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Item 1. Business

2024-02-29 compared with 2023-02-23 · 165 added, 189 removed, 157 unchanged (69% of the section changed)

ExlService Holdings, Inc.

(“EXL,” “we,” “us,” “our” or the “Company”), incorporated in Delaware in 2002, is a leading data analytics and digital operations and solutions company that partners with clients to improve business outcomes and unlock growth.

By bringing together deep domain expertise with robust data, powerful analytics, cloud, artificial intelligence (“AI”) and machine learning (“ML”), we create agile, scalable solutions and execute complex operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media, and retail, among others.

Focused on driving faster decision making and transforming operating models, EXL was founded on the core values of innovation, collaboration, excellence, integrity and respect.

Headquartered in New York, our team is over 45,400 strong, with more than 50 offices spanning six continents.

We deliver data analytics and digital operations and solutions to our clients, driving enterprise-scale business transformation initiatives that leverage our deep expertise in advanced analytics, AI, ML and cloud.

Data, analytics and digital have become core to virtually every significant move a business makes to serve customers, optimize business processes, stay competitive and grow.

Our vision of being an indispensable partner for data-led businesses reflects where the data and technology-led transformation of our clients’ businesses is trending across industry sectors, and we are evolving our offerings to drive business outcomes through advanced analytics and AI-powered solutions on the cloud.

Our data-led value creation framework enables better and faster decision making, leveraging our end-to-end data and analytics capabilities to drive improved business outcomes, and re-designing of operating models to integrate advanced technology into operational workflows.

We embed digital operations and solutions into clients’ businesses and introduce our data-led approach to transform operations with every new engagement.

(“EXL,” “we,” “us,” “our” or the “Company”), incorporated in Delaware in 2002, is a leading data analytics and digital operations and solutions company.

We partner with clients using a data and AI-led approach to reinvent business models, drive better business outcomes and unlock growth with speed.

EXL harnesses the power of data, analytics, artificial intelligence (“AI”), and deep industry knowledge to transform operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media and retail, among others.

EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect.

We are headquartered in New York and have approximately 54,000 employees spanning six continents.

Data, AI, analytics and digital have become core to virtually every significant move a business makes to serve customers, optimize business processes, stay competitive and grow.

Our vision of being an indispensable partner for data and AI-led businesses reflects the long-term priorities of our clients' businesses across industry sectors, and we continue to evolve our offerings to drive business outcomes through advanced analytics and AI-powered solutions on the cloud.

Our data and AI-led value creation framework enables better and faster decision making, leveraging our end-to-end data, analytics, AI capabilities and deep industry knowledge to drive improved business outcomes, and re-designing of operating models to integrate advanced technology into operational workflows.

We embed digital operations and solutions into clients’ businesses and introduce our data and AI-led approach to transform operations with every new engagement, which helps our clients achieve better customer experience, higher productivity, cost efficiency and improved business outcomes.

We manage and report financial information through our four reportable segments or strategic business units:

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Digital Operations and Solutions

Our digital operations and solutions, which we provide from our Insurance, Healthcare and Emerging Business strategic business units, are focused on solving complex industry challenges, such as the insurance claims life cycle, financial transactions processing and provider and member experiences.

This typically involves the use of agile delivery models to implement digital technologies and interventions like hyper-automation, customer experience transformation, advanced automation, robotics, enterprise architecture, end-to-end business function management and transformations.

We either administer and manage these functions for our clients on an ongoing basis via longer-term arrangements or project work.

Our digital operations and solutions, which we deploy for our clients from our Insurance, Healthcare and Emerging Business strategic business units, are focused on solving complex industry challenges.

We use a focused industry vertical approach, and our solutions are designed to help our clients realize their business and innovation goals and improve their strategic competitive position.

The key differentiators and salient features of our digital operations and solutions include our agile operating and delivery model, which leverages AI/ML-based content extraction, natural language processing and cloud-based operations to automate business processes and improve speed to market.

We integrate AI/ML and data on the cloud to digitally transform legacy models and support real-time insights, faster decision making and streamlined operations.

This approach positions us to digitally transform our clients’ enterprise-wide data flows to deliver meaningful customer experience, business outcomes and efficiency improvements.

Some of the key digital capabilities embedded in our digital operations and solutions include:

Integrated cloud-native AI solutions with deep domain expertise and process transition experience to deliver a cloud receiving center for business processes;

• Xtrakto.AI:

AI-driven automation of manual processing of text, image and financial data;

AI-infused experiences across multiple customer journeys and touchpoints;

AI-powered customer centricity and digitization in payment and collection processes;

• POS Financing:

AI-powered Buy Now, Pay Later solution, reimagining an integrated and coherent sales and credit journey.

We deliver digital operations and solutions to clients through multiple technology approaches, including using client environments, EXL platforms and leveraging third-party solutions from our partner ecosystem.

Where possible, our aim is to use standardized and shared technology and operational delivery infrastructure, enabling us to leverage technology and infrastructure investments across multiple clients.

Some of our data and AI-led digital operations and solutions include:

a) multi-modal data ingestion using AI, and converting unstructured content into curated and usable data, b) real-time and comprehensive data insights, including end-to-end data management and building a 360-degree view of our clients’ customers, c) omni-channel and frictionless customer experience including self-service, conversational AI and smart agent assist, d) intelligent and AI-powered redesign and automation of transaction processing and e) automated quality, compliance and audit.

Some of our clients’ operations that we have transformed using the above solutions include underwriting operations, claims processing, accounts payables processing, utilization management, member and provider contact center services and collections and accounts receivables.

We either manage and digitally transform these operations for our clients by deploying our solutions through a software-as-a-service (“SaaS”) model via our partners’ cloud network or a client’s on-cloud deployment model, to digitally transform their retained operations.

The key digital and AI capabilities that allow us to drive data and technology-led transformation for our clients include generative AI, reinforcement learning, hyper-automation, cloud data management, conversational AI, robotics, enterprise architecture development, integration platform as a service and AI for Operations.

Some of our key solutions are:

• Generative AI platform for the development and deployment of our proprietary solutions, including, among others, Smart Agent Assist, Claims Assist, Conversational Business Intelligence and Code Harbor.

• Xtrakto.AI is a patented and AI-powered solution designed to alleviate the challenges of managing unstructured data.

• PayMentor is an AI-powered collections and receivables management solution designed to enhance the debt collection process.

• Digital Finance Suite automates and streamlines financial processes and key finance and accounting tasks, which helps customers gain real-time visibility into financial operations leading to faster decision making and reduced risks, among others.

• Data and AI-led Customer Experience:

Delivers AI-infused customer experiences across multiple customer journeys and touchpoints.

• Digital Lending and Embedded Financing:

AI-powered financing solution that reimagines and delivers a seamless and end-to-end origination, service and payments journeys for multiple credit and loan products across industries.

• Data and AI-led Automation Solution eliminates friction and fragmentation in transaction processing using some of our proprietary workflow solutions.

We use AI, data, and cloud technology, including our suite of solutions and accelerators, in a standardized, reusable and shared engineering and delivery infrastructure, enabling us to leverage our investments across multiple clients.

Our strategic business units, through which we provide digital operations and solutions, are described below:

Our Insurance strategic business unit serves property and casualty insurance, life insurance, disability insurance, insurance brokers, reinsurers, annuity and retirement services companies.

We provide digital transformation and solutions and data-led operations services across the insurance industry in areas such as claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business acquisition, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey and customer service using digital technology, AI, ML and advanced automation.

We provide end-to-end third-party administration for life and annuity insurance policies which includes digital customer acquisition services using a software-as-a-service (“SaaS”) delivery model through our LifePRO® and Life Digital Suite platforms that help clients administer life insurance, annuities and credit life and disability insurance policies.

We also provide subrogation services to property and casualty insurers using business process-as-a-service (“BPaaS”) delivery model and our proprietary Subrosource® software platform, the largest commercial end-to-end subrogation platform.

Our Insurance strategic business unit serves property and casualty insurance, life insurance, disability insurance, insurance brokers, reinsurers, annuity and retirement services and insurtech companies.

We provide end-to-end digital transformation solutions and data and AI-led operations services across the insurance industry in areas such as claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business acquisition, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey and customer service using digital technology, AI, including generative AI, ML and advanced automation.

We provide end-to-end third-party administration for life and annuity insurance policies, which includes digital customer acquisition services using a SaaS delivery model through our LifePRO® and Life Digital Suite platforms that help clients administer life insurance, annuities and credit life and disability insurance policies.

We also provide subrogation services to property and casualty insurers using a business process-as-a-service 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.

We provide a suite of finance and accounting services that include high-end, data-led services including financial planning and analysis, decision support, GAAP and statutory reporting and compliance services in addition to core finance operations.

We bring a data-led and practical digital approach to finance and accounting, enabling our clients to simplify and scale their finance and accounting processes, drive stakeholder centricity, improve controls and compliance, reduce operating costs and deliver rich data-led insights to our clients’ businesses.

We provide a suite of data and AI-led finance and accounting services that include financial planning and analysis, decision support, GAAP and statutory reporting and compliance services in addition to core finance operations.

We bring a data and AI-led and practical digital approach to finance and accounting, enabling our clients to simplify and scale their finance and accounting processes, drive stakeholder centricity, improve controls and compliance, reduce operating costs and deliver rich data and AI-led insights to our clients’ businesses.

Our Healthcare strategic business unit primarily serves U.S.-based healthcare payers, providers and pharmacy benefit managers organizations.

We combine deep healthcare domain expertise with data-led insights and technology-enabled services to transform how care is delivered, managed and paid.

We combine deep healthcare domain expertise with data and AI-led insights and technology-enabled services to transform how care is delivered, managed and paid.

We provide 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, patient and provider experience and access to the healthcare system in the healthcare market and optimized healthcare spend.

We offer digital operations, SaaS and platform services designed to serve the healthcare industry.

EXL’s integrated care management offering, including our proprietary clinical data, connects payers, providers and members to increase efficiencies and effectiveness across all aspects of care management, including medical, pharmacy and behavioral health.

Our digital operations and solutions infuse cloud, data, AI, ML, advanced analytics and robotics capabilities to improve efficiency, business outcomes and the consumer experience in healthcare across patient/member management, contracting and network management, health and care management, claims administration and business operations.

Our integrated care management offering, including our proprietary clinical data, connects payers, providers and members to increase efficiencies and effectiveness across all aspects of care management, including medical, pharmacy and behavioral health.

Our data and AI-led digital operations and solutions infuse advanced analytics, AI, generative AI, cloud, ML and robotics capabilities to improve efficiency, business outcomes and the consumer experience in healthcare across patient/member management, contracting and network management, health and care management, claims administration and business operations.

Similar to our Insurance strategic business unit, we also provide finance and accounting services, digital transformation and advisory/consulting services for our clients in the healthcare industry.

Our Emerging Business strategic business unit provides data-led enterprise solutions in the areas of revenue enhancement, finance & accounting and customer experience management to clients primarily in the banking and capital markets, utilities, travel and leisure, transportation and logistics, media and communications, manufacturing, retail and business services industries.

Our Emerging Business strategic business unit provides data and AI-led enterprise solutions in the areas of finance and accounting, customer experience management and revenue enhancement to clients primarily in the banking and capital markets, utilities, retail and consumer packaged goods, technology, media, and telecom, travel and leisure, manufacturing, transportation and logistics and business services industries.

These enterprise solutions complement our domain-specific industry solutions enabling our clients to deliver superior performance.

Our revenue enhancement solutions include lead generation, inside sales and digital marketing, pricing, customer and marketing analytics, billing and proprietary revenue assurance solutions, helping deliver direct topline and margin impact to our clients’ business.

Our data-led finance and accounting services include high-end analytical services, including financial planning and analysis, management reporting, advanced forecasting and decision support, data management, regulatory reporting and risk and compliance services in addition to core transactional finance operations.

Powered by our integrated cloud-based hyper-automation and insights platform EXL Digital Finance Suite, we help chief financial officers transform finance into a digitally enabled, scalable data-led function with lower cost to serve, superior business outcomes and improved stakeholder experience.

Our client experience management solutions that run on our proprietary CONNECx platform, help our clients improve their end-customer experience across the front, middle and back-office, integrating data flows, redesigning customer service processes and leveraging digital omni-channel platforms.

To deliver these solutions, we combine our deep domain operations

expertise with advanced analytics and digital capabilities, including robotics, proprietary and partner-driven AI and ML solutions.

Our data and AI-led finance and accounting services include high-end analytical services, including financial planning and analysis, management reporting, advanced forecasting and decision support, data management, regulatory reporting and risk and compliance services in addition to core transactional finance operations.

Our Digital Finance Suite, which is

powered by our integrated cloud-based hyper-automation and insights platform, helps chief financial officers transform finance into a digitally enabled, scalable data and AI-led function with lower cost to serve, superior business outcomes and improved stakeholder experience.

Our client experience management solutions that run on our proprietary EXL CONNECX TM platform, help our clients improve their end-customer experience across the front, middle and back-office, integrating data flows, redesigning customer service processes and leveraging digital omni-channel platforms.

To deliver these solutions, we combine our deep industry knowledge with advanced analytics and digital capabilities, including robotics, proprietary and partner-driven AI and ML solutions.

Our revenue enhancement solutions include lead generation, inside sales and digital marketing, pricing, customer and marketing analytics, billing and proprietary revenue assurance solutions, which helps deliver direct topline and margin impact to our clients’ business.

We also provide industry-specific digital operations and solutions.

For our clients in the banking and financial services sector, we provide a range of digital solutions, including residential mortgage lending, title verification and validation, retail banking and credit cards, trust verification, commercial banking and investment management.

In the retail and consumer packaged goods sector, we provide supply chain management services and analytical services including merchandising, pricing and demand forecasting.

For our clients in the utilities sector, we offer digital operations and solutions related to end-to-end customer life cycle management including onboarding and terminations, engineering field services, customer service, billing and debt management and collections.

In the technology, media, and telecom sector, we manage media and advertising reconciliations, order entry, fulfillment and licensing management operations.

For our clients in the travel and leisure sector, we provide corporate and leisure travel services, including, reservations, customer service and fulfilment services.

In the transportation and logistics sector, we provide our clients with freight billing, collections, claims management, freight audit, freight scheduling, supply chain management and revenue assurance services.

For our clients in the banking and financial services sector, we provide a comprehensive range of digital solutions, including residential mortgage lending, title verification and validation, retail banking and credit cards, trust verification, commercial banking and investment management.

For our clients in the retail sector, we provide supply chain management services and analytical services including merchandising, pricing and demand forecasting.

Our Analytics strategic business unit helps clients build data-led businesses using AI and advanced analytics solutions and services.

By leveraging our suite of end-to-end analytics capabilities, we aim to drive better business outcomes for our clients by unlocking deep insights from data and creating data-led solutions across all parts of clients’ businesses.

Our Analytics strategic business unit helps clients build data-led businesses using AI, generative AI, advanced analytics solutions and services, and cloud technology.

By leveraging our suite of end-to-end analytics capabilities, we aim to drive better business outcomes for our clients by unlocking deep insights from data and creating data and AI-led solutions across all parts of clients’ businesses.

Our Analytics 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 enhance, modernize and enrich structured and unstructured data and use a spectrum of advanced analytical tools and techniques, including our in-house AI and ML capabilities and proprietary solutions, to create insights, improve decision making for our clients and address a range of complex industry-wide priorities, including:

We enhance, modernize and enrich structured and unstructured data and use a spectrum of advanced analytical tools and techniques, including our in-house and third-party AI, generative AI, and ML capabilities and proprietary solutions, to create insights, improve decision making for our clients and address a range of complex industry-wide priorities, including:

• Superior customer experience, driving engagement, loyalty and increasing cross-sell through a deeper understanding of consumer behavior;

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• Enhanced decision-making in underwriting, claims processing and policy renewal through cognitive image analytics;

Our Analytics team is comprised of approximately 8,200 professionals, including data scientists, data architects, business analysts, statisticians, modelers, industry domain specialists and data experts.

We help our clients leverage internal and external data sources, enhance their data assets, identify and visualize data patterns, and utilize data-led insights to improve their effectiveness.

• Payment integrity services in the U.S.

healthcare industry ensuring accurate reimbursement and help prevent fraud, denials, and revenue leakage.

Our Analytics team is comprised of approximately 9,100 professionals, including data scientists, data architects, business analysts, statisticians, modelers and industry domain specialists.

We help our clients leverage internal and external data sources, enhance their data assets, identify and visualize data patterns, and utilize data and AI-led insights to improve their effectiveness.

Our Analytics services for our clients include:

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

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

• Integration of data insights and predictive models into real-time, decision-making processes to drive measurable business impact;

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• 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;

Our Analytics engagements span both project work and longer-term arrangements where EXL provides ongoing analytics modeling and services for a year or longer.

We utilize our domain and industry knowledge to drive these engagements across our various competencies including data management and cloud enablement, AI, ML and advanced analytics and insights, data-enabled marketing solutions and strategic data assets.

• Harnessing the power of AI, including generative AI to elevate decision-making paradigms, enabling our clients to achieve a sustainable competitive advantage amid rapid technological innovation.

Our Analytics engagements span both project work and longer-term arrangements where we provide ongoing analytics modeling and services for a year or longer.

We utilize our deep industry knowledge to drive these engagements across our various competencies, including, data management and cloud enablement, AI, generative AI, ML, advanced analytics and insights, 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 industries;

(2) marketing analytics, clinical analytics, patient engagement and pharmaco-

economics outcomes in the healthcare industry;

(2) marketing analytics, clinical analytics, patient engagement, pharmaco-economics outcomes and cost optimization solution in the healthcare industry;

(3) marketing and agency analytics, actuarial, servicing and operations, customer management and claims and money movement in the insurance industry;

and (4) marketing analytics, supply chain, logistics and digital operations and solutions in the retail, media and entertainment industries.

Over the past two years, we have seen a significant acceleration in the shift to digital and cloud-based solutions across all our target markets, including as a result of the COVID-19 pandemic.

Capturing data and enriching data has become a key differentiator for clients and their speed of decision making necessitating the adoption of advanced AI and ML techniques.

and (4) marketing analytics, supply chain, logistics and digital operations and solutions in the retail and consumer packaged goods, media and telecom and utilities and manufacturing industries.

We have seen a significant acceleration in the shift to digital and cloud-based solutions across all our target markets over the past few years.

Capturing data and enriching data has become a key differentiator for clients and their speed of decision making necessitating the adoption of AI, including generative AI and ML techniques.

The accelerated adoption of cloud-based solutions has increased our clients’ needs for a suite of cloud migration and enablement capabilities.

We expect the trend in increased demand for analytics solutions to continue, and to capture these new opportunities, we are building a scalable and customizable multi-cloud cross-sector AI and advanced analytics platform with pre-built accelerators and packaged solutions.

This platform will expand our target addressable market and help monetize our intellectual property through ‘as-a-service’ models.

During 2022, we made significant progress in the development of solutions on our analytics platform.

We now have three solutions that are live on this platform with several client deployments in-progress and others under development.

Our EXLClarity TM platform supports payers’ and providers’ risk adjustment and quality management programs to close clinical gaps and optimize revenue, and our EXLVantage TM platform offers robust population health analytics that can be leveraged by payer and provider customers to drive insights and associated actions for improved outcomes in quality and efficiency performance for care and network optimization.

In addition, our population health analytics models can be leveraged with our campaign management and marketing analytics to support member acquisition and clinical program intervention management.

We expect the trend in increased demand for analytics solutions to continue, and to capture these new opportunities, we have built a scalable and customizable multi-cloud cross-sector generative AI platform with pre-built accelerators and packaged solutions.

Our AI and analytics solutions include Bank Transaction Insights, which provides insights from bank data and Customer 360 Insights, which provides agent and customer relationship insights.

Our EXLClarity TM platform supports risk adjustment and quality management for payers and providers and helps to optimize their revenue.

Our payment services support payment integrity and maximize performance and financial-related results by leveraging our multi-payer dataset and applying digital solutions, such as AI, natural language processing and robotics.

These services involve verifying the correct party pays the claim, membership eligibility, contractual adherence, and detecting and preventing fraud, waste, and abuse.

Our EXLVantage TM platform offers population health analytics for enhanced care and network optimization.

These analytics models integrate with campaign management and marketing analytics to support member acquisition and clinical program interventions.

We offer end-to-end data management services to support data strategy, ingestion, normalization, quality, security, governance, visualization and data architecture development and deployment via agnostic tools and flexible delivery models.

Our acquisition of Clairvoyant AI, Inc.

(“Clairvoyant”) in December 2021 strengthened our data analytics capabilities with additional expertise in data and product engineering, machine learning operations, cloud enablement and managed services.

During 2022, we were able to cross-sell these capabilities and expand our footprint within our existing clients in the insurance, healthcare, banking and financial services and retail industries.

We continue to strengthen our expertise in data and product engineering, ML operations, cloud enablement and managed services.

We have expanded our footprint within our existing clients in the insurance, healthcare, banking and financial services, retail and consumer packaged goods, media and telecom, utilities and manufacturing industries by cross-selling our enhanced data management and cloud enablement offerings.

Business Strategy

EXL is a leading data analytics and digital operations and solutions company and is a key strategic partner for data-led businesses.

We drive business outcomes for our clients through advanced analytics and AI/ML-powered digital solutions on the cloud.

We do this through our data-led value creation framework to enable better and faster decision making, and we re-design operating models to integrate advanced technology into operational workflows.

EXL is a leading data analytics and digital operations and solutions company and is a key strategic partner for data and AI-led businesses.

We reinvent business models, drive better business outcomes and unlock growth with speed for our clients through advanced analytics and AI -powered digital solutions on the cloud.

We do this through our data and AI-led value creation framework to enable better and faster decision making, leveraging our end-to-end data and analytics

capabilities to drive improved business outcomes, and we re-design operating models to integrate advanced technology into operational workflows.

Below are some of our strategically focused considerations:

Expanding our Services in Large Addressable Markets

We continue to focus on the insurance, healthcare, banking, retail, media and technology industries, among others, which are large markets with high demand, as well as pursuing opportunities in emerging industries.

We continue to focus on the insurance, healthcare, banking and financial services, retail, media and technology industries, among others, which are large markets with high demand, as well as pursuing opportunities in emerging industries.

We also continue to build our client portfolio in finance and accounting and consulting services in all our business segments.

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Demand for our services is expected to continue to exhibit growth in the next several years.

Integrating our Data-led and Domain Capabilities

The combination of our data-led capabilities and domain expertise has been central to our market differentiation.

We are also well-positioned with our suite of advanced analytics, data and AI-based digital solutions to create integrated services and solutions under one brand.

Integrating our Data and AI-Led and Domain Capabilities

The combination of our data and AI-led capabilities and domain expertise has been central to our market differentiation.

We are also well-positioned with our suite of advanced analytics, data and AI-powered digital solutions on the cloud to create integrated services and solutions under one brand.

Cultivating Long-term Relationships and Expanding our Client Base

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• Increasing the depth and breadth of the services we provide across our clients’ value chains and geographies;

• Offering the full suite of EXL services, which includes digital operations and solutions, consulting and data analytics services;

• Offering the full suite of EXL services, which includes AI-powered digital operations and solutions, consulting and data analytics services;

• Supporting our clients’ geographic expansions by leveraging our global footprint.

We intend to continue building a portfolio of Fortune 500 and Global 2000 companies in our focus industries that have complex and diverse data-led 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 by leveraging our BPaaS and digital offerings.

Optimizing our Global Delivery Footprint and Operational Infrastructure in the Countries and Regions in Which we Operate

Our network of delivery centers and operational footprint is designed to serve the needs of our business, including delivering for our clients, driving efficiencies and adapting to hybrid and remote working models.

We intend to continue building a portfolio of Fortune 500 and Forbes Global 2000 companies in our focus industries that have complex and diverse data-led 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 by leveraging our data analytics, and digital operations and solutions offerings.

Optimizing our Global Delivery Footprint and Operational Infrastructure in the Countries and Regions where we Operate

As part of our ongoing evaluation of facilities usage and business needs, we continually optimize our network and footprint.

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Digital operations and solutions

As a provider of digital operations and solutions, we work with clients to execute enterprise-scale business transformation initiatives that enable improved customer experience, revenue growth, operational efficiency and reduced risk.

Our asset-based operations services combine the industry-specific knowledge of our global workforce with an ecosystem of partner and proprietary digital solutions.

These digital solutions help clients achieve their desired outcomes in three key ways:

1) leveraging advanced analytics that combine publicly available data, proprietary data sets and clients’ own data to help power faster, more strategic decision making, 2) integrating AI/ML-driven natural language processing solutions to help streamline manual, labor-intensive workflows and improve end-customer engagement and experience, and 3) implementing AI/ML-powered operating models that help our clients transition from legacy business operations and get to market faster.

1) leveraging advanced analytics that combine publicly available data, proprietary data sets and clients’ own data to help power faster, more strategic decision making, 2) integrating AI/ML-driven natural language processing to help streamline manual, labor-intensive workflows and improve end-customer engagement and experience, and 3) implementing AI/ML-powered operating models that help our clients transition from legacy business operations and get to value faster.

This comprehensive approach acknowledges the critical role that digital capabilities play in both the operational business process and consumer-facing customer engagement and user experience, as our clients’ customer touch points, interactions and experiences have increasingly shifted to digital channels.

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Increased global demand, cost improvements in international communications and the automation of many business services have created opportunities for digital operations 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 digital operations and solutions will be led primarily by industries that are transaction-driven and require extensive customer interaction.

Data Analytics

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Leveraging a large number of high-frequency, granular, non-traditional data elements aggregated across proprietary data sets, client data and publicly available sources, advanced analytics enables clients to deliver personalized customer experiences at scale, settle consumer issues efficiently and rapidly adapt their business strategies in response to market changes.

The enhanced generation of business data across multiple formats, substantial reduction in data storage costs, growing enterprise demand for data-led decision making and availability of sophisticated analytics tools, have enabled companies to

make better decisions.

The enhanced generation of business data across multiple formats, substantial reduction in data storage costs, growing enterprise demand for data and AI-led decision making and availability of sophisticated analytics tools, have enabled companies to make better decisions.

By leveraging our end-to-end service offerings, we develop industry-specific AI and advanced analytics solutions and generate data insights, which makes us well-positioned 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, 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, 2022, we employed approximately 231 sales, marketing, business development and client management professionals, with the majority of them based in either the U.S.

As of December 31, 2023, we employed approximately 250 sales, marketing, business development and client management professionals, with the majority of these employees based in either the U.S.

Our professionals generally have significant experience in consulting, analytics, digital operations and solutions services and digital technology within our focus industries.

EXL generated revenues from approximately 560 clients and 550 clients in 2023 and 2022, respectively (with annual revenue exceeding $50,000 per client).

We have won 59 and 58 new clients during 2022 and 2021, respectively.

We won 63 and 59 new clients during 2023 and 2022, respectively.

Our top three, five and ten clients generated 16.4%, 22.9% and 34.0% of our revenues, respectively, in 2023.

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No client accounted for more than 10% of our total revenues in 2023 or 2022.

Our revenue concentration with our top clients has reduced year-over-year as we continue to develop relationships with new clients to diversify our client base.

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.

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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 digital operations and solutions other than consulting, we generally enter into long-term agreements with our clients with typical initial terms of between three to five years.

For digital operations and solutions other than consulting, we generally enter into long-term agreements with our clients with typical initial terms between three to five years.

Consulting engagements have typical terms of six to twelve months.

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Competition in the data analytics and digital operations and solutions industry is intense and growing.

See Part I, Item 1A, “Risk Factors” under “Risks Related to Our Business-We face competition from U.S.-based and non-U.S.-based BPM and IT companies and from our clients, who may build shared services centers to perform digital operations and solutions and analytics services themselves, either in-house or other arrangements.” Many companies, including certain of our clients, choose to perform some or all of their front-, middle- and back-office analytics and processes internally, utilizing their own employees and digital applications to provide these services as part of their regular business operations.

See Part I, Item 1A, “Risk Factors” under “Risks Related to Our Business––We face competition globally from other providers and from our clients, who may build shared services centers to perform digital operations and solutions and analytics services themselves, either in-house or other arrangements.” Many companies, including certain of our clients, choose to perform some or all of their front-, middle- and back-office analytics and processes internally, utilizing their own employees and digital applications to provide these services as part of their regular business operations.

We believe our key advantage over in-house business processes and analytics management is our ability to orchestrate relevant domain, data, digital, advanced analytics and human design expertise to enable delivery of sustainable outcomes that allow companies to focus on their customers, core products and markets.

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• leading accounting and management consulting firms.

strong client relationships, leading industry talent, superior process capabilities and differentiated technology, which enable us to respond rapidly to market trends and the evolving needs of our clients.

We compete against these entities by working to differentiate ourselves as a strategic partner for businesses with deep industry expertise, sophisticated data and analytics capabilities, innovative digital operations and solutions and technology strong client relationships, leading industry talent, superior process capabilities and differentiated technology, which enable us to respond rapidly to market trends and the evolving needs of our clients.

Intellectual Property

Our intellectual property consists of proprietary platforms, software, data sets, models, processes, algorithms, methodologies and know-how, as well as our name and marks, among other assets.

Our intellectual property consists of proprietary platforms, software, data, databases, models, methodologies, know-how, names, designs, domains, user interfaces, applications and operating procedures among other materials.

We consider many of our business processes and implementation methodologies to be trade secrets or proprietary know-how and confidential information.

We seek to protect our intellectual property through a combination of patent, trademark, copyright and trade secret laws, confidentiality procedures and contractual provisions.

We seek to protect our intellectual property through a combination of patent, trademark, copyright and trade secret laws, as well as through confidentiality procedures and contractual provisions.

Clients and business partners typically agree in writing to confidential treatment of our information.

Our employees and independent contractors are required to sign work-for-hire agreements containing confidentiality covenants as a condition to their employment and engagement, respectively.

We also have policies requiring our associates to respect the intellectual property rights of others.

The solutions we offer our clients often include our software, data and other intellectual property assets developed by our technology group, combined with software and data licensed by us or clients from third parties.

We also leverage several strategic partnerships with third parties to facilitate our solution offerings to clients, including, among others, robotics and process automation software companies and a financing platform provider.

We also have policies requiring our employees, independent contractors, and associates to respect the intellectual property rights of others, including obtaining appropriate licenses when using, selling or distributing third-party materials.

The solutions we offer our clients often include our software, data and other intellectual property assets developed by our data scientists and engineers, combined with software and data licensed by us or by clients from third parties.

We also leverage strategic partnerships with third parties to facilitate our solution offerings to clients, including, among others, robotics and process automation software providers, financing platform providers, and AI solutions providers.

We typically retain ownership of any pre-existing proprietary intellectual property assets, including modifications or enhancements to such pre-existing proprietary assets developed while providing client services.

While working on client engagements, we also often develop new tools, methodologies and models, including robotics and process automation software, or “bots,” AI and ML capabilities.

We endeavor to negotiate contracts that give us ownership or broad licenses to use, develop, demonstrate and offer such tools for other clients.

Independently or while working on client engagements, we also often develop new tools, methodologies and models, including AI and ML models that can be leveraged for various use cases.

We endeavor to negotiate contracts that give us ownership or broad licenses to use, develop, demonstrate and offer such newly developed intellectual property assets to or for other clients.

We operate in a highly competitive and rapidly evolving global market.

We seek to continue providing value to our clients with our deep domain expertise, ability to advise clients on how to transform their processes and deliver transformation that drives business value, ability to provide innovative services and solutions, including digital offerings that incorporate AI and ML capabilities, and our ability to continuously improve processes and consistently add value through digital transformation.

We seek to continue providing value to our clients with our deep industry knowledge, ability to advise clients on how to transform their processes and deliver transformation that drives business value, and ability to provide innovative services and solutions, including digital offerings

that incorporate AI and ML capabilities.

We also rely on our reputation, client references, ability to sustain long-term client relationships, as well as our global reach and scale, and competitive pricing to maintain our competitiveness in our industry.

While our proprietary intellectual property assets are important to our business, we believe our company as a whole is not materially dependent on any particular intellectual property, other than our EXL brand.

We have a registered, and have applied for the registration of, numerous U.S.

and international trademarks, service marks, and domain names to protect our brands, including our EXL brand, which is one of our most valuable assets.

Information Security and Data Privacy

We maintain a comprehensive program that focuses on information security and cyber security, data privacy and the protection of our clients’ confidential personal and sensitive information.

We have invested in strengthening our cyber security posture and protocols to enable compliance with our contractual obligations and the regulations governing our activities.

These investments include people, processes and technology intended to protect information throughout the business life cycle.

Cyber security is managed by our cross-functional cyber security apex body, the Management Security, Continuity and Privacy Forum, which is comprised of representatives from our management, business unit heads, and our technology and information security leadership teams.

The Audit Committee of our board of directors has primary oversight and receives briefings throughout the year on cyber security-related risks, vulnerabilities and strategic policies and practices from management.

At least once a year, our full board receives a report from management on the Company’s readiness and capability to reduce the risk of, detect and respond to a cyber-attack.

Our cyber security strategy aims to build a cyber-resilient organization and focuses on implementing and operating cyber security capabilities to identify, protect, detect, respond and recover from cyber threats and events;

our cyber security capabilities are also designed to enable us to mitigate vulnerabilities and minimize the impact of cyber incidents if they occur.

We emphasize institutional governance built on, and supported by, policies and processes, tools and technologies and knowledge and awareness training.

We take into account guidelines 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 policies and controls regarding security of sensitive and confidential information of our clients, employee, partners, third parties, as well as our intellectual property and confidential information.

We have undertaken measures designed to comply with all applicable privacy laws and regulations, including the European General Data Protection Regulation (EU) 2016/679 (“GDPR”), the U.S.

Health Insurance Portability and Accountability Act of 1996, as amended, the California Consumer Privacy Act (“CCPA”), the California Privacy Rights Act (the “CPRA”), the Virginia Consumer Data Protection Act (“VCDPA”), the Colorado Privacy Act (“CPA”), 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 where 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.

The required 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.

We also engage third parties to periodically conduct vulnerability assessment and penetration testing of its technology environment.

For disaster recovery purposes, many of our key technology systems are hosted in ISO 27001 certified, SSAE18 SOC1 compliant Tier 4 data centers that are proactively monitored and managed 24 hours a day.

In 2021, we conducted an external security readiness review of our approach to remote work and strengthened the environment further.

In 2022, we conducted an assessment of the effectiveness of our cyber security capabilities with an independent consulting firm to align with the evolving threat landscape.

In March 2020, as a result of COVID-19 and the implementation of our business continuity plans, a significant portion of our employees began to provide services from their homes, or other remote locations.

Under our new hybrid and remote working models, many of our employees will continue to provide services from their home or other remote locations.

We augmented our control environment to meet this business requirement.

These augmented controls include enhancing endpoint security capabilities and strong encryption, and a secure virtual private network to access EXL or client application from these global locations.

As we were unable to replicate physical controls in place at our delivery centers, we agreed with our clients to implement certain additional logical information security controls on the technology and computers issued by EXL and used by our employees while working from home, including browsers, peripherals and operating systems restrictions, as well additional monitoring from our Cyber Defense Operations Center.

All employees providing services from home are required to agree to an undertaking of their compliance with our Telecommuter Policy.

However, we continue to face certain risks related to cyber security threats in general including in connection with our hybrid and remote working models.

See Part I, Item 1A, “Risk Factors” under “Risks Related to Our Business-We are vulnerable to natural disasters, technical disruptions, pandemics and societally created events that could severely disrupt the normal operation of our business and if our risk management, business continuity and disaster recovery plans are not effective, it may adversely affect our business, results of operations, financial condition and cash flows” and under “Risks Related to Our Business-Unauthorized disclosure of sensitive or confidential client and employee data, whether through breach of our computer systems or otherwise, could cause us significant reputational damage, expose us to protracted and costly litigation, and cause us to lose clients.”

We have procured from leading global 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 locations, redundancy network infrastructure, power sources and other utilities to mitigate and manage operational risks as well as trained talent across our service delivery locations.

These plans are documented, as well as tested on a periodic basis.

We have adopted a cloud-first strategy for delivering business and enterprise technology services and have developed a Unified Cloud Infrastructure that addresses requirements across our diverse businesses leveraging public cloud services.

This infrastructure spans across a multi-cloud environment for data and digital led business solutions and are covered with globally established service level agreements and best practices.

We have deployed additional controls to create visibility around the cloud environment.

While our proprietary intellectual property assets are important to our business, we believe EXL as a whole is not materially dependent on any particular intellectual property, other than our EXL brand.

Our intellectual property portfolio is comprised of patents, trademarks, copyrights, and domain names to protect our brands, including our EXL brand, which is one of our most valuable assets.

Human Capital Management

At EXL, our culture is defined by our five core values:

innovation, collaboration, excellence, integrity and mutual respect.

In line with these values, we consider our employees to be critical to the success of our business and view employee development and growth as key to our performance and sustainability.

As of December 31, 2022, we had a headcount of approximately 45,400 employees.

We had approximately 30,000 employees based in India, 9,800 employees in the Philippines, 2,700 employees in the United States, 2,900 employees in South Africa and other geographies.

Less than 1% of our total workforce, comprised of our employees based in Romania, is covered by collective bargaining agreements, as required by Romanian law.

We have never experienced any work stoppages and believe that we enjoy good employee relations.

At EXL, our organizational ethos is distinctly shaped by five core values:

innovation, collaboration, excellence, integrity and respect.

In line with our core values, we recognize our workforce’s pivotal role in driving our success.

We prioritize the ongoing development and progression of our employees, because we believe it to be critical to our sustained performance and longevity.

As of December 31, 2023, our team is approximately 54,000 strong, with more than 50 offices spanning across six continents.

This encompasses approximately 34,900 employees located in India, 10,700 in the Philippines, 2,600 in the United States, 4,300 in South Africa and 1,500 employees are based in other locations in which we operate.

As part of our expansion into Ireland in 2023, we formed a new collaboration with University College Dublin, one of Europe’s leading research-intensive universities, as part of the Irish government’s Human Capital Initiative, which aims to strengthen ties between higher education and enterprises to address future skills needs.

To date, our operations have remained uninterrupted by labor-related issues, a testament to our favorable employee relations within our organization.

Diversity, Equity and Inclusion

Our diversity, equity and inclusion 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.

Our diversity, equity and inclusion philosophy aims to create a fair and inclusive work environment that harnesses the power of diversity to drive organizational success.

We recognize that the world we live and work in is diverse and fueled by innovation.

To thrive in this environment, we foster a culture that values diverse perspectives, embraces differences and promotes leadership opportunities in a way that reflects the communities in which we operate.

We consider diversity, equity and inclusion to be a key factor in our recruiting and retention goals and overall business growth strategy.

As of December 31, 2022, of the United States reporting workforce, approximately 48.7% were racially/ethnically diverse individuals.

As of December 31, 2022, our global workforce was approximately 41.2% female, with 18,700 women employees globally.

As of December 31, 2023, our United States reporting workforce comprised approximately 16.2% underrepresented minorities and our global workforce was approximately 43% women.

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

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We provide trainings to our employees on topics aimed at improving diversity, equity and inclusion, such as managing unconscious bias, and have formed employee resource groups for select employee communities that are aimed at supporting diverse groups and interests.

For our female employees, EXL has several programs to promote career advancement, including leadership development for women at the mid- to senior- levels, 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.

We launched a women’s leadership certificate program in collaboration with Cornell University for our women Vice Presidents and above.

The program focuses on strengthening digital, leadership and finance skills, as well as presence and communications acumen.

EXL has several programs to promote career advancement for women, including leadership development for women at the mid- to senior- levels, 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.

We believe that maintaining diversity in our leadership is one of the most important gateways to build an inclusive business.

In recent years, we have placed a special focus on women leadership development from mid to senior levels through actively developing women leaders.

We also rigorously track attrition risks of women at the rank of Vice President and above and work at minimizing attrition through diversity, equity and inclusion initiatives and benefits.

We actively work to foster the representation of underrepresented groups as well as promoting the inclusion of lesbian, gay, bisexual, transgender, and queer (or questioning) (“LGBTQ+”) employees at all levels of the organization.

In addition to EXL’s employee resource groups, in 2022 we launched “The Umbrella Project,” a program for allyship and inclusion alongside our LGBTQ+ colleagues.

In addition to EXL’s employee resource groups, we maintain “The Umbrella Project,” an initiative for allyship and inclusion alongside our LGBTQ+ colleagues.

We maintain a supplier diversity program in the United States designed to provide opportunities for qualified diverse businesses.

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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 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, which include incentive-based compensation.

Our talent strategy is a key driver for EXL’s long-term business strategy of turning data into a sustainable competitive advantage for our clients.

To deliver on this complex work, we focus on identifying the critical skills and roles necessary to our business so that we can attract and retain the talent needed.

We leverage shared resources across our services through personnel who have skill sets applicable to a wide variety of data, digital, cloud and AI/ML services.

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We focus on recruiting, training and retaining our professionals.

Our talent acquisition strategy framework revolves around a “Build, Acquire, and Partner” approach.

We have developed effective strategies that enable an efficient recruitment process.

The recruitment and training process evolved to an online model in 2020, which we have since adopted as our permanent model.

We have over 200 employees dedicated to recruitment.

Some of the strategies we have adopted to increase efficiency in our hiring practices include AI/ML-based intelligent screening mechanisms, remotely proctored online techniques and automated trainings.

Our hiring policies focus on identifying high-quality employees who demonstrate a propensity for learning, contribution to client services and growth.

In certain circumstances, we use an AI-driven infrastructure to enable our human resources function anticipate and find critical talent when and where we need them.

Candidates must undergo numerous tests and video 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.

We have adopted a hybrid working model, which we refer to as our “future operating model,” that provides our employees with a degree of additional flexibility.

We continue to use and improve digital-first and multi-channel approaches to keep our employees across the globe informed and engaged and moved from an enterprise-centric approach to human capital management to one that is employee-centric.

Employee Benefits and Experience

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 located within some of our operations centers.

Since 2020, we have implemented several new measures to support our employees while working remotely, including regular virtual Company-wide town hall meetings, as well as promoting smaller virtual video-based team building activities, and an employee wellness program, led by specialists such as counselors, physicians and fitness instructors.

In addition, we maintain several geographic specific employee health and wellness offerings, including an internal helpline with a central information hub for resource availability, enhanced insurance coverage including parental insurance for our employees in India, among others.

Capability Development

We maintain a strong focus on capability development, with an emphasis on digital transformation and domain expertise.

We continue to promote opportunities for large-scale upskilling and reskilling of our employees, while also fostering a learning environment conducive to individual skill-building and career advancement.

In 2022, we implemented a fundamental shift in our capability development approach, transitioning from a corporate-driven model to an ecosystem of democratized self-learning, where our employees have access to our digital learning ecosystem.

This enables our employees self-driven learning and growth experiences based on their personal goals and skills by using AI to anticipate and build market-relevant skills and capabilities, curated libraries and intelligent web-sourced content.

Our employees are supplied with specialized learning pathways to build digital capabilities, skill mapping to direct them to courses as needed, chat groups where they can collaborate and discuss the latest trends, practice questions, practice labs for real-world and hands-on experience, supervisor dashboards and leaderboards, and learning on the go.

Our talent development strategy is comprehensive and aligned to EXL’s overall business strategy.

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We also provide a career-linked learning path to our employees from new hires to tenured employees to senior levels of leadership.

In 2022, we launched a new learning management system, which permits self-driven learning and growth experiences for our employees based on their personal goals and skills by using AI, curated libraries and intelligent web-sourced content.

Through this platform, our employees are supplied with specialized learning pathways to build digital capabilities, skill mapping to direct them to courses as needed, chat groups where they can collaborate and discuss the latest trends, practice questions, practice labs for real-world and hands-on experience, supervisor dashboards and leaderboards, and learning on the go.

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.

These include our Insurance Academy, Travel Academy, Finance and Accounting Academy, Healthcare Academy, Analytics Academy,

Utilities Academy, Consulting Academy, Sales Academy and Digital Academy.

These 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.

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We provide learning through our blended learning methodology comprising of virtual, classroom, on the job coaching and technology-led learning.

Our talent, training and development objectives focus on “addressing roles critical to strategy,” “placing the right people for the right roles,” “creating a future ready workforce” and “raising EXL’s baseline” by continuously building EXL-wide culture around a strong understanding of digital technologies.

Employee Retention

Our attrition rate for employees who had been with EXL for more than 180 days was 25.8% and 31.6% for the years ended December 31, 2023 and 2022, respectively.

The attrition rate in 2021 was lower than our historical average due to the lingering effects of COVID-19, and the attrition rate in 2022 increased from 2021 but remained lower than the historical average.

The attrition rate in 2023 decreased from 2022, which we believe reflects better employee engagement.

As competition in our industry increases, our turnover rate could increase.

See Part I, Item 1A, “Risk Factors” under “Risks Related to Our Business––We may fail to attract and retain enough sufficiently trained employees to support our operations or professionals with sufficient leadership capabilities, which may result in loss of revenue and an inability to expand our business” and “Employee wage increases may prevent us from sustaining our competitive advantage and may reduce our profit margin.”

Environmental, Social and Governance Strategy

Sustainability Strategy

The world we work and live in is powered by innovation.

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These initiatives reflect our core values and will make us a stronger, more impactful organization to work for and allow us to deliver exceptional results for our clients, employees, communities and stockholders.

Our most recent Sustainability Report is available on the Company’s website.

The information contained on the Company’s website is not included in, or incorporated by reference into, this Annual Report on Form 10-K.

Our most recent Sustainability Report is available on our website.

The information contained on our website is not included in, or incorporated by reference into, this Annual Report on Form 10-K.

Community Activities

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This skill development initiative provides participants from communities in which we operate in the United States, the United Kingdom, the Philippines, India and South Africa with market-relevant skills for the digital economy.

In 2022, we added a coding skills focus to the Skills to Win Initiative, aimed at elevating women and non-binary members of our communities in technology.

In 2022, we added a coding skills focus to the Skills to Win Initiative, aimed at elevating women and non-binary members of our communities in technology in the United Kingdom, the United States and South Africa, which was further expanded to the Philippines and India in 2023.

• Education as a Foundation Initiative:

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We have also established Company-wide and worksite-specific workplace safety objectives that are integrated into our EHS Management System.

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 our employees, contractors, customers, visitors and the communities where we operate.

In addition, we seek to maintain a responsible supply chain by stating our expectations for all our vendors in our Supplier Standards of Conduct and by collecting information from our new suppliers with respect to policies and performance on human rights, labor rights and environmental issues.

We maintain safety measures related to COVID-19, such as chartering a senior management-led Pandemic Management Task Force that is charged with ensuring the safety of our employees and adherence to government guidelines in each of the geographies where we operate, publishing guidelines for our employees on quarantine protocols and, where applicable, enhanced testing and tracking measures for those of our employees who are unable to work remotely due to the nature of their jobs.

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 our employees, contractors, customers, visitors and the communities in which we operate.

In addition, we seek to maintain a responsible supply chain by stating our expectations for all our vendors in our Supplier Standards of Conduct

and by collecting information from our new suppliers with respect to policies and performance on human rights, labor rights and environmental issues.

All our delivery centers worldwide are currently ISO 45001:2018 certified, meeting international standards for occupational health and safety, and ISO 14001:2015 certified, meeting international standards for effective environmental management systems.

After receiving the COVID-19 assurance statement from the British Safety Council for all of our delivery centers worldwide in 2021 for having appropriate health and safety protocols in place for the return to work of our employees, we partnered further with the British Safety Council in 2022 to undergo the Five Star Occupational Health and Safety audit at all of our locations.

In 2023, we received a five star rating from the British Safety Council for best practices in occupational safety for our operations centers in the United Kingdom and India.

While we expect to maintain these certifications and standards, there may be changes to our delivery centers or applicable rules or standards that could affect such certifications and standards.

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More often, however, our clients contractually require that we comply with certain rules and regulations applicable to us in delivering our services to them.

We provide third-party administrator insurance services from India and the Philippines and are currently able to provide these services in the United States for 49 states and 48 states (and the District of Columbia), respectively by location.

We provide third-party administrator insurance services from India and the Philippines and are currently able to provide these services in the United States for 49 states (and the District of Columbia) and 48 states (and the District of Columbia), respectively by location.

Additionally, our subsidiary in the Philippines is able to provide utilization review services in the United States for 48 states (and 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 United States, as well as utilization review, claims adjuster and insurance producer services in select states.

We 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, claims adjuster, mortgage loan processing and underwriting and telemarketing services.

We maintain licenses in various jurisdictions (or require certain categories of our professionals to be individually licensed, as applicable) in service areas such as debt collection, utilization review, workers’ compensation utilization review, claims adjuster, mortgage loan processing and underwriting 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), the 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.

See Part I, Item 1A, “Risk Factors” under “Risks Related to Our Business-Failure to adhere to the regulations or accreditation or licensing standards that govern our business could have an adverse impact on our operations,” and under “General Risk Factors-Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, and violations of these regulations could harm our business.”

We benefit from tax relief provided by laws and regulations in various geographies where we operate.

Pursuant to laws and regulations in the Philippines, we currently benefit from certain corporate tax holidays for our operations located in qualified Philippines Economic Zone Authority units.

During 2022, the Philippines Fiscal Incentives Review Board issued guidelines clarifying work-from-home requirements in order for companies to continue to obtain tax holidays.

We are managing our business in accordance with the guidelines to continue availing ourselves of the tax holidays.

See Part I, Item 1A, “Risk Factors” under “Risks Related to the International Nature of Our Business-Our financial condition could be negatively affected if governments in the countries we operate in introduces new unfavorable tax legislation.”

COVID–19 Global Pandemic

The COVID-19 pandemic continues to cause global economic disruption and uncertainty, which affects our business.

The global economic disruption of this pandemic has led to adoption of more resilient operating models for our business operations and by our customers and suppliers.

The extent to which COVID-19 impacts our future business, strategic initiatives, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration, spread, severity and resurgence of COVID-19, the effects of COVID-19 on our clients, employees, contractors, suppliers and business partners and the remedial actions and stimulus measures adopted by local and federal governments, and to what extent normal economic and operating conditions can resume.

We will continue to evaluate the nature and scope of the impact to our business and may take further actions strategizing our business operations and managing our costs and liquidity that we deem necessary or appropriate to respond to this evolving and uncertain global health crisis and the resulting global economic consequences.

For a further discussion of the risks, uncertainties and actions taken in response to COVID-19, see Part I, Item 1A, “Risk Factors” and Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations.”

Our operations are also subject to compliance with a variety of other laws, including tax laws in the countries where we conduct our business.

See Part I, Item 1A, “Risk Factors” under “Risks Related to the International Nature of Our Business––Our global operations expose us to numerous and sometimes conflicting legal and regulatory requirements, including, accreditation or licensing standards that govern our business, and violations of these requirements could harm our business.”

We currently benefit from certain corporate tax holidays for our operations located in qualified Philippines Economic Zone Authority units.

We are managing our business in accordance with the guidelines issued in 2022 by the Philippines Fiscal Incentives Review Board to continue availing the tax holidays.

We have established a headquarters for international business in Dublin, Ireland, and qualify for a reduced tax rate subject to certain conditions.

We continuously monitor our operations to ensure we continue to qualify for the reduced rate.

We currently operate in the Philippines and Ireland where we will be subject to a minimum tax rate pursuant to the Pillar Two Framework prescribed by Organization for Economic Co-operation and Development (“OECD”).

The OECD continues to release additional guidance on the Pillar Two Framework, with implementation generally effective for 2024.

We will continue to evaluate any potential impact on our operations.

See Part I, Item 1A, “Risk Factors” under “Risks Related to the International Nature of Our Business––Our financial condition could be negatively affected if governments in the countries we operate in introduce new unfavorable tax legislation, including legal restrictions for repatriation of our earnings.”

Available Information

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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 also maintain a website at http://ir.exlservice.com.

Information on our website does not constitute a part of, nor is it incorporated in any way, into this Annual Report on 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, ESG efforts, corporate governance information, and other news and announcements that investors might find useful or interesting.

Our website also includes announcements of investor conferences and events, information on our business strategies and results, sustainability efforts, corporate governance information, and other news and announcements that investors might find useful or interesting.

In this Annual Report on Form 10-K, we use the terms “EXL,” “we,” “us,” “our” or the “Company” to refer to ExlService Holdings, Inc.

and its subsidiaries.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business