EXLS ExlService Holdings Inc

false--12-31FY201900012979890.00502400000000.0010.001100000000100000000378505443848062634222476341852130.0133333P6YP8YP15YP10YP5YP10YP3YP3YP5YP1YP3Y13130001500000.0010.001150000001500000000P8YP8YP5YP5YP3YP3YP3YP3YP2YP3YP3Y15.0021.0121.0028.000.33330.33333628068429541300 0001297989 2019-01-01 2019-12-31 0001297989 2020-02-25 0001297989 2019-06-30 0001297989 2018-12-31 0001297989 2019-12-31 0001297989 2017-01-01 2017-12-31 0001297989 2018-01-01 2018-12-31 0001297989 us-gaap:CommonStockMember 2018-01-01 2018-12-31 0001297989 us-gaap:CommonStockMember 2017-01-01 2017-12-31 0001297989 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-12-31 0001297989 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-12-31 0001297989 us-gaap:NoncontrollingInterestMember 2018-01-01 0001297989 us-gaap:RetainedEarningsMember 2017-12-31 0001297989 us-gaap:TreasuryStockMember 2017-01-01 2017-12-31 0001297989 us-gaap:TreasuryStockMember 2018-01-01 2018-12-31 0001297989 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001297989 us-gaap:NoncontrollingInterestMember 2017-12-31 0001297989 us-gaap:RetainedEarningsMember 2017-01-01 2017-12-31 0001297989 2017-12-31 0001297989 us-gaap:CommonStockMember 2019-01-01 2019-12-31 0001297989 us-gaap:CommonStockMember 2016-12-31 0001297989 us-gaap:TreasuryStockMember 2018-12-31 0001297989 us-gaap:CommonStockMember 2017-12-31 0001297989 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001297989 us-gaap:CommonStockMember 2017-01-01 0001297989 us-gaap:TreasuryStockMember 2018-01-01 0001297989 us-gaap:AdditionalPaidInCapitalMember 2017-01-01 2017-12-31 0001297989 us-gaap:NoncontrollingInterestMember 2018-12-31 0001297989 us-gaap:RetainedEarningsMember 2017-01-01 0001297989 us-gaap:NoncontrollingInterestMember 2017-01-01 0001297989 us-gaap:RetainedEarningsMember 2018-01-01 0001297989 us-gaap:NoncontrollingInterestMember 2016-12-31 0001297989 us-gaap:RetainedEarningsMember 2019-01-01 2019-12-31 0001297989 us-gaap:RetainedEarningsMember 2018-01-01 2018-12-31 0001297989 2017-01-01 0001297989 us-gaap:CommonStockMember 2018-01-01 0001297989 us-gaap:TreasuryStockMember 2019-01-01 2019-12-31 0001297989 us-gaap:TreasuryStockMember 2017-12-31 0001297989 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-12-31 0001297989 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-12-31 0001297989 us-gaap:TreasuryStockMember 2019-12-31 0001297989 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-12-31 0001297989 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 0001297989 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-01-01 0001297989 us-gaap:CommonStockMember 2018-12-31 0001297989 us-gaap:TreasuryStockMember 2016-12-31 0001297989 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0001297989 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-01-01 2017-12-31 0001297989 us-gaap:TreasuryStockMember 2017-01-01 0001297989 2018-01-01 0001297989 us-gaap:NoncontrollingInterestMember 2017-01-01 2017-12-31 0001297989 us-gaap:AdditionalPaidInCapitalMember 2017-01-01 0001297989 us-gaap:NoncontrollingInterestMember 2019-12-31 0001297989 us-gaap:RetainedEarningsMember 2018-12-31 0001297989 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-12-31 0001297989 2016-12-31 0001297989 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 0001297989 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001297989 us-gaap:RetainedEarningsMember 2019-12-31 0001297989 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001297989 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-12-31 0001297989 us-gaap:CommonStockMember 2019-12-31 0001297989 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001297989 us-gaap:RetainedEarningsMember 2016-12-31 0001297989 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001297989 exls:AmendmentAndRestatementOfThe2006OmnibusAwardPlan2015PlanMember 2019-12-31 0001297989 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001297989 srt:MaximumMember exls:MarketConditionBasedPerformanceRestrictedStockUnitsMember exls:AmendmentAndRestatementOfThe2006OmnibusAwardPlan2015PlanMember 2019-01-01 2019-12-31 0001297989 exls:MarketConditionBasedPerformanceRestrictedStockUnitsMember exls:AmendmentAndRestatementOfThe2006OmnibusAwardPlan2015PlanMember 2019-12-31 0001297989 srt:MaximumMember 2019-01-01 2019-12-31 0001297989 exls:RevenueBasedPerformanceRestrictedStockUnitsMember exls:AmendmentAndRestatementOfThe2006OmnibusAwardPlan2015PlanMember 2019-12-31 0001297989 srt:MinimumMember 2019-01-01 2019-12-31 0001297989 srt:MaximumMember us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2019-01-01 2019-12-31 0001297989 srt:MinimumMember us-gaap:VehiclesMember 2019-01-01 2019-12-31 0001297989 srt:MaximumMember us-gaap:LeaseholdImprovementsMember 2019-01-01 2019-12-31 0001297989 srt:MaximumMember us-gaap:FurnitureAndFixturesMember 2019-01-01 2019-12-31 0001297989 srt:MaximumMember us-gaap:TechnologyEquipmentMember 2019-01-01 2019-12-31 0001297989 srt:MinimumMember us-gaap:LeaseholdImprovementsMember 2019-01-01 2019-12-31 0001297989 us-gaap:BuildingMember 2019-01-01 2019-12-31 0001297989 srt:MinimumMember us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2019-01-01 2019-12-31 0001297989 srt:MinimumMember us-gaap:TechnologyEquipmentMember 2019-01-01 2019-12-31 0001297989 srt:MaximumMember us-gaap:VehiclesMember 2019-01-01 2019-12-31 0001297989 srt:MinimumMember us-gaap:FurnitureAndFixturesMember 2019-01-01 2019-12-31 0001297989 exls:MarketConditionBasedPerformanceRestrictedStockUnitsMember exls:AmendmentAndRestatementOfThe2006OmnibusAwardPlan2015PlanMember 2019-01-01 2019-12-31 0001297989 exls:RevenueBasedPerformanceRestrictedStockUnitsMember exls:AmendmentAndRestatementOfThe2006OmnibusAwardPlan2015PlanMember 2019-01-01 2019-12-31 0001297989 srt:MaximumMember exls:LeaseholdBenefitsMember 2019-01-01 2019-12-31 0001297989 srt:MaximumMember us-gaap:CustomerRelationshipsMember 2019-01-01 2019-12-31 0001297989 srt:MinimumMember us-gaap:NoncompeteAgreementsMember 2019-01-01 2019-12-31 0001297989 srt:MinimumMember exls:LeaseholdBenefitsMember 2019-01-01 2019-12-31 0001297989 srt:MinimumMember us-gaap:CustomerRelationshipsMember 2019-01-01 2019-12-31 0001297989 srt:MaximumMember us-gaap:DevelopedTechnologyRightsMember 2019-01-01 2019-12-31 0001297989 srt:MinimumMember us-gaap:TrademarksAndTradeNamesMember 2019-01-01 2019-12-31 0001297989 srt:MaximumMember us-gaap:NoncompeteAgreementsMember 2019-01-01 2019-12-31 0001297989 srt:MinimumMember us-gaap:DevelopedTechnologyRightsMember 2019-01-01 2019-12-31 0001297989 srt:MaximumMember us-gaap:TrademarksAndTradeNamesMember 2019-01-01 2019-12-31 0001297989 exls:OtherOperationsManagementMember 2018-01-01 2018-12-31 0001297989 exls:AnalyticsMember 2018-01-01 2018-12-31 0001297989 exls:InsuranceMember 2018-01-01 2018-12-31 0001297989 exls:FinanceandAccountingMember 2018-01-01 2018-12-31 0001297989 us-gaap:HealthCareMember 2018-01-01 2018-12-31 0001297989 exls:TravelTransportationandLogisticsMember 2018-01-01 2018-12-31 0001297989 country:IN 2019-12-31 0001297989 country:US 2019-12-31 0001297989 country:PH 2018-12-31 0001297989 country:US 2018-12-31 0001297989 country:PH 2019-12-31 0001297989 exls:RestOfWorldMember 2018-12-31 0001297989 country:IN 2018-12-31 0001297989 exls:RestOfWorldMember 2019-12-31 0001297989 exls:TravelTransportationandLogisticsMember 2017-01-01 2017-12-31 0001297989 exls:AnalyticsMember 2017-01-01 2017-12-31 0001297989 exls:InsuranceMember 2017-01-01 2017-12-31 0001297989 exls:FinanceandAccountingMember 2017-01-01 2017-12-31 0001297989 exls:OtherOperationsManagementMember 2017-01-01 2017-12-31 0001297989 us-gaap:HealthCareMember 2017-01-01 2017-12-31 0001297989 exls:AnalyticsServicesMember 2017-01-01 2017-12-31 0001297989 exls:AnalyticsServicesMember 2019-01-01 2019-12-31 0001297989 exls:BPMandRelatedServicesMember 2018-01-01 2018-12-31 0001297989 exls:BPMandRelatedServicesMember 2019-01-01 2019-12-31 0001297989 exls:BPMandRelatedServicesMember 2017-01-01 2017-12-31 0001297989 exls:AnalyticsServicesMember 2018-01-01 2018-12-31 0001297989 exls:TravelTransportationandLogisticsMember 2019-01-01 2019-12-31 0001297989 exls:InsuranceMember 2019-01-01 2019-12-31 0001297989 exls:FinanceandAccountingMember 2019-01-01 2019-12-31 0001297989 exls:OtherOperationsManagementMember 2019-01-01 2019-12-31 0001297989 us-gaap:HealthCareMember 2019-01-01 2019-12-31 0001297989 exls:AnalyticsMember 2019-01-01 2019-12-31 0001297989 country:GB 2017-01-01 2017-12-31 0001297989 us-gaap:NonUsMember 2017-01-01 2017-12-31 0001297989 us-gaap:NonUsMember 2018-01-01 2018-12-31 0001297989 country:GB 2018-01-01 2018-12-31 0001297989 us-gaap:NonUsMember 2019-01-01 2019-12-31 0001297989 country:US 2017-01-01 2017-12-31 0001297989 country:US 2019-01-01 2019-12-31 0001297989 exls:RestOfWorldMember 2018-01-01 2018-12-31 0001297989 country:GB 2019-01-01 2019-12-31 0001297989 exls:RestOfWorldMember 2019-01-01 2019-12-31 0001297989 exls:RestOfWorldMember 2017-01-01 2017-12-31 0001297989 country:US 2018-01-01 2018-12-31 0001297989 2019-07-01 2019-09-30 0001297989 2018-10-01 2018-12-31 0001297989 2018-01-01 2018-03-31 0001297989 2019-10-01 2019-12-31 0001297989 2018-04-01 2018-06-30 0001297989 2019-01-01 2019-03-31 0001297989 2019-04-01 2019-06-30 0001297989 2018-07-01 2018-09-30 0001297989 exls:ContractFulfillmentCostsMember 2018-12-31 0001297989 exls:ContractAcquisitionCostsMember 2018-01-01 2018-12-31 0001297989 exls:ContractAcquisitionCostsMember 2018-12-31 0001297989 exls:ContractAcquisitionCostsMember 2019-01-01 2019-12-31 0001297989 exls:ContractFulfillmentCostsMember 2018-01-01 2018-12-31 0001297989 exls:ContractFulfillmentCostsMember 2019-01-01 2019-12-31 0001297989 exls:ContractAcquisitionCostsMember 2019-12-31 0001297989 exls:ContractFulfillmentCostsMember 2017-12-31 0001297989 exls:ContractAcquisitionCostsMember 2017-12-31 0001297989 exls:ContractFulfillmentCostsMember 2019-12-31 0001297989 exls:DepreciationAndAmortizationMember 2017-01-01 2017-12-31 0001297989 exls:DepreciationAndAmortizationMember 2019-01-01 2019-12-31 0001297989 exls:DepreciationAndAmortizationMember 2018-01-01 2018-12-31 0001297989 us-gaap:TechnologyEquipmentMember 2019-12-31 0001297989 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2018-12-31 0001297989 us-gaap:VehiclesMember 2018-12-31 0001297989 us-gaap:LeaseholdImprovementsMember 2018-12-31 0001297989 us-gaap:TechnologyEquipmentMember 2018-12-31 0001297989 us-gaap:LandMember 2018-12-31 0001297989 us-gaap:FurnitureAndFixturesMember 2018-12-31 0001297989 us-gaap:FurnitureAndFixturesMember 2019-12-31 0001297989 us-gaap:LandMember 2019-12-31 0001297989 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2019-12-31 0001297989 us-gaap:VehiclesMember 2019-12-31 0001297989 us-gaap:ConstructionInProgressMember 2018-12-31 0001297989 us-gaap:BuildingMember 2018-12-31 0001297989 us-gaap:ConstructionInProgressMember 2019-12-31 0001297989 us-gaap:LeaseholdImprovementsMember 2019-12-31 0001297989 us-gaap:BuildingMember 2019-12-31 0001297989 exls:SCIOMember 2018-07-01 0001297989 us-gaap:CustomerRelationshipsMember 2018-10-01 2018-12-31 0001297989 us-gaap:TrademarksAndTradeNamesMember 2018-10-01 2018-12-31 0001297989 exls:SCIOMember 2019-12-31 0001297989 srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember 2019-10-01 2019-12-31 0001297989 exls:SCIOMember us-gaap:DevelopedTechnologyRightsMember 2018-07-01 2018-07-01 0001297989 srt:MinimumMember us-gaap:MeasurementInputDiscountRateMember 2019-10-01 2019-12-31 0001297989 exls:HealthIntegratedInc.Member 2018-12-31 0001297989 exls:SCIOMember us-gaap:CustomerRelationshipsMember 2018-07-01 2018-07-01 0001297989 srt:MinimumMember exls:SCIOMember 2018-07-01 2018-07-01 0001297989 us-gaap:MeasurementInputLongTermRevenueGrowthRateMember 2019-10-01 2019-12-31 0001297989 exls:SCIOMember us-gaap:RevolvingCreditFacilityMember 2018-07-01 2018-07-01 0001297989 exls:SCIOMember us-gaap:TrademarksAndTradeNamesMember 2018-07-01 2018-07-01 0001297989 us-gaap:RestrictedStockMember exls:SCIOMember 2018-07-01 2018-07-01 0001297989 us-gaap:HealthCareMember 2018-10-01 2018-12-31 0001297989 us-gaap:TrademarksAndTradeNamesMember 2019-01-01 2019-12-31 0001297989 us-gaap:DevelopedTechnologyRightsMember 2019-01-01 2019-12-31 0001297989 us-gaap:CustomerRelationshipsMember 2019-01-01 2019-12-31 0001297989 us-gaap:NoncompeteAgreementsMember 2018-12-31 0001297989 us-gaap:TrademarksAndTradeNamesMember 2018-12-31 0001297989 us-gaap:DevelopedTechnologyRightsMember 2018-12-31 0001297989 us-gaap:CustomerRelationshipsMember 2018-12-31 0001297989 exls:LeaseholdBenefitsMember 2018-12-31 0001297989 us-gaap:TrademarksAndTradeNamesMember 2018-12-31 0001297989 us-gaap:CustomerRelationshipsMember 2019-12-31 0001297989 us-gaap:TrademarksAndTradeNamesMember 2019-12-31 0001297989 us-gaap:TrademarksAndTradeNamesMember 2019-12-31 0001297989 us-gaap:DevelopedTechnologyRightsMember 2019-12-31 0001297989 exls:OtherOperationsManagementMember 2019-12-31 0001297989 exls:InsuranceMember 2019-12-31 0001297989 exls:OtherOperationsManagementMember 2017-12-31 0001297989 exls:AnalyticsMember 2019-12-31 0001297989 exls:FinanceandAccountingMember 2018-12-31 0001297989 us-gaap:HealthCareMember 2017-12-31 0001297989 exls:FinanceandAccountingMember 2019-12-31 0001297989 exls:AnalyticsMember 2017-12-31 0001297989 exls:TravelTransportationandLogisticsMember 2018-12-31 0001297989 exls:InsuranceMember 2018-12-31 0001297989 exls:FinanceandAccountingMember 2017-12-31 0001297989 exls:TravelTransportationandLogisticsMember 2019-12-31 0001297989 exls:AnalyticsMember 2018-12-31 0001297989 us-gaap:HealthCareMember 2019-12-31 0001297989 exls:InsuranceMember 2017-12-31 0001297989 exls:OtherOperationsManagementMember 2018-12-31 0001297989 exls:TravelTransportationandLogisticsMember 2017-12-31 0001297989 us-gaap:HealthCareMember 2018-12-31 0001297989 exls:SCIOMember us-gaap:DevelopedTechnologyRightsMember 2018-07-01 0001297989 exls:SCIOMember us-gaap:CustomerRelationshipsMember 2018-07-01 0001297989 exls:SCIOMember us-gaap:TrademarksAndTradeNamesMember 2018-07-01 0001297989 us-gaap:MeasurementInputDiscountRateMember 2019-10-01 2019-12-31 0001297989 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0001297989 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0001297989 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0001297989 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0001297989 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0001297989 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-31 0001297989 us-gaap:FairValueInputsLevel3Member 2018-12-31 0001297989 us-gaap:FairValueInputsLevel3Member 2019-12-31 0001297989 us-gaap:FairValueInputsLevel2Member 2019-12-31 0001297989 us-gaap:FairValueInputsLevel1Member 2019-12-31 0001297989 us-gaap:FairValueInputsLevel1Member 2018-12-31 0001297989 us-gaap:FairValueInputsLevel2Member 2018-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:ForwardContractsMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:ForwardContractsMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-01-01 2018-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-01-01 2017-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2017-01-01 2017-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-12-31 0001297989 us-gaap:ForeignExchangeContractMember 2018-01-01 2018-12-31 0001297989 us-gaap:ForeignExchangeContractMember 2019-01-01 2019-12-31 0001297989 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001297989 exls:AccruedExpensesAndOtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001297989 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-12-31 0001297989 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001297989 exls:AccruedExpensesAndOtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001297989 us-gaap:OtherAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001297989 exls:AccruedExpensesAndOtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-12-31 0001297989 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0001297989 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001297989 us-gaap:OtherAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0001297989 exls:AccruedExpensesAndOtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-12-31 0001297989 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2017-01-01 2017-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:FairValueHedgingMember us-gaap:NondesignatedMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:FairValueHedgingMember us-gaap:NondesignatedMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2017-01-01 2017-12-31 0001297989 us-gaap:ForeignExchangeContractMember us-gaap:FairValueHedgingMember us-gaap:NondesignatedMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-12-31 0001297989 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember exls:CreditAgreementMember us-gaap:PrimeRateMember 2017-11-21 2017-11-21 0001297989 us-gaap:RevolvingCreditFacilityMember exls:CreditAgreementMember 2017-11-21 0001297989 exls:A3.50ConvertibleSeniorNotesdueOctober12024Member us-gaap:ConvertibleNotesPayableMember 2018-10-01 0001297989 exls:A3.50ConvertibleSeniorNotesdueOctober12024Member us-gaap:ConvertibleNotesPayableMember 2019-12-31 0001297989 exls:A3.50ConvertibleSeniorNotesdueOctober12024Member us-gaap:ConvertibleNotesPayableMember 2019-01-01 2019-12-31 0001297989 us-gaap:RevolvingCreditFacilityMember 2018-12-31 0001297989 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember exls:CreditAgreementMember 2017-11-21 2017-11-21 0001297989 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember exls:CreditAgreementMember 2017-11-21 2017-11-21 0001297989 us-gaap:RevolvingCreditFacilityMember 2019-12-31 0001297989 us-gaap:RevolvingCreditFacilityMember exls:CreditAgreementMember 2018-01-01 2018-12-31 0001297989 us-gaap:RevolvingCreditFacilityMember exls:CreditAgreementMember 2019-01-01 2019-12-31 0001297989 exls:A3.50ConvertibleSeniorNotesdueOctober12024Member us-gaap:ConvertibleNotesPayableMember 2018-01-01 2018-12-31 0001297989 us-gaap:NotesPayableOtherPayablesMember 2018-12-31 0001297989 exls:A3.50ConvertibleSeniorNotesdueOctober12024Member us-gaap:ConvertibleNotesPayableMember 2018-10-01 2018-10-01 0001297989 us-gaap:NotesPayableOtherPayablesMember 2019-12-31 0001297989 us-gaap:RevolvingCreditFacilityMember exls:CreditAgreementMember 2018-07-02 0001297989 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember exls:CreditAgreementMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-11-21 2017-11-21 0001297989 exls:A3.50ConvertibleSeniorNotesdueOctober12024Member us-gaap:ConvertibleNotesPayableMember 2018-12-31 0001297989 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember exls:CreditAgreementMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-11-21 2017-11-21 0001297989 us-gaap:RevolvingCreditFacilityMember 2018-10-01 2018-10-01 0001297989 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember exls:CreditAgreementMember us-gaap:PrimeRateMember 2017-11-21 2017-11-21 0001297989 exls:TwoThousandSeventeenRepurchaseProgramMember 2017-02-28 0001297989 exls:TwoThousandFourteenRepurchaseProgramMember 2018-01-01 2018-12-31 0001297989 srt:MinimumMember exls:TwoThousandFourteenRepurchaseProgramMember 2014-12-30 0001297989 exls:TwoThousandFourteenRepurchaseProgramMember 2014-12-30 0001297989 exls:TwoThousandNineteenRepurchaseProgramMember 2019-12-16 0001297989 exls:TwoThousandFourteenandTwoThousandSeventeenRepurchaseProgramMember 2019-01-01 2019-12-31 0001297989 srt:MaximumMember exls:TwoThousandSeventeenRepurchaseProgramMember 2017-02-28 0001297989 exls:FirstFiveYearsMember 2019-01-01 2019-12-31 0001297989 exls:FiveToTenYearsMember 2019-01-01 2019-12-31 0001297989 exls:ExpirationDateTwoThousandAndThirtyTwoMember 2018-12-31 0001297989 exls:ExpirationDateTwoThousandAndThirtyTwoMember 2019-12-31 0001297989 exls:RangeOneMember 2019-12-31 0001297989 exls:RangeTwoMember 2019-12-31 0001297989 exls:RestrictedStockandRestrictedStockUnitsMember 2017-01-01 2017-12-31 0001297989 exls:TwoThousandEighteenStockOptionsPlanMember us-gaap:SubsequentEventMember 2020-01-01 2020-02-27 0001297989 exls:PerformanceBasedStockAwardsMember 2019-12-31 0001297989 us-gaap:RestrictedStockUnitsRSUMember 2018-12-31 0001297989 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-12-31 0001297989 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-12-31 0001297989 exls:RestrictedStockandRestrictedStockUnitsMember 2018-01-01 2018-12-31 0001297989 exls:TwoThousandEighteenStockOptionsPlanMember 2019-12-31 0001297989 us-gaap:EmployeeStockOptionMember 2019-12-31 0001297989 us-gaap:RestrictedStockUnitsRSUMember 2019-12-31 0001297989 exls:RestrictedStockandRestrictedStockUnitsMember 2019-01-01 2019-12-31 0001297989 us-gaap:EmployeeStockOptionMember 2017-01-01 2017-12-31 0001297989 2015-06-19 2015-06-19 0001297989 exls:TwoThousandEighteenStockOptionsPlanMember 2018-06-15 0001297989 exls:PerformanceBasedStockAwardsMember 2019-01-01 2019-12-31 0001297989 exls:RestrictedStockandRestrictedStockUnitsMember 2019-12-31 0001297989 us-gaap:RestrictedStockMember 2019-12-31 0001297989 us-gaap:RestrictedStockMember 2019-01-01 2019-12-31 0001297989 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-12-31 0001297989 us-gaap:RestrictedStockMember 2018-12-31 0001297989 us-gaap:GeneralAndAdministrativeExpenseMember 2017-01-01 2017-12-31 0001297989 us-gaap:SellingAndMarketingExpenseMember 2017-01-01 2017-12-31 0001297989 us-gaap:CostOfSalesMember 2018-01-01 2018-12-31 0001297989 us-gaap:SellingAndMarketingExpenseMember 2019-01-01 2019-12-31 0001297989 us-gaap:CostOfSalesMember 2019-01-01 2019-12-31 0001297989 us-gaap:CostOfSalesMember 2017-01-01 2017-12-31 0001297989 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-12-31 0001297989 us-gaap:SellingAndMarketingExpenseMember 2018-01-01 2018-12-31 0001297989 us-gaap:GeneralAndAdministrativeExpenseMember 2018-01-01 2018-12-31 0001297989 exls:RevenueBasedPerformanceRestrictedStockUnitsMember 2018-12-31 0001297989 exls:MarketConditionBasedPerformanceRestrictedStockUnitsMember 2018-12-31 0001297989 exls:RevenueBasedPerformanceRestrictedStockUnitsMember 2019-01-01 2019-12-31 0001297989 exls:MarketConditionBasedPerformanceRestrictedStockUnitsMember 2019-12-31 0001297989 exls:MarketConditionBasedPerformanceRestrictedStockUnitsMember 2019-01-01 2019-12-31 0001297989 exls:RevenueBasedPerformanceRestrictedStockUnitsMember 2019-12-31 0001297989 us-gaap:EmployeeStockOptionMember 2018-12-31 0001297989 exls:MarketConditionBasedPerformanceRestrictedStockUnitsMember 2017-01-01 2017-12-31 0001297989 exls:MarketConditionBasedPerformanceRestrictedStockUnitsMember 2018-01-01 2018-12-31 0001297989 exls:RevenueBasedPerformanceRestrictedStockUnitsMember exls:AmendmentAndRestatementOfThe2006OmnibusAwardPlan2015PlanMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2017-01-01 2017-12-31 0001297989 exls:RevenueBasedPerformanceRestrictedStockUnitsMember exls:AmendmentAndRestatementOfThe2006OmnibusAwardPlan2015PlanMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2018-01-01 2018-12-31 0001297989 srt:MaximumMember exls:RevenueBasedPerformanceRestrictedStockUnitsMember 2018-01-01 2018-12-31 0001297989 exls:RangeOneMember 2019-01-01 2019-12-31 0001297989 exls:RangeTwoMember 2019-01-01 2019-12-31 0001297989 us-gaap:OtherRestructuringMember 2019-01-01 2019-12-31 0001297989 us-gaap:EmployeeSeveranceMember 2019-01-01 2019-12-31 0001297989 us-gaap:ContractTerminationMember 2019-01-01 2019-12-31 0001297989 us-gaap:OtherRestructuringMember 2018-12-31 0001297989 us-gaap:OtherRestructuringMember 2019-12-31 0001297989 us-gaap:EmployeeSeveranceMember 2019-12-31 0001297989 us-gaap:ContractTerminationMember 2019-12-31 0001297989 us-gaap:EmployeeSeveranceMember 2018-12-31 0001297989 us-gaap:ContractTerminationMember 2018-12-31 0001297989 srt:AffiliatedEntityMember exls:ConsultingServicesMember 2018-01-01 2018-12-31 0001297989 srt:AffiliatedEntityMember exls:ConsultingServicesMember 2017-01-01 2017-12-31 0001297989 srt:AffiliatedEntityMember exls:ConsultingServicesMember 2019-01-01 2019-12-31 0001297989 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member 2017-01-01 2017-12-31 0001297989 srt:ScenarioPreviouslyReportedMember 2017-01-01 2017-12-31 0001297989 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201618Member 2017-01-01 2017-12-31 0001297989 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201618Member 2017-01-01 2017-12-31 0001297989 us-gaap:AccountingStandardsUpdate201618Member 2017-01-01 2017-12-31 0001297989 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201618Member 2017-12-31 0001297989 us-gaap:AccountingStandardsUpdate201618Member 2016-12-31 0001297989 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201618Member 2016-12-31 0001297989 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201618Member 2017-12-31 0001297989 us-gaap:AccountingStandardsUpdate201618Member 2017-12-31 0001297989 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201618Member 2016-12-31 0001297989 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member us-gaap:HealthCareMember 2017-01-01 2017-12-31 0001297989 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member exls:FinanceandAccountingMember 2017-01-01 2017-12-31 0001297989 us-gaap:AccountingStandardsUpdate201707Member exls:TravelTransportationandLogisticsMember 2017-01-01 2017-12-31 0001297989 us-gaap:AccountingStandardsUpdate201707Member 2017-01-01 2017-12-31 0001297989 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member exls:FinanceandAccountingMember 2017-01-01 2017-12-31 0001297989 us-gaap:AccountingStandardsUpdate201707Member exls:FinanceandAccountingMember 2017-01-01 2017-12-31 0001297989 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member us-gaap:HealthCareMember 2017-01-01 2017-12-31 0001297989 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member exls:TravelTransportationandLogisticsMember 2017-01-01 2017-12-31 0001297989 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member exls:AnalyticsMember 2017-01-01 2017-12-31 0001297989 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member exls:TravelTransportationandLogisticsMember 2017-01-01 2017-12-31 0001297989 us-gaap:AccountingStandardsUpdate201707Member exls:AnalyticsMember 2017-01-01 2017-12-31 0001297989 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member 2017-01-01 2017-12-31 0001297989 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member exls:OtherOperationsManagementMember 2017-01-01 2017-12-31 0001297989 us-gaap:AccountingStandardsUpdate201707Member us-gaap:HealthCareMember 2017-01-01 2017-12-31 0001297989 us-gaap:AccountingStandardsUpdate201707Member exls:OtherOperationsManagementMember 2017-01-01 2017-12-31 0001297989 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member exls:AnalyticsMember 2017-01-01 2017-12-31 0001297989 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member exls:InsuranceMember 2017-01-01 2017-12-31 0001297989 srt:ScenarioPreviouslyReportedMember us-gaap:AccountingStandardsUpdate201707Member exls:InsuranceMember 2017-01-01 2017-12-31 0001297989 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member exls:OtherOperationsManagementMember 2017-01-01 2017-12-31 0001297989 us-gaap:AccountingStandardsUpdate201707Member exls:InsuranceMember 2017-01-01 2017-12-31 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure exls:operating_segment iso4217:EUR iso4217:GBP exls:ClassOfCommonStock

(212) 277-7100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(g) of the Act:

None

_______________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.   Yes  ý No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes  ¨    No  ý

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  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer		ý		Accelerated filer		☐
Non-accelerated filer		☐		Smaller reporting company		☐
Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ý

As of June 30, 2019, the aggregate market value of common stock held by non-affiliates was approximately $2,189,025,465.

As of February 25, 2020, there were 34,364,691 shares of the registrant’s common stock outstanding, par value $0.001 per share.

DOCUMENTS INCORPORATED BY REFERENCE

Part III incorporates information from certain portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the fiscal year end of December 31, 2019.

TABLE OF CONTENTS

ITEM 1.     Business

ExlService Holdings, Inc. (“EXL”, “we”, “us", "our" or the "Company"), incorporated in Delaware in 2002, is a leading operations management and analytics company that helps its clients build and grow sustainable businesses. By orchestrating our domain expertise, data, analytics and digital technology, we look deeper to design and manage agile, customer-centric operating models to improve global operations, drive profitability, enhance customer satisfaction, increase data-driven insights, and manage risk and compliance. We serve customers in multiple industries, including insurance, healthcare, banking and financial services, utilities, travel, transportation and logistics, media and retail, among others. Headquartered in New York, we have more than 31,700 professionals in locations throughout the United States, the United Kingdom, Europe, India, the Philippines, Colombia, Australia and South Africa.

We operate in the business process management (“BPM”) industry, and we provide operations management and analytics services. As described below, effective January 1, 2020, we realigned our operating and reportable segments, but the presentation in this Annual Report, including the discussion in the next two paragraphs, refers to the structure in place prior to such realignment.

Our eight operating segments are strategic business units that align our products and services with how we manage our business, approach our key markets and interact with our clients. Five of those operating segments provide BPM or “operations management” services, which we organize into industry-focused operating segments (Insurance, Healthcare, Travel, Transportation and Logistics, Banking and Financial Services, and Utilities) and one of the operating segments is a “capability” segment (Finance and Accounting) that provides services to clients in our industry-focused segments as well as clients across other industries. In each of these six operating segments we provide operations management services, which typically involve transfer to the Company of business operations of a client, after which we administer and manage those operations for our client on an ongoing basis. Our remaining two operating segments are Consulting, which provides industry-specific digital transformational services related to operations management services, and our Analytics operating segment, which provides services that focus on driving improved business outcomes for clients by generating data-driven insights across all parts of their business. Together, our operations management and analytics services support our customers’ digital transformation agendas, through our differentiated strategy and approach that we call Digital Intelligence. Digital Intelligence combines our capabilities across domain and data to create context that enables us find opportunities for our clients to improve performance, enhance customer experiences and increase profitability. Our digital professionals then orchestrate domain expertise, process excellence and advanced digital technologies in the right mix to deliver significant business outcomes.

We present information for the following reportable segments:

Effective January 1, 2020, we made certain operational and structural changes to more closely integrate our businesses and to simplify our organizational structure. We now manage and report financial information through our four strategic business units: Insurance, Healthcare, Analytics and Emerging Business, which reflects how management will review financial information and make operating decisions. These business units will develop client-specific solutions, build capabilities, maintain a unified go-to-market approach and be integrally responsible for service delivery, customer satisfaction, growth and profitability. In line with our strategy of vertical integration and focus on domain expertise, we have integrated our Finance & Accounting and Consulting operating segments within each of the Insurance and Healthcare operating segments based on the respective industry-specific clients.  Finance & Accounting and Consulting Services to clients outside of those industries, will now be part of our newly formed business unit and reportable segment ‘Emerging Business’. In addition, we integrated our former Travel, Transportation and Logistics, Banking and Financial Services, and Utilities operating segments under “Emerging Business” to further leverage and optimize the operating scale in providing operations management services.

 

Our new reportable segments effective January 1, 2020 are as follows:

 

This change in segment presentation will not have any effect on our consolidated statements of income, balance sheets or statements of cash flows. The revised presentation will be reflected in our subsequent periodic and annual reports.

Operations Management Services

Our operations management services, which we provide from our Insurance, Healthcare, Travel, Transportation and Logistics, Finance and Accounting, Banking and Financial Services, and Utilities operating segments, typically involve the transfer to EXL business operations of a client such as claims processing, clinical operations, or financial transaction processing, after which we administer and manage those operations for our client on an ongoing basis, or in case of consulting, consulting services related to transformation services, including digital transformation services. We use a focused industry vertical approach to manage our business and to provide a suite of integrated BPM services to organizations in the insurance, healthcare, travel transportation and logistics, banking and financial services and utilities industries in addition to providing finance and accounting and consulting services across these industries as well as to clients in other industries like manufacturing and media among others.

The key differentiators and salient features of our BPM services include our agile operating and delivery model utilizing domain and data expertise and process excellence, the Digital EXLerator Framework^TM , our ability to deploy a Business Process-as-a-Service (“BPaaS”) delivery model, business process automation (including robotics), consulting-driven digital transformation and our industry vertical focused approach. The Digital EXLerator Framework^TM, is our integrated approach to operations management which enables us to drive better customer outcomes by using advanced automation (such as robotics, advanced analytics and artificial intelligence), process optimization (lean six-sigma), along with smart workflow, driving better orchestration of human talent and technology.

While the majority of our operations management services are provided to clients using client-owned or licensed technology platforms, we also deliver our services across clients and industries using a BPaaS delivery model. The BPaaS delivery model includes the provision of a technology platform along with process management services. The service offering typically requires lower capital outlay, is faster to implement and is priced based on the number of transactions or usage by the client. These services may use standardized and shared technology and operational delivery infrastructure enabling us to leverage technology and infrastructure investments across multiple clients.

The operating segments providing operations management services are described below:

Our Insurance operating segment serves property and casualty insurance, life insurance, disability insurance, annuity and retirement services companies. We provide BPM services related to business processes in the insurance industry such as claims processing, subrogation, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business processing, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey, and customer service using the Digital EXLerator Framework^TM, robotics and advanced automation. We provide insurance policy administration and digital customer acquisition services using a BPaaS delivery model through our LifePRO ® and Liss platforms in order to help clients administer life insurance, health insurance, annuities and credit life and disability insurance policies. We also provide subrogation services to property and casualty insurers using a BPaaS delivery model and our proprietary Subrosource ® software platform, the largest commercial end-to-end subrogation platform. Subrosource ® integrates with client systems, manages recovery workflow, increases recoveries and reduces costs.

Our Healthcare operating segment primarily serves U.S.-based healthcare payers, providers and life sciences organizations. We provide BPM services related to Care Management, Utilization Management, disease management, payment integrity, revenue optimization and customer engagement directly addressing the market need for improved healthcare outcomes, reduced claims, medical and administrative costs, and improved access to the healthcare system in the healthcare market.

We offer BPaaS, software-as-a-service ("SaaS") and platform BPM services designed to serve the healthcare industry as well as proprietary technology platforms, robotics and advanced analytics. EXL’s CareRadius® and MaxMC® applications connect payors, providers and members with critical clinical information, and automates a payor's operations to increase efficiencies across all aspects of care management, including behavioral health.

Our Travel, Transportation and Logistics operating segment primarily serves clients in the travel & leisure and transportation and logistics industries, including less-than-truckload (LTL), truckload and intermodal logistics sectors. We provide BPM services related to business processes in corporate and leisure travel such as reservations, customer service, fulfillment and finance and accounting. Our operating model encompasses analytics driven transformation aimed at cost reduction and customer experience enhancement. In addition, we have expertise in processing transportation and logistics transactions, including supply chain management, warehousing, transportation management and international logistics services using advanced automation, including robotics process automation. For companies in the transportation and logistics sector, we provide sales, billing, collection, claims management, revenue management, accounting freight audit and payment and logistics engineering services. We are focused on developing new integrated solutions in this operating segment in the areas of customer experience and finance and accounting operations by combining our domain, data and digital capabilities. Our advanced analytics-based inside sales and revenue leakage prevention solutions are designed to deliver a direct topline impact to our customers.

Our Finance and Accounting (“F&A”) operating segment provides finance and accounting BPM and Digital Transformation services across an array of F&A processes, including procure-to-pay, order-to-cash, hire-to-retire, record-to-report, regulatory reporting, financial planning and analysis, audit and assurance, reconciliations, treasury and tax processes. This operating segment provides services across the five industry verticals within operations management as well as to clients in other industries like manufacturing, business services, media and retail among others. We partner with our clients to provide digital transformation services to help them simplify and scale their F&A processes, drive customer centricity, improve controls and compliance, reduce operating costs and deliver rich data driven insights to their businesses. We do this by meaningfully combining our deep capabilities in finance transformation, risk management, advanced analytics and intelligent automation, including Artificial Intelligence ("AI") and machine learning.

Our Banking and Financial Services operating segment offers a comprehensive range of BPM services across the spectrum of the banking and financial services industry, including residential mortgage lending, retail banking and credit cards, commercial banking and investment management. Our operating models encompass process re-engineering with improved customer experience and cost reduction. We integrate front, middle and back-office operations as one seamless experience with a digitally enabled customer journey and experience framework. Leveraging our deep end-to-end expertise within analytics, we are able to enhance the effectiveness of our client operations. EXL uses robotics process automation and proprietary business intelligence tools to innovate workflow management, transaction monitoring, and management information and reporting to enhance transparency in regulatory and management reporting. In addition to banks and financial services firms, EXL works with financial technology companies to supplement their marketing and sales operations, support their processing and underwriting as well as enhance their servicing and collections efforts.

Our Utilities operating segment services offers BPM services related to enhancing operating models, improving customer experience, reducing costs, shortening turnaround time and simplifying compliance for our clients. By leveraging our “Model Office” framework, we combine domain expertise, customer-centric operations management practices, robotics and advanced analytics capabilities with cloud-based billing and customer relationship management platform, digital services, industry-specific products, business process automation and robotics. We remain focused on bringing new analytics-led integrated solutions in this operating segment that are designed to deliver higher operational efficiencies and improved end customer experience for our clients.

 

Consulting

Our Consulting operating segment provides industry-specific digital transformational services, targeting select industries and functions across Insurance, Healthcare, Travel, Transportation and Logistics, Banking and Financial Services and Finance and Accounting. Our services are designed to address contemporary problems across the aforementioned domains, embracing the digital and analytics revolution, to deliver business models that help our clients realize their business and innovation goals and improve their strategic competitive position. Our digital consulting offerings include leveraging design thinking to help improve customer experience, using lean models to drive process excellence and using agile delivery models to implement digital technologies and interventions like customer experience transformation, advanced automation and robotics and enterprise architecture. Our approach to consulting is focused on delivering goals across growth and scalability, customer experience improvement, cost and efficiency as well as scale. We are focused on building and delivering industry solutions in insurance, healthcare and other verticals to drive end-to-end transformation across the service delivery value chain, spanning contact center automation, content extraction capabilities and onboarding, underwriting, claims processing, policy administration and finance, audit and compliance transformation.

We also offer a full range of finance transformation services to the CFO suite, including finance platform modernization and implementation, finance process transformation and digitization as well as governance, risk and compliance support. Our Finance Transformation practice works with CFOs and Chief Audit Executives to make their finance functions more efficient by improving the management of their risk and compliance efforts, enhancing performance, reducing cost, and increasing automation.

Analytics

We are a “Strategic Digital Transformation Partner” for our clients in analytics. By leveraging our full suite of analytics capabilities, our Analytics services focus on driving improved business outcomes for our customers by generating data-driven insights across all parts of our customers’ businesses. Our teams deliver predictive and prescriptive analytics in the areas of customer acquisition and life cycle management, risk underwriting and pricing, operational effectiveness, credit and operational risk monitoring and governance, regulatory reporting, and data management. We use a spectrum of advanced analytical tools and techniques, including our in-house Machine Learning (“ML”) and "AI" capabilities. We leverage and deploy our proprietary ML and AI solutions to help deliver improved business outcomes throughout our client's value chain and to address a range of complex industry-wide problems including:

Our Analytics team comprises over 4,500 professionals, including data scientists, data architects, business analysts, statisticians, modelers, industry domain specialists and data experts.

We help our customers leverage internal and external data sources, enhance their data assets, identify and visualize data patterns, and utilize data-driven insights to improve their effectiveness. Our Analytics services for our customers include:

•Identification, cleansing, matching and use of structured, semi-structured and unstructured data available both internally to our customer’s organization and externally;

•Deployment of analytics professionals and data scientists who utilize analytics tools, cutting edge statistical techniques and methodologies in ways designed to help customers better understand their data to generate actionable business insights;

•Design and implementation of services enabling data visualization and management reporting enabling business users to segment, drill-down, and filter data; and

•Integration of data insights and predictive models in the real-time decision making processes to drive measurable business impact.

Our Analytics engagements span both project work and longer-term arrangements where EXL provides ongoing analytics modeling and services for a year or more. We utilize domain and industry knowledge related to the business problem being considered to support these Analytics engagements across our various competencies including Data management, Advanced Analytics/AI, Functional, Data-enabled Marketing Solutions and Strategic Data Assets.

Our Analytics services support: (1) retail banking, commercial banking and investment banking and management for the banking and financial services industry; (2) actuarial, claims, informatics, CRM and marketing analysis, medical cost and care management, payment integrity and operational effectiveness in the healthcare industry; (3) marketing and agency management, actuarial, servicing and operations, customer management, and claims and money movement in the insurance industry; and (4) marketing analytics in the retail and media industries.

On July 1, 2018, we completed the acquisition of SCIO pursuant to an Agreement of Merger dated April 28, 2018 (the "Merger Agreement"). SCIO is a health analytics solution and services company serving healthcare organizations including providers, health plans, pharmacy benefit managers, employers, health services and global life sciences companies. SCIO provides Payment Integrity services mainly in the area of claims overpayment and abuse and waste related to healthcare spending. The acquisition of SCIO broadened our spectrum of healthcare capabilities to deliver more complex reimbursement optimization, subrogation as well care and risk and quality management to the healthcare industry. SCIO provides scalable predictive analytic solutions and services that transform data into actionable insights, helping healthcare organizations identify opportunities and prescribe actions to drive operational performance and address the healthcare waste epidemic while improving care quality industry.

Business Strategy

EXL is a business process management company providing operations management and analytics services and is a “Strategic Digital Transformation Partner” for our clients by deploying our Digital Intelligence framework. We help our clients become digitally intelligent by leveraging capabilities across data, advanced analytics, digital operations and domain expertise to deliver business outcomes across customer experience, efficiency and revenue.

Expanding our services in large addressable markets

We continue to focus on the insurance, healthcare and banking industries, which are large markets with high demand. We will also continue to build our client portfolio in Finance and Accounting and within our other business segments in an opportunistic manner. As we can continue to refine our focus, we are pursuing opportunities in other industries. We are uniquely equipped to support clients across every step of the digital transformation value chain with capabilities across Data and Data management, Business intelligence and Analytics, Digital Transformation Consulting, Digital Integration and Operations. Demand for these services is expected to exhibit strong growth in the next several years.

Integrating our capabilities

Our deep domain expertise has been central to our market differentiation. We are also well-positioned as one of the few players in the market with a full suite of analytics, strong operational excellence, technological platforms and digital toolkit to create integrated solutions and services under one brand.

Recruiting, Training, and Retaining the Most Talented Professionals

We have an integrated talent management framework that employs active collaboration between our recruitment, capability development and business human resource functions. We deploy innovative methods to recruit, train and retain our skilled employees. We focus on recruiting the right talent and developing them further on relevant competencies through our learning academies, rigorous promotion standards, client and industry specific training and competitive compensation packages that include incentive-based compensation. We are able to leverage shared resources across our services through personnel who have skillsets applicable to a wide variety of BPM services. We also have specialized experts in various domains, who develop specialization in our chosen industries and subject matters through our training academies. Our employee relations function ensures that we understand the pulse of our employees, and are able to swiftly respond to specific needs and concerns as they arise, through a central team of experts.

Cultivating Long-term Relationships and Expanding our Client Base

We continue to maintain our focus on cultivating long-term client relationships as well as attracting new clients. We believe there are significant opportunities for additional growth within our existing clients, and we seek to expand these relationships by:

We intend to continue building a portfolio of Fortune 500 and Global 2000 companies in our focus industries that have the most complex and diverse processes and, accordingly, stand to benefit significantly from our services. We also intend to cultivate long-term relationships with medium-sized companies in our focus industries leveraging our BPaaS and technology offerings.

Expanding our Global Delivery Footprint and Operational Infrastructure

We intend to further expand and invest in our network of delivery centers to service our clients. In 2019, we expanded our operations centers in India, South Africa and in the Philippines.

Pursuing Strategic Relationships and Acquisitions

We intend to continue making selective acquisitions in our focus industry verticals as well as to add to our capabilities. We consider selective strategic relationships with industry leaders that add new long-term client relationships, enhance the depth and breadth of our services and complement our business strategy. We also pursue select partnerships, alliances or investments that will expand the scope and effectiveness of our services by adding technology assets and intellectual property,

adding new clients or allowing us to enter new geographic markets. In 2018, we launched our Connected Intelligence Partnership programs to expand our technology and innovation ecosystem to accelerate client business outcomes from digital transformation. The Connected Intelligence program has enhanced our go-to-market opportunities with new programs for emerging innovators and startups, digital technology partners, industry solution partners and alliances and associations to deliver leading digital solutions and services to its clients.

Our Industry

Operations Management

BPM service providers work with clients to transfer their key business processes to reduce costs, improve process quality, handle increased transaction volumes and reduce redundancy. BPM providers can enable organizations to enhance profitability and increase efficiency and reliability, permitting them to concentrate on their core areas of competence. BPM is a long-term strategic commitment for a company that, once implemented, is generally not subject to cyclical spending or information technology budget fluctuations. Increased global demand, cost improvements in international communications and the automation of many business services have created a significant opportunity for BPM providers with offshore delivery capabilities, and many companies are moving select office processes to providers with the capacity to perform these functions from overseas locations. We believe the demand for BPM services will be primarily led by industries that are transaction-driven and that require significant customer interactions.

Analytics

Companies are increasingly looking to BPM service providers to provide a suite of analytics services, including statistical tools, models and techniques to clean, organize and examine structured and unstructured corporate data. This data is then used by companies to generate specific business-related analysis and insights into their business and prospects. The enhanced generation of business data across multiple formats, substantial reduction in data storage costs, growing enterprise demand for data-driven and real-time decision making and availability of sophisticated analytics tools have enabled companies to overcome a local shortage of specialized analytics talent and benefit from global labor markets. BPM service providers who can develop industry-specific analytics expertise are especially well poised to benefit from this global trend.

Sales, Marketing and Client Management

We market our services to our existing and prospective clients through our sales and client management teams, which are aligned by industry verticals and cross-industry domains such as finance and accounting and consulting. Our sales and client management teams operate from the U.S., Europe, Australia and South Africa are supported by our business development teams.

Our sales, marketing and business development teams are responsible for new client acquisitions, public relations, relations with outsourcing advisory companies, analyst relations and rankings, lead generation, knowledge management, content development, campaign management, digital or web presence, brand awareness and participation in industry forums and conferences. As of December 31, 2019, we employed approximately 150 sales, marketing, business development and client management professionals with the majority of them based in either the U.S. or Europe. Our professionals generally have significant experience in business process services, technology, operations, analytics and consulting.

Clients

EXL generated revenues from approximately 470 clients and 480 clients in 2019 and 2018, respectively (with annual revenue exceeding $50,000 per client). We have won 28 and 50 new clients during 2019 and 2018, respectively.

Our top three, five and ten clients generated 15.2%, 22.0% and 36.1% of our revenues, respectively, in 2019. Our top three, five and ten clients generated 16.4%, 23.7% and 37.2% of our revenues, respectively, in 2018. No client accounted for more than 10% of our total revenues in 2019 or 2018. Our revenue concentration with our top clients remains consistent year-over-year and we continue to develop relationships with new clients to diversify our client base. We believe that the loss of any of our ten largest clients could have a material adverse effect on our financial performance. See “Item 1A. Risk Factors-Risks Related to Our Business-We derive a substantial portion of our revenues from a limited number of clients.”

Our long-term relationships with our clients typically evolve from providing a single, discrete service or process into providing a series of complex, integrated processes across multiple business lines. For operations management services other than consulting, we enter into long-term agreements with our clients with typical initial terms of between three to five years. Consulting engagements have typical terms of six to twelve months. Agreements for Analytics services are either project based or have shorter initial terms, which are typically between one to three years. However, each agreement is individually negotiated with the client.

Competition

Competition in the BPM services industry is intense and growing. See “Item 1A. Risk Factors-Risks Related to Our Business-We face significant competition from U.S.-based and non-U.S.-based BPM and information technology (“IT”) companies and from our clients, who may build shared services centers to perform these services themselves, either in-house, in the U.S. or through offshore groups or other arrangements.” Many companies, including certain of our clients, choose to perform some or all of their customer-facing and back-office processes internally, utilizing their own employees to provide these services as part of their regular business operations. Some companies have moved portions of their in-house customer management functions offshore, including to offshore affiliates. We believe our key advantage over in-house business processes management is that we provide companies the opportunity to focus on their core products and markets while we focus on service delivery and operational excellence. We compete primarily against:

We compete against these entities by working to establish ourselves as a service provider with deep industry expertise, strong client relationships, leading industry talent, superior operational and process capabilities, differentiated technology and BPaaS solutions, and sophisticated analytic and consulting capabilities, which enable us to respond rapidly to market trends and the evolving needs of our clients.

Intellectual Property

Our intellectual property consists of proprietary and licensed platforms, software and databases, trade secrets, methodologies and know-how, trademarks, copyrighted software, operating procedures and other materials and patents and pending patent applications. We have numerous registered trademarks and logos registered with the U.S. Patent and Trademark Office and certain foreign jurisdictions and several pending trademark applications, as well as, three issued patents. We consider many of our business processes and implementation methodologies to be trade secrets or proprietary know-how and confidential information. To provide our services, in addition to our own proprietary tools, we use software and data licensed by us or our clients from third parties. We also use SaaS services from third parties pursuant to contracts with us or our clients. In particular, we have developed several strategic partnerships with robotics and process automation software companies to facilitate our offering of automation to our clients.

Clients and business partners sign nondisclosure agreements requiring confidential treatment of our information. Our employees are required to sign work-for-hire and confidentiality covenants as a condition to their employment.

Our technology group and various business lines develop proprietary tools that we deploy to support services for our clients. We typically retain ownership of any pre-existing tools. While working on client engagements, we also often develop new tools or methodologies, including robotics and process automation software or “bots,” and we endeavor to negotiate contracts that give us ownership or licenses to use or demonstrate such tools for other clients.

Information Security and Data Privacy

Overseen by management and our board of directors, we maintain a comprehensive program that focuses on information security, cyber security, data privacy and the protection of our clients’ and their customers’ confidential personal and sensitive information. We have invested in our information security and cyber security posture and protocols to support compliance with our contractual obligations and the laws and regulations governing our activities. These investments include people, processes and technology intended to protect information throughout its life cycle.

EXL focuses on implementing and maintaining cyber security capabilities to identify, protect, detect, respond and recover from cyber threats, incidents and attacks; reduce vulnerabilities and minimize the impact of cyber incidents. We emphasize compliance and institutional governance built upon and supported by policies and processes, tools and technologies, and knowledge and awareness training. EXL takes into account guidance from relevant regulatory and governance bodies, including but not limited to the Cyber Security Framework of the National Institute of Standards and Technology of the U.S. Department of Commerce, in designing controls and policies regarding security for sensitive and confidential information of EXL's clients, employee, partners, third parties and EXL’s owned products and services. EXL has undertaken measures designed to comply with new privacy regulations, including the European General Data Protection Regulation (EU) 2016/679 (“GDPR”) and the California Consumer Privacy Act (“CCPA”), as well as other national and state laws or regulations.

According to the needs of our clients as well as the regulatory requirements of the geographies in which we operate, many of our delivery centers are certified related to information security and health and environmental safety, such as the ISO 27001:2013 standard for information security management systems, the ISO 22301:2012 for Business continuity management systems, the ISO 9001:2008 standard for quality management system, the ISO 14001 for environmental management standards and the OHSAS 18001:2007 standard for occupational health and safety management systems. Certain delivery centers and processes are also compliant with HITRUST CSF™ and certified for other similar requirements. Some of our centers in the Philippines and South Africa and certain client processes in other operation centers in India are compliant with the Payment Card Industry Data Security Standard (PCI-DSS) version 3.2 or higher requirements. We engage independent firms to conduct General Controls and business process (SOC1and SOC2 - Type II) assessments on managed hosting environments that we offer in our Insurance and Healthcare verticals. EXL also engages third parties to conduct vulnerability assessment and penetration testing of its technology environment. For disaster recovery purposes, many of our key technology applications are hosted in ISO 27001 certified, SSAE18 SOC1 compliant Tier 4 data centers that are proactively monitored and managed 24 hours a day.

We have procured from leading technology providers and other third parties a robust, wide area network and international telecommunications capacity to support our global business operations. Our business continuity management plans include redundant locations, network infrastructure, power sources and other utilities to mitigate and manage operational risks as well as redundant, trained talent across our service delivery locations. These plans are documented, as well as tested on a periodic basis.

Employees

As of December 31, 2019, we had a headcount of approximately 31,700 employees, with approximately 21,200 employees based in India and approximately 6,900 employees in the Philippines. We have approximately 2,400 employees in the U.S, 200 employees in the U.K., 200 employees in Colombia, and 400 employees in the Czech Republic, Bulgaria, Romania, and 400 in South Africa and other geographies. None of our employees are unionized. We have never experienced any work stoppages and believe that we enjoy good employee relations.

Hiring and Recruiting

Our employees are critical to the success of our business. Accordingly, we focus on recruiting, training and retaining our professionals. We have developed effective strategies that enable an efficient recruitment process. We have over 110 employees dedicated to recruitment. Some of the strategies we have adopted to increase efficiency in our hiring practices include the utilization of online voice assessments and a centralized hiring center. Our hiring policies focus on identifying high quality employees who demonstrate a propensity for learning, contribution to client services and growth. Candidates must undergo numerous tests and interviews before we extend offers for employment. We also conduct background checks on candidates, including criminal background checks, where permitted and as required by clients or on a sample basis. In addition, where permitted and required for client services, we perform random drug testing on the workforce on a regular basis.

We offer our employees competitive compensation packages that include incentive-based compensation and offer a variety of benefits that vary by facility, including free transport to and from home in certain circumstances, subsidized meals and free access to recreational facilities that are located within some of our operations centers. Our attrition rate for employees who had been with EXL for more than 180 days was 33.2% and 31.8% for the years ended December 31, 2019 and 2018, respectively. As competition in our industry increases, our turnover rate could increase. See “Item 1A. Risk Factors-Risks Related to Our Business-We may fail to attract and retain enough sufficiently trained employees to support our operations, as competition for highly skilled personnel is intense and we experience significant employee turnover rates.”

Capability Development and Training

We maintain a strong focus on capability development, with an emphasis on digital transformation and domain expertise. Our talent development strategy is comprehensive, aligned to overall business strategy. Our talent strategy includes developing expertise around the specific technologies, tools, and frameworks required to successfully execute projects for our clients in a digital economy. We create thought leaders with high industry acumen who are better able to address our clients’ requirements. We also provide a career -linked learning path to our employees from new hires to tenured employees to senior levels of leadership.

Our domain academies focus on building domain expertise through certifications and specialization. These include our Insurance Academy, Travel Academy, Finance and Accounting Academy, Healthcare Academy, Analytics Academy, Utilities Academy, Consulting Academy and Digital Academy.  These domain academies focus on achieving excellence and developing skill sets that can be used across the different domains. Our training includes behavioral and functional components to enhance and ensure job readiness as well as also boosting ongoing productivity and effectiveness. We also focus on

promoting better diversity and inclusion through our training programs. We have a global presence catering to the specific learning requirements of each geography. We provide learning through our blended learning methodology comprising of classroom, on the job coaching and technology led learning.

Corporate Social Responsibility

The world we work and live in is full of diversity and powered by innovation. We believe success in such a world will come through an environment that embraces diversity of thought. We believe that pursuing our corporate social responsibility goals, including charitable and civic activities and environmental, health and safety initiatives, will make us a stronger, more impactful organization to work for and to deliver exceptional results for our clients.

Diversity & Inclusion

Our Diversity & Inclusion (D&I) philosophy is to create an inclusive work environment and leverage diversity to enable the organization to effectively capitalize on the differing views and contributions that each employee brings to the workplace. Nearly our entire workforce is trained on D&I.

We are particularly focused on creating an impact at the senior leadership level. EXL’s overall gender diversity is at 38% with over 12,000 female employees across the globe, and our Operating Committee, has 33% gender diversity.

In addition, we maintain a supplier diversity program in the United States designed to provide opportunities for qualified diverse businesses.

Women in Leadership

EXL is committed to providing a supportive working environment and career opportunities for our female employees.

EXL has several programs to promote career advancement, including leadership development for women at the mid to senior level, a separate program to improve the retention and engagement of new mothers through employee friendly parental leave and similar policies, and our WE (Women at EXL) platform, which is designed to enable women at EXL advance their career and achieve professional growth through discussion, collaboration, networking, training, development and mentorship opportunities.

Charitable and Community Activities

EXL finds meaningful ways to help the communities in which we operate. We contribute to positive social change by engaging in charitable programs to help transform lives. On our own and in partnership with our clients, we support education initiatives, disaster relief efforts, and global health initiatives. These programs align with the expectations clients have of service providers as well as benefit our other stakeholders.

Environmental, Health and Safety

We strive to continuously improve in the area of environmental, health and safety initiatives (“EHS”), with a focus on reducing our carbon footprint, energy conservation, waste minimization, and green infrastructure and operations. We believe that these measures will also help us in sustainable development efforts. Where practical, we seek to integrate EHS with our business activities, focusing on conducting our activities in an environmentally responsible manner and ensuring the health and safety of the Company’s employees, contractors, customers, visitors and the communities where the Company operates.

Regulation

Our operations sometimes are subject to rules, regulations and statutes in the countries where we have operations and where we deliver services as a result of the diverse and complex nature of our service offerings. More often, however, our clients contractually require that we comply with certain rules and regulations applicable to their specific industries.

We are one of the few service providers that can provide third-party administrator insurance services from India and the Philippines and are currently able to provide such services in the U.S. for 49 states and 48 states (including the District of Columbia), respectively. Additionally, our subsidiary in the Philippines is able to provide utilization review services in the U.S. for 43 states (including the District of Columbia). Further, through domestic subsidiaries, we are licensed or otherwise eligible to provide third-party administrator services in all states within the U.S. as well as utilization review, insurance

adjuster, and insurance producer services in select states. We are required to maintain licenses in various jurisdictions or require certain categories of our professionals to be individually licensed in service areas such as debt collection, utilization review, workers’ compensation utilization review, insurance adjuster, and telemarketing services. Our facilities in the Philippines as well as one domestic subsidiary are accredited by the Utilization Review Accreditation Commission (URAC) and National Committee for Quality Assurance (NCQA), both leading healthcare and education accreditation organizations. We continue to obtain licenses and accreditations required from time to time by our business operations.

Our operations are also subject to compliance with a variety of other laws, including U.S. federal and state regulations that apply to certain portions of our business such as the Fair Credit Reporting Act, the Foreign Corrupt Practices Act, the Federal Trade Commission Act, the Gramm-Leach-Bliley Act, the Health Insurance Portability and Accountability Act of 1996, the Health Information Technology for Economics and Clinical Health Act of 2009, GDPR and the UK Bribery Act- as well as state and local laws, such as the CCPA. We also must comply with applicable regulations relating to health, financial and other personal information that we handle as part of our services.

We benefit from tax relief provided by laws and regulations in India and the Philippines from time to time. Regulation of our business by the Indian government affects us in several ways. During the last several years, we either established or acquired new centers that are eligible for tax benefits under the Special Economic Zones Act, 2005 (the “SEZ Act”). The SEZ Act introduced a 15-year tax holiday scheme for operations established in designated special economic zones (“SEZs”). Under the SEZ Act, qualifying operations are eligible for a deduction from taxable income equal to (i) 100% of their export profits derived for the first five years from the commencement of operations; (ii) 50% of such export profits for the next five years; and (iii) 50% of the export profits for a further five years, subject to satisfying certain capital investment requirements. The SEZ Act provides, among other restrictions, that this holiday is not available to operations formed by splitting up or reconstructing existing operations or transferring existing plant and equipment (beyond a prescribed limit) to new SEZ locations. We anticipate establishing additional operations centers in SEZs or other tax advantaged locations in the future. See “Item 1A - Risk Factors - Risks related to the International nature of our business - Our financial condition could be negatively affected if foreign governments introduce new legislation, reduce or withdraw tax benefits and other incentives currently provided to companies within our industry or if we are not eligible for these benefits.”

We also benefitted from a corporate tax holiday in the Philippines for some of our operations centers established there over the last several years. The Company registered with the Philippines Economic Zone Authority (“PEZA”) and is therefore eligible for income tax exemption for four years. This exemption incentive may be extended in certain instances upon fulfillment of certain conditions. Following the expiry of the tax exemption, income generated from centers in the Philippines will be taxed at the prevailing annual tax rate.

Available Information

We file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The SEC maintains a website (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically through the EDGAR System. You may access the information filed by us with the SEC by visiting its website.

We also maintain a website at http://www.exlservice.com. Information on our website does not constitute a part of, nor is it incorporated in any way, into this Form 10-K or any other report we file with or furnish to the SEC. We make available, free of charge, on our website our annual reports on Form 10-K, quarterly reports on Form 10-Q, proxy statements, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after such reports are electronically filed with, or furnished to, the SEC. Our website also includes announcements of investor conferences and events, information on our business strategies and results, corporate governance information, and other news and announcements that investors might find useful or interesting.