  Excluding certain non-recurring operating expenses incurred in
1996 related to an acquisition, these expenses increased in the 1997 period from
38.1% of revenues in the 1996 period.  This increase was primarily due to costs
associated with start up operations in the Asia Pacific region and North America
and the impact of the items noted earlier on revenues associated with certain
customer programs.  Selling, general and administrative expenses represent
expenses incurred to directly support and manage the operations including costs
of management, administration, facilities expenses, depreciation and
maintenance, amortization, sales and marketing activities, and client support
services.

OPERATING INCOME:
________________

Operating income decreased $5.3 million, or 65.3%, to $2.9 million in the three
months ended September 30, 1997 from $8.2 million, excluding the non-recurring
items noted earlier, in the three months ended September 30, 1996.  As a
percentage of revenues, operating income decreased to 2.4% in the third quarter
of 1997 from 9.7% in the third quarter of 1996 excluding the non-recurring
expenses in 1996 described above.  This decrease was primarily due to costs
associated with start up operations in the Asia Pacific region and North America
and the impact of the items noted earlier on revenues associated with certain
customer programs.

INTEREST INCOME (EXPENSE), NET:
______________________________

Interest income (expense), net, increased to $1.5 million of interest expense in
the three months ended September 30, 1997 from $0.1 million of interest expense
in the three months ended September 30, 1996.  This increase was primarily due
to increased borrowings utilized to support the Company's growth, including
acquisitions.
<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES



INCOME TAX EXPENSE:
__________________

Income tax expense decreased to $0.7 million in the three months ended September
30, 1997 from $2.5 million in the three months ended September  30, 1996.  This
decrease was primarily attributable to the decrease in operating income noted
earlier.  The income tax expense as a percent of income before income taxes and
minority interest decreased to 50% in the three months ended September 30, 1997
from 210% in the three months ended September 30, 1996 primarily due to non-
deductible transaction related expenses in 1996.

NET INCOME:
__________

For the reasons discussed above, net income decreased $4.6 million, or 86.4%, to
$0.7 million in the three months ended September 30, 1997 from $5.4 million,
excluding the non-recurring expenses, in the three months ended September 30,
1996.

NINE MONTHS ENDED SEPTEMBER 30 1997 VS. NINE MONTHS ENDED SEPTEMBER 30, 1996
____________________________________________________________________________
REVENUES:
_________

Revenues increased $135.8 million, or 63.5%, to $349.8 million in the nine
months ended September 30, 1997 from $213.9 million in the nine months ended
September 30, 1996.  Of this increase, $24.7 million was attributable to
services initiated for new clients, $77.1 million was attributable to increased
revenues from existing clients and 34.0 million was attributable to revenues
from  businesses acquired after the start of 1996 under the purchase method of
accounting.  The increase in revenues from existing clients was primarily the
result of higher calling volumes rather than higher rates.

COST OF SERVICES:
________________

Cost of services increased $78.6 million, or 69.7%, to $191.4 million in the
nine months ended September 30, 1997 from $112.8 million in the nine months
ended September 30, 1996.  As a percentage of revenues, cost of services
increased to 54.7% in the first nine months of 1997 from 52.7% in the first nine
months of 1996.  This increase was primarily due to the start up operations in
the Asia Pacific region and the impact of certain interruptions, losses and
delays of customer programs in Europe and North America, primarily in the third
quarter of 1997.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
_____________________________________________

Selling, general and administrative expenses increased $50.7 million, or 61.6%,
to $133.0 million in the nine months ended September 30, 1997 from $82.3 million
in the nine months ended September 30, 1996.  This increase was primarily a
result of the Company's continued growth both internally and through
acquisition. As a percentage of revenues, selling, general and administrative
expenses decreased to 38.0% in the first nine months of 1997 from 38.5% in the
first nine months of 1996.  Excluding certain non-recurring operating expenses
incurred in 1996 related to an acquisition, these expenses increased slightly as
a percentage of revenue in the 1997 period from 37.5% of revenues in the 1996
period.

<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES



OPERATING INCOME:
________________

Operating income increased $4.4 million, or 20.8%, to $25.4 million in the nine
months ended September 30, 1997 from $21.0 million, excluding the non-recurring
items noted earlier, in the nine months ended September 30, 1996.  The increase
was primarily attributable to the increase in revenues noted earlier, partially
offset by the increased expenses attributable to those revenues.  As a
percentage of revenues, operating income decreased to 7.3% in the first nine
months of 1997 from 9.8% in the first nine months of 1996 excluding the non-
recurring expenses in 1996 described earlier.  This decrease was primarily due
to costs associated with start up operations in the Asia Pacific region and
North America and the impact of certain interruptions, losses and delays of
customer programs in Europe and North America, primarily in the third quarter of
1997.

INTEREST INCOME (EXPENSE), NET:
______________________________

Interest income (expense), net, increased to $3.2 million of interest expense in
the nine months ended September 30, 1997 from $0.01 million of interest expense
in the nine months ended September 30, 1996. This increase was primarily due to
increased borrowings utilized to support the Company's growth, including
acquisitions.

INCOME TAX EXPENSE:
__________________

Income tax expense increased to $8.4 million in the nine  months ended September
30, 1997 from $7.0 million in the nine months ended September 30, 1996.  This
increase was primarily attributable to the increase in operating income noted
earlier.  The income tax expense as a percentage of income before taxes and
minority interest decreased to 37.7% in the nine month period ended September
30, 1997 from 59.1% in the nine month period ended September 30, 1996 primarily
due to non-deductible transaction related expenses in 1996.

NET INCOME:
___________

Net income increased $0.4 million, or 2.7%, to $13.8 million in the nine months
ended September 30, 1997 from $13.4 million, excluding the non-recurring
expenses noted earlier, in the nine months ended September 30, 1996. The
increase was primarily due to the increase in revenues in the first nine months
of 1997 compared to the first nine months of 1996, offset by increased operating
expenses, interest expense and income tax expense.

LIQUIDITY AND CAPITAL RESOURCES:
________________________________

Cash provided by operating activities was approximately $6.4 million during the
first nine months of 1997.  This was primarily the result of an increase in net
income, non cash charges and increases in other liabilities offset primarily by
an increase in accounts receivable.  The Company anticipates that accounts
receivable will continue to grow, using working capital, as the Company
continues to grow.  Cash used by investing activities in the first nine months
of 1997 of approximately $97.7 million was primarily related to capital
expenditures and acquisitions of  businesses.  Cash provided by financing
activities for the first nine months of 1997 of approximately $91.7 million
primarily related to borrowings on the Company's available lines of credit.

<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES



In July, 1997, the Company reached agreement with a syndicate of commercial
banks for a $150 million revolving credit facility.  The commitment of the banks
under this facility expires in July, 2002.  The obligations of the Company under
the facility have been guaranteed by a substantial majority of the Company's
subsidiaries and are secured by a pledge of the Company's shares in such
subsidiaries and certain indirect subsidiaries.  The facility contains certain
financial covenants and certain restrictions on, among other things, the
Company's ability to incur additional debt, make certain investments, and sell
assets or merge with another company.  The facility also prohibits the payment
of cash dividends on common stock without the banks' consent.  The facility
becomes due and payable upon a change of control of the Company as defined in
the facility agreement.  Including unused lines of credit in Europe, the Company
had unused lines of credit totaling approximately $94 million at September 30,
1997.

The Company believes that funds generated from operations, existing cash, and
existing lines of credit will be sufficient to finance its current operations,
planned capital expenditure requirements and internal growth.   Future
acquisitions, if any, may require additional debt or equity financing.

QUARTERLY RESULTS AND SEASONALITY:
_________________________________

The Company has experienced and expects to continue to experience quarterly
variations in its results of operations principally due to the timing of
clients' teleservicing campaigns and the commencement of new contracts, revenue
mix, and the timing of additional selling, general and administrative expenses
to support new business.  While the effects of seasonality on the Company's
business often are offset by the addition of new clients or new programs for
existing clients, the Company's business tends to be slower in the third quarter
due to summer holidays in Europe and, to a lesser degree, in the first quarter
due to the changeover of client marketing strategies which often occurs at the
beginning of the year

EFFECTS OF INFLATION:
_____________________

Inflation has not had a significant effect on the Company's operations.
However, there can be no assurance that inflation will not have a material
effect on the Company's operations in the future.

FORWARD-LOOKING STATEMENTS:
___________________________

This report on Form 10-Q contains forward-looking statements.  Additionaly, from
time to time, in written reports and oral statements, the Company discusses its
expectations regarding future performance.  These forward-looking statements are
based on currently available competitive, financial and economic data and the
Company's operating plans.  These statements are also inherently subject to
risks and uncertainties, including without limitation the risks described in the
Company's periodic reports and other filings with the Securities and Exchange
Commission.  Because of the risks and uncertainties, events and results could
turn out to be significantly different from what the Company had expected.
<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES
                                        

PART II - OTHER INFORMATION

Item 2.  Changes in Securities.
         ______________________
     
     (b)  In July 1997, the registrant entered into a Credit Agreement which
          restricts the payment of cash dividends on Common Stock.  See footnote
          5 to the financial statements contained herein.

Item 5.  Other Information.
         __________________

          In October, 1997, the Company re-priced all employee stock options
          which had been granted to employees below senior management on or 
          after July 1, 1996 at an exercise price above $12.50 per share.  The
          new exercise price was set at the average closing price for the 90 day
          period leading up to the date the re-pricing was approved.  This
          new exercise price was $12.50 per share which was greater than
          the market price of the Company's stock at the date of the re-pricing.
          The Company also made certain changes to the accelerated vesting
          provisions of it's award program under the 1995 Employee Stock Option
          Plan.


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

     (a)    EXHIBITS:
     
     
            10.11     Credit Agreement with Bankers Trust Company as Agent
                                                                
            27        Financial Data Schedule                   
     

          (b)  REPORTS ON FORM 8-K.  The Company filed the following reports  on
          Form 8-K during the quarter for which this report is filed.

          1)   The Company filed a Form 8-K on August 1, 1997, reporting under 
               Item 9, the issuance of shares in connection with the acquisition
               of Svanberg & Co. Intressenter AB.
          
          2)   The Company filed a Form 8-K on September 15, 1997 reporting 
               under Item 9, the issuance of shares in connection with the 
               acquisition of Telephone Marketing Services (Ireland), Ltd.
<PAGE>
                                   SIGNATURES


      Pursuant  to the requirements 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.


Date:  November 14, 1997           SITEL Corporation


                                By: /s/ Michael P. May
                                    _______________________________
                                    Michael P. May
                                    Chief Executive Officer


                                By: /s/ Barry S. Major
                                    _______________________________
                                    Barry S. Major
                                    Executive Vice-President and 
                                    Chief Financial Officer
                                   (Principal Financial Officer)







<PAGE>
                       SITEL CORPORATION AND SUBSIDIARIES




     Exhibits Index:                                                     Page
     _______________                                                     ____


       10.11     Credit Agreement with Bankers Trust company as Agent      15
                                                             
       27        Financial Data Schedule                     

          ______________________