ExlService Holdings, Inc. (EXL) operates as a data analytics and digital operations and solutions company.
The company partners 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...
ExlService Holdings, Inc. (EXL) operates as a data analytics and digital operations and solutions company.
The company partners 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.
The company delivers data analytics and digital operations and solutions to the company’s clients, driving enterprise-scale business transformation initiatives that leverage the company’s deep expertise in advanced analytics, AI, generative AI and cloud technology. The company continues to evolve its offerings to drive business outcomes through advanced analytics and AI-powered solutions on the cloud. The company’s data and AI-led value creation framework enables better and faster decision making, leveraging the company’s 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. The company embed digital operations and solutions into clients’ businesses and introduce the company’s data and AI-led approach to transform operations with every new engagement, which helps the company’s clients achieve better customer experience, higher productivity, and improved business outcomes.
The company operates through its four reportable segments or strategic business units: Insurance, Healthcare, Analytics and Emerging Business. The company’s strategic business units align its products and services with how the company manages its business, approach the company’s key markets and interact with the company’s clients. These business units develop client-specific solutions, build capabilities, maintain a unified go-to-market approach and are integrally responsible for service delivery, customer satisfaction, growth and profitability. By integrating data and analytics directly into the company’s client workflows, the company drives more intelligence into its clients’ increasingly digital operations that drive superior customer outcomes, optimize costs and power resilient and agile business models.
Digital Operations and Solutions
The company’s digital operations and solutions, which the company deploys for its clients from its Insurance, Healthcare and Emerging Business strategic business units, are focused on solving complex industry challenges. The company uses a focused industry vertical approach, and its solutions are designed to help the company’s clients realize their business and innovation goals and improve their strategic competitive position.
Some of the company’s 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 the company’s 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 the company’s clients’ operations that the company has 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. The company either manages and digitally transforms these operations for its clients by deploying the company’s solutions through a software-as-a-service (‘SaaS’) model via the company’s 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 the company to drive data and technology-led transformation for the company’s 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 the company’s key solutions are:
Generative AI platform for the development and deployment of the company’s 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 the company’s proprietary workflow solutions.
The company uses AI, data, and cloud technology, including its suite of solutions and accelerators, in a standardized, reusable and shared engineering and delivery infrastructure, enabling the company to leverage its investments across multiple clients.
The company’s strategic business units, through which the company provides digital operations and solutions, are described below:
The company’s Insurance strategic business unit serves property and casualty insurance, life insurance, disability insurance, insurance brokers, reinsurers, annuity and retirement services and insurtech companies. The company provides 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. The company provides end-to-end third-party administration for life and annuity insurance policies, which includes digital customer acquisition services using a SaaS delivery model through the company’s LifePRO and Life Digital Suite platforms that help clients administer life insurance, annuities and credit life and disability insurance policies. The company also provides subrogation services to property and casualty insurers using a business process-as-a-service delivery model and the company’s 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. The company provides 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. The company brings a data and AI-led and practical digital approach to finance and accounting, enabling the company’s 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 the company’s clients’ businesses.
The company’s Healthcare strategic business unit primarily serves the U.S.-based healthcare payers, providers and pharmacy benefit managers organizations. The company combines deep healthcare domain expertise with data and AI-led insights and technology-enabled services to transform how care is delivered, managed and paid. The company provides 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.
The company offers digital operations, SaaS and platform services designed to serve the healthcare industry. The company’s integrated care management offering, including the company’s 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. The company’s 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 the company’s Insurance strategic business unit, the company also provides finance and accounting services, digital transformation and advisory/consulting services for the company’s clients in the healthcare industry.
The company’s 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 the company’s domain-specific industry solutions enabling the company’s clients to deliver superior performance.
The company’s 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. The company’s Digital Finance Suite, which is powered by the company’s 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.
The company’s client experience management solutions that run on its proprietary EXL CONNECX platform, help the company’s 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, the company combines its deep industry knowledge with advanced analytics and digital capabilities, including robotics, proprietary and partner-driven AI and ML solutions.
The company’s 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 the company’s clients’ business.
The company also provides industry-specific digital operations and solutions. For the company’s clients in the banking and financial services sector, the company provides 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, the company provides supply chain management services and analytical services including merchandising, pricing and demand forecasting. For the company’s clients in the utilities sector, the company offers 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, the company manages media and advertising reconciliations, order entry, fulfillment and licensing management operations. For the company’s clients in the travel and leisure sector, the company provides corporate and leisure travel services, including reservations, customer service and fulfilment services. In the transportation and logistics sector, the company provides its clients with freight billing, collections, claims management, freight audit, freight scheduling, supply chain management and revenue assurance services.
Analytics
The company’s Analytics strategic business unit helps clients build data-led businesses using AI, generative AI, advanced analytics solutions and services, and cloud technology. By leveraging the company’s suite of end-to-end analytics capabilities, the company intends to drive better business outcomes for the company’s clients by unlocking deep insights from data and creating data and AI-led solutions across all parts of clients’ businesses.
The company’s 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.
The company enhances, modernizes and enriches structured and unstructured data and uses a spectrum of advanced analytical tools and techniques, including the company’s in-house and third-party AI, generative AI, and ML capabilities and proprietary solutions, to create insights, improve decision making for the company’s 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;
Solutions for risk models, stress testing, Basel risk-weighted assets, reserves, and economic capital calculation;
ML models for fraud monitoring, loss mitigation, and implementation and execution of fraud strategies;
Enhanced decision-making in underwriting, claims processing and policy renewal through cognitive image analytics; and
Payment integrity services in the U.S. healthcare industry ensuring accurate reimbursement and help prevent fraud, denials, and revenue leakage.
The company’s Analytics team is consisted of approximately 9,100 professionals, including data scientists, data architects, business analysts, statisticians, modelers and industry domain specialists.
The company helps its 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. The company’s Analytics services for its clients include:
Identification, cleansing, matching and use of structured, semi-structured and unstructured data, available internally to the company’s client’s organization and also externally;
Integration of data insights and predictive models into real-time, decision-making processes to drive measurable business impact;
Design and implementation of services that enable data visualization and management reporting enabling business users to segment, drill down, and filter data;
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; and
Harnessing the power of AI, including generative AI to elevate decision-making paradigms, enabling the company’s clients to achieve a sustainable competitive advantage amid rapid technological innovation.
The company’s Analytics engagements span both project work and longer-term arrangements where the company provides ongoing analytics modeling and services for a year or longer. The company utilizes its deep industry knowledge to drive these engagements across the company’s various competencies, including data management and cloud enablement, AI, generative AI, ML, advanced analytics and insights, data-enabled marketing solutions and strategic data assets.
The company’s 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, 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 and consumer packaged goods, media and telecom and utilities and manufacturing industries.
The company has seen a significant acceleration in the shift to digital and cloud-based solutions across all the company’s 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 the company’s clients’ needs for a suite of cloud migration and enablement capabilities.
The company expects the trend in increased demand for analytics solutions to continue, and to capture these new opportunities, the company has built a scalable and customizable multi-cloud cross-sector generative AI platform with pre-built accelerators and packaged solutions. The company’s 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.
The company’s EXLClarity platform supports risk adjustment and quality management for payers and providers and helps to optimize their revenue. The company’s payment services support payment integrity and maximize performance and financial-related results by leveraging the company’s 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. The company’s EXLVantage 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.
The company offers 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. The company continues to strengthen its expertise in data and product engineering, ML operations, cloud enablement and managed services. The company has expanded its footprint within its 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 the company’s 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 and AI-led businesses. The company reinvents business models, drives better business outcomes and unlocks growth with speed for the company’s clients through advanced analytics and AI -powered digital solutions on the cloud. The company does this through its data and AI-led value creation framework to enable better and faster decision making, leveraging the company’s end-to-end data and analytics capabilities to drive improved business outcomes, and the company re-designs operating models to integrate advanced technology into operational workflows.
Some of the company’s strategically focused considerations include expanding the company’s services in large addressable markets, integrating the company’s data and ai-led and domain capabilities, cultivating long-term relationships and expanding the company’s client base, optimizing the company’s global delivery footprint and operational infrastructure in the countries and regions where the company operates, and pursuing strategic acquisitions and relationships.
Industry
Digital Operations and Solutions
As a provider of digital operations and solutions, the company works with clients to execute enterprise-scale business transformation initiatives that enable improved customer experience, revenue growth, operational efficiency and reduced risk. The company’s asset-based operations services combine the industry-specific knowledge of the company’s 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 to help streamline manual, labor-intensive workflows and improve end-customer engagement and experience, and 3) implementing AI/ML-powered operating models that help the company’s clients transition from legacy business operations and get to value faster.
Data Analytics
As a provider of advanced analytics, AI and data services, the company helps companies access and deliver real-time data and insights at multiple points in their overall workflows so that all parts of the organization are working from the same data pool. 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.
By leveraging the company’s end-to-end service offerings, the company develops industry-specific AI and advanced analytics solutions and generates data insights, which makes the company well-positioned to benefit from this global trend.
Sales, Marketing and Client Management
The company markets its services to its existing and prospective clients through the company’s sales and client management teams, which are aligned by industry verticals and cross-industry domains such as digital solutions, finance and accounting and consulting. The company’s sales and client management teams operate from the U.S., Europe, Australia and South Africa are supported by the company’s business development teams.
The company’s 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, 2023, the company employed approximately 250 sales, marketing, business development and client management professionals, with the majority of these employees based in either the U.S. or India. The company’s professionals generally have significant experience in consulting, analytics, digital operations and solutions services and digital technology within the company’s focus industries.
Clients
EXL generated revenues from approximately 560 clients in 2023. The company won 63 new clients during 2023.
The company’s long-term relationships with its 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, the company generally enters into long-term agreements with the company’s clients with typical initial terms between three to five years. Consulting engagements have typical terms of six to twelve months. Agreements for the company’s 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
The company competes primarily against large global companies with digital operations and solutions and operations capabilities, such as Accenture, Cognizant Technology Solutions, Genpact Limited, IBM, Infosys, NTT DATA, Tata Consultancy Services, and WNS (Holdings); and niche industry-specific digital operations and solutions providers such as Cotiviti and Optum Health.
Intellectual Property
While the company’s proprietary intellectual property assets are important to its business, EXL as a whole is not materially dependent on any particular intellectual property, other than the company’s EXL brand.
Regulation
The company provides third-party administrator insurance services from India and the Philippines and is 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, the company’s 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, the company is 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. The company maintains licenses in various jurisdictions (or require certain categories of the company’s 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. The company’s 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.
The company benefits from certain corporate tax holidays for its operations located in qualified Philippines Economic Zone Authority units. The company is managing its business in accordance with the guidelines issued in 2022 by the Philippines Fiscal Incentives Review Board to continue availing the tax holidays.
History
ExlService Holdings, Inc. was founded in 1999. The company was incorporated in Delaware in 2002.
