ExlService (EXLS) 10-Q 27 Jul 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Jul. 25, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-33089
Entity Registrant Name	EXLSERVICE HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-0572194
Entity Address, Address Line One	320 Park Avenue,
Entity Address, Address Line Two	29th Floor,
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	212
Local Phone Number	277-7100
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	EXLS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		33,144,409
Entity Central Index Key	0001297989
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 93,960	$ 118,669
Short-term investments	156,098	179,027
Restricted cash	4,628	4,897
Accounts receivable, net	288,305	259,222
Other current assets	70,186	50,979
Total current assets	613,177	612,794
Property and equipment, net	93,688	82,828
Operating lease right-of-use assets	58,423	55,347
Restricted cash	2,072	2,055
Deferred tax assets, net	68,612	55,791
Intangible assets, net	56,487	64,819
Goodwill	405,903	405,637
Long-term investments	16,085	34,779
Other assets	48,255	32,069
Total assets	1,362,702	1,346,119
Current liabilities:
Accounts payable	3,019	7,789
Current portion of long-term borrowings	30,000	30,000
Deferred revenue	20,755	18,782
Accrued employee costs	82,044	108,100
Accrued expenses and other current liabilities	104,480	95,352
Current portion of operating lease liabilities	14,482	14,978
Income taxes payable, net	4,283	2,945
Total current liabilities	259,063	277,946
Long-term borrowings, less current portion	190,000	220,000
Operating lease liabilities, less current portion	50,575	48,155
Deferred tax liabilities, net	507	547
Other non-current liabilities	28,343	41,292
Total liabilities	528,488	587,940
ExlService Holdings, Inc. Stockholders’ equity:
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued	0	0
Common stock, $0.001 par value; 100,000,000 shares authorized, 40,349,727 shares issued and 33,152,670 shares outstanding as of June 30, 2023 and 39,987,976 shares issued and 33,234,444 shares outstanding as of December 31, 2022	40	40
Additional paid-in capital	472,124	445,108
Retained earnings	999,504	899,105
Accumulated other comprehensive loss	(124,147)	(144,143)
Total including shares held in treasury	1,347,521	1,200,110
Less: 7,197,057 shares as of June 30, 2023 and 6,753,532 shares as of December 31, 2022, held in treasury, at cost	(513,307)	(441,931)
Total stockholders’ equity	834,214	758,179
Total liabilities and stockholders’ equity	$ 1,362,702	$ 1,346,119

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	15,000,000	15,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	40,349,727	39,987,976
Common stock, outstanding (in shares)	33,152,670	33,234,444
Treasury stock, common (in shares)	7,197,057	6,753,532

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenues, net		$ 404,996	$ 346,782	$ 805,639	$ 675,990
Cost of revenues	[1]	253,220	221,207	504,689	428,723
Gross profit	[1]	151,776	125,575	300,950	247,267
Operating expenses:
General and administrative expenses		45,605	40,434	92,351	80,379
Selling and marketing expenses		28,238	23,985	57,731	48,155
Depreciation and amortization expense		13,122	14,075	26,609	27,677
Total operating expenses		86,965	78,494	176,691	156,211
Income from operations		64,811	47,081	124,259	91,056
Foreign exchange gain, net		324	1,423	429	3,179
Interest expense		(3,240)	(1,502)	(6,625)	(2,378)
Other income/(loss), net		2,661	(174)	5,816	2,237
Income before income tax expense and earnings from equity affiliates		64,556	46,828	123,879	94,094
Income tax expense		15,554	11,125	23,612	22,327
Income before earnings from equity affiliates		49,002	35,703	100,267	71,767
Gain from equity-method investment		66	143	132	257
Net income attributable to ExlService Holdings, Inc. stockholders		$ 49,068	$ 35,846	$ 100,399	$ 72,024
Earnings per share attributable to ExlService Holdings, Inc. stockholders:
Basic (in dollars per share)		$ 1.47	$ 1.07	$ 3.01	$ 2.15
Diluted (in dollars per share)		$ 1.46	$ 1.06	$ 2.97	$ 2.13
Weighted average number of shares used in computing earnings per share attributable to ExlService Holdings, Inc. stockholders:
Basic (in shares)		33,355,354	33,403,411	33,397,226	33,422,618
Diluted (in shares)		33,688,449	33,830,539	33,809,555	33,862,597
[1]Exclusive of depreciation and amortization expense.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income		$ 49,068	$ 35,846	$ 100,399	$ 72,024
Other comprehensive income/(loss):
Unrealized gain/(loss) on cash flow hedges		8,851	(14,632)	16,145	(15,149)
Foreign currency translation gain/(loss)		(136)	(22,782)	5,177	(30,227)
Reclassification adjustments
Gain on cash flow hedges	[1]	1,164	(1,459)	4,229	(3,448)
Retirement benefits	[2]	(23)	149	(48)	304
Income tax effects relating to above	[3]	(2,516)	3,656	(5,507)	4,620
Total other comprehensive income/(loss)		7,340	(35,068)	19,996	(43,900)
Total comprehensive income		$ 56,408	$ 778	$ 120,395	$ 28,124
[1]These are reclassified to net income and are included in cost of revenues, operating expenses and interest expense, as applicable in the unaudited consolidated statements of income. Refer to Note 17 - Derivatives and Hedge Accounting to the unaudited consolidated financial statements.[2]These are reclassified to net income and are included in other income/(loss), net in the unaudited consolidated statements of income. Refer to Note 20 - Employee Benefit Plans to the unaudited consolidated financial statements.[3]These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gain/(loss). Refer to Note 22 - Income Taxes to the unaudited consolidated financial statements.

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income/(loss)	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2021		39,508,340
Beginning balance at Dec. 31, 2021	$ 693,156	$ 40	$ 395,742	$ 756,137	$ (89,474)	$ (369,289)
Treasury stock, beginning balance (in shares) at Dec. 31, 2021						(6,216,858)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued against stock-based compensation plans (in shares)		286,821
Stock issued against stock-based compensation plans	0
Stock-based compensation	$ 24,564		24,564
Acquisition of treasury stock (in shares)	(427,049)					(454,268)
Acquisition of treasury stock	$ (60,191)					$ (60,191)
Other comprehensive income (loss)	(43,900)				(43,900)
Net income	72,024			72,024
Ending balance (in shares) at Jun. 30, 2022		39,795,161
Ending balance at Jun. 30, 2022	685,653	$ 40	420,306	828,161	(133,374)	$ (429,480)
Treasury stock, ending balance (in shares) at Jun. 30, 2022						(6,671,126)
Beginning balance (in shares) at Mar. 31, 2022		39,794,154
Beginning balance at Mar. 31, 2022	700,341	$ 40	406,966	792,315	(98,306)	$ (400,674)
Treasury stock, beginning balance (in shares) at Mar. 31, 2022						(6,465,410)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued against stock-based compensation plans (in shares)		1,007
Stock issued against stock-based compensation plans	0
Stock-based compensation	$ 13,340		13,340
Acquisition of treasury stock (in shares)	(205,716)					(205,716)
Acquisition of treasury stock	$ (28,806)					$ (28,806)
Other comprehensive income (loss)	(35,068)				(35,068)
Net income	35,846			35,846
Ending balance (in shares) at Jun. 30, 2022		39,795,161
Ending balance at Jun. 30, 2022	$ 685,653	$ 40	420,306	828,161	(133,374)	$ (429,480)
Treasury stock, ending balance (in shares) at Jun. 30, 2022						(6,671,126)
Beginning balance (in shares) at Dec. 31, 2022	33,234,444	39,987,976
Beginning balance at Dec. 31, 2022	$ 758,179	$ 40	445,108	899,105	(144,143)	$ (441,931)
Treasury stock, beginning balance (in shares) at Dec. 31, 2022	(6,753,532)					(6,753,532)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued against stock-based compensation plans (in shares)		361,751
Stock issued against stock-based compensation plans	$ 1,098		1,098
Stock-based compensation	$ 25,918		25,918
Acquisition of treasury stock (in shares)	(405,169)					(443,525)
Acquisition of treasury stock	$ (71,376)					$ (71,376)
Other comprehensive income (loss)	19,996				19,996
Net income	$ 100,399			100,399
Ending balance (in shares) at Jun. 30, 2023	33,152,670	40,349,727
Ending balance at Jun. 30, 2023	$ 834,214	$ 40	472,124	999,504	(124,147)	$ (513,307)
Treasury stock, ending balance (in shares) at Jun. 30, 2023	(7,197,057)					(7,197,057)
Beginning balance (in shares) at Mar. 31, 2023		40,334,368
Beginning balance at Mar. 31, 2023	$ 795,222	$ 40	460,527	950,436	(131,487)	$ (484,294)
Treasury stock, beginning balance (in shares) at Mar. 31, 2023						(7,012,913)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued against stock-based compensation plans (in shares)		15,359
Stock issued against stock-based compensation plans	86		86
Stock-based compensation	$ 11,511		11,511
Acquisition of treasury stock (in shares)	(184,144)					(184,144)
Acquisition of treasury stock	$ (29,013)					$ (29,013)
Other comprehensive income (loss)	7,340				7,340
Net income	$ 49,068			49,068
Ending balance (in shares) at Jun. 30, 2023	33,152,670	40,349,727
Ending balance at Jun. 30, 2023	$ 834,214	$ 40	$ 472,124	$ 999,504	$ (124,147)	$ (513,307)
Treasury stock, ending balance (in shares) at Jun. 30, 2023	(7,197,057)					(7,197,057)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 100,399	$ 72,024
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	26,464	27,739
Stock-based compensation expense	25,918	24,564
Amortization of operating lease right-of-use assets	10,332	12,005
Unrealized (gain)/loss on investments	7,222	(275)
Unrealized foreign currency exchange (gain)/loss, net	1,288	(10,280)
Deferred income tax benefit	(18,283)	(1,462)
Allowance for expected credit losses	479	170
Fair value changes in contingent consideration	0	1,000
Others, net	1,202	526
Change in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	(28,375)	(46,385)
Other current assets	(4,387)	2,861
Income taxes payable, net	(10,610)	8,684
Other assets	(12,772)	(6,584)
Accounts payable	(4,796)	(1,107)
Deferred revenue	5,380	4,276
Accrued employee costs	(24,331)	(34,016)
Accrued expenses and other liabilities	(742)	11,190
Operating lease liabilities	(10,829)	(11,922)
Net cash provided by operating activities	63,559	53,008
Cash flows from investing activities:
Purchases of property and equipment	(26,113)	(25,054)
Proceeds from sale of property and equipment	547	154
Business acquisition (net of cash and cash equivalents acquired)	0	(2,572)
Purchases of investments	(113,823)	(96,082)
Proceeds from redemption of investments	151,178	82,567
Net cash provided by/(used for) investing activities	11,789	(40,987)
Cash flows from financing activities:
Principal payments of finance lease liabilities	(80)	(75)
Proceeds from borrowings	70,000	35,000
Repayments of borrowings	(100,000)	(10,000)
Acquisition of treasury stock	(70,638)	(60,191)
Payment of contingent consideration	(5,000)	0
Proceeds from ESPP contribution	3,800	0
Proceeds from exercise of stock options	85	0
Net cash used for financing activities	(101,833)	(35,266)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,524	(5,365)
Net decrease in cash, cash equivalents and restricted cash	(24,961)	(28,610)
Cash, cash equivalents and restricted cash at the beginning of the period	125,621	143,810
Cash, cash equivalents and restricted cash at the end of the period	100,660	115,200
Cash paid during the period for:
Interest	6,914	2,694
Income taxes, net of refunds	53,299	14,301
Supplemental disclosure of non-cash investing and financing activities:
Assets acquired under finance lease	$ 91	$ 118

Organization

Organization	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the state of Delaware. ExlService Holdings, together with its subsidiaries and affiliates (collectively, the “Company”), 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 and machine learning, the Company creates agile, scalable solutions and executes complex operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media, and retail, among others. The Company’s data-led value creation framework enables better and faster decision making, leveraging its 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. The Company embeds digital operations and solutions into clients’ businesses and introduces its data led approach to transform operations. The Company’s clients are located principally in the United States of America (“U.S.”) and the United Kingdom (“U.K.”).

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies (a) Basis of Preparation and Principles of Consolidation The unaudited consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The unaudited consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intra-group balances and transactions, and gains and losses arising from intra-group transactions, are eliminated while preparing consolidated financial statements. The Company’s investments in equity affiliates are initially recorded at cost and any excess purchase consideration paid over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee after its acquisition is recognized in the unaudited consolidated statements of income. Accounting policies of the respective individual subsidiaries and equity affiliates are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under U.S. GAAP. (b) Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the unaudited consolidated financial statements include, but are not limited to, estimates of the fair value of the identifiable intangible assets and contingent consideration, purchase price allocation, including revenue projections and the discount rate applied within the discounted cash flow model for business acquisitions, credit risk of customers, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and variable consideration in a customer contract, expected recoverability from customers with contingent fee arrangements, estimated costs to complete fixed price contracts, recoverability of dues from statutory authorities, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based awards, and debt instruments, assumptions used to calculate stock-based compensation expense, assumptions used to determine the incremental borrowing rate to calculate lease liabilities and right-of-use (“ROU”) assets, lease term to calculate amortization of ROU, depreciation and amortization periods, and recoverability of long-lived assets, goodwill and intangibles. (c) Recent Accounting Pronouncements In March 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-01, Leases (“ASC Topic 842”): Common Control Arrangements . This ASU provides guidance in ASC Topic 842 that leasehold improvements associated with common control leases should be (i) amortized by the lessee over the useful life of the leasehold improvements to the common control group, regardless of the lease term, as long as the lessee controls the use of the underlying asset through a lease, and (ii) accounted for as a transfer between entities under common control through an adjustment to equity if and when the lessee no longer controls the use of the underlying asset. The ASU is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted for both interim and annual financial statements that have not yet been issued. When adopted in an interim period, it must be adopted from the beginning of the year that includes that interim period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. (d) Recently adopted Accounting Pronouncements In October 2021, FASB issued ASU No. 2021-08, Business Combinations (“ASC Topic 805”) : Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This ASU provides guidance in ASC Topic 805 to require the acquirer entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contract with Customers , as if it had originated the contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements, if the acquiree prepared financial statements in accordance with U.S. GAAP. The ASU is effective for fiscal years beginning after December 15, 2022. An entity may early adopt the ASU including adoption in an interim period, with retrospective application to all business combinations within the fiscal year that includes such interim period. The adoption of this ASU is applicable for future business combinations.

Segment and Geographical Inform

Segment and Geographical Information	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segment and Geographical Information	Segment and Geographical Information The Company is a provider of data analytics and digital operations and solutions. The Company manages and reports financial information through its four reportable segments: Insurance, Healthcare, Analytics and Emerging Business, which reflects how management reviews financial information and makes operating decisions. 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. The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments. The Company does not allocate, and therefore the CODM does not evaluate, certain operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented. Revenues and cost of revenues for the three months ended June 30, 2023 and 2022, respectively, for each of the reportable segments, are as follows: Three months ended June 30, 2023 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 128,457 $ 27,156 $ 67,200 $ 182,183 $ 404,996 Cost of revenues (1) 84,322 17,540 37,845 113,513 253,220 Gross profit (1) $ 44,135 $ 9,616 $ 29,355 $ 68,670 $ 151,776 Operating expenses 86,965 Foreign exchange gain, net, interest expense and other income, net (255) Income tax expense 15,554 Gain from equity-method investment 66 Net income $ 49,068 (1) Exclusive of depreciation and amortization expense. Three months ended June 30, 2022 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 108,557 $ 23,051 $ 53,873 $ 161,301 $ 346,782 Cost of revenues (1) 70,645 17,694 31,214 101,654 221,207 Gross profit (1) $ 37,912 $ 5,357 $ 22,659 $ 59,647 $ 125,575 Operating expenses 78,494 Foreign exchange gain, net, interest expense and other loss, net (253) Income tax expense 11,125 Gain from equity-method investment 143 Net income $ 35,846 (1) Exclusive of depreciation and amortization expense. Revenues and cost of revenues for the six months ended June 30, 2023 and 2022, respectively, for each of the reportable segments, are as follows: Six months ended June 30, 2023 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 254,393 $ 53,859 $ 133,361 $ 364,026 $ 805,639 Cost of revenues (1) 166,646 36,349 73,815 227,879 504,689 Gross profit (1) $ 87,747 $ 17,510 $ 59,546 $ 136,147 $ 300,950 Operating expenses 176,691 Foreign exchange gain, net, interest expense and other income, net (380) Income tax expense 23,612 Gain from equity-method investment 132 Net income $ 100,399 (1) Exclusive of depreciation and amortization expense. Six months ended June 30, 2022 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 211,823 $ 49,207 $ 104,620 $ 310,340 $ 675,990 Cost of revenues (1) 135,727 35,345 60,427 197,224 428,723 Gross profit (1) $ 76,096 $ 13,862 $ 44,193 $ 113,116 $ 247,267 Operating expenses 156,211 Foreign exchange gain, net, interest expense and other income, net 3,038 Income tax expense 22,327 Gain from equity-method investment 257 Net income $ 72,024 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Digital operations and solutions (1) $ 222,813 $ 185,481 $ 441,613 $ 365,650 Analytics services 182,183 161,301 364,026 310,340 Revenues, net $ 404,996 $ 346,782 $ 805,639 $ 675,990 (1) Digital operations and solutions include revenues of the Company’s Insurance, Healthcare and Emerging Business reportable segments. Refer to the reportable segment disclosure above. The Company attributes the revenues to regions based upon the location of its customers. Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Revenues, net United States $ 340,675 $ 298,520 $ 679,748 $ 580,899 Non-United States United Kingdom 43,648 32,090 85,222 64,863 Rest of World 20,673 16,172 40,669 30,228 Total Non-United States 64,321 48,262 125,891 95,091 Revenues, net $ 404,996 $ 346,782 $ 805,639 $ 675,990 Long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets were as follows: As of June 30, 2023 December 31, 2022 Long-lived assets United States $ 62,181 $ 60,709 India 45,769 50,118 Philippines 23,983 18,406 Rest of World 20,178 8,942 Long-lived assets $ 152,111 $ 138,175

Revenues, net

Revenues, net	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenues, net	Revenues, net Refer to Note 3 - Segment and Geographical Information to the unaudited consolidated financial statements for revenues disaggregated by reportable segments and geography. Contract balances The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers: As of June 30, 2023 December 31, 2022 Accounts receivable, net $ 288,305 $ 259,222 Contract assets $ 7,632 $ 2,768 Contract liabilities: Deferred revenue (consideration received in advance) $ 18,909 $ 17,079 Consideration received for process transition activities $ 9,122 $ 5,423 Accounts receivable includes $148,370 and $126,027 as of June 30, 2023 and December 31, 2022, respectively, representing unbilled receivables. The Company has accrued the unbilled receivables for work performed in accordance with the terms of contracts with customers and considers no significant performance risk associated with its unbilled receivables. Contract assets represent upfront payments such as deal signing discounts or deal signing bonuses made to customers. These costs are amortized over the expected period of the benefit and are recorded as an adjustment to transaction price and reduced from revenues. The Company’s assessment did not indicate any impairment losses on its contract assets for the periods presented. Contract liabilities represent that portion of deferred revenue for which payments have been received in advance from customers. The Company also defers revenues attributable to certain process transition activities for which costs have been capitalized by the Company as contract fulfillment costs. Consideration received from customers, if any, relating to such transition activities are classified under contract liabilities and are included within “Deferred revenues” and “Other non-current liabilities” in the consolidated balance sheets. The revenues are recognized as (or when) the performance obligation is fulfilled under the contract with customer. Revenue recognized during the three and six months ended June 30, 2023 and 2022, which was included in the contract liabilities balance at the beginning of the respective periods: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Deferred revenue (consideration received in advance) $ 2,990 $ 4,306 $ 15,992 $ 13,870 Consideration received for process transition activities $ 305 $ 298 $ 1,008 $ 664 Contract acquisition and fulfillment costs The following table provides details of the Company’s contract acquisition and fulfillment costs: Contract Acquisition Costs Three months ended Six months ended Year ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 December 31, 2022 Opening Balance $ 1,994 $ 927 $ 1,095 $ 511 $ 511 Additions 397 180 1,476 727 1,014 Amortization (208) (124) (388) (255) (430) Closing Balance $ 2,183 $ 983 $ 2,183 $ 983 $ 1,095 Contract Fulfillment Costs Three months ended Six months ended Year ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 December 31, 2022 Opening Balance $ 17,873 $ 7,435 $ 13,871 $ 5,795 $ 5,795 Additions 4,225 3,308 8,843 5,485 15,509 Amortization (653) (576) (1,269) (1,113) (7,433) Closing Balance $ 21,445 $ 10,167 $ 21,445 $ 10,167 $ 13,871 There was no impairment for contract acquisition and contract fulfillment costs as of June 30, 2023 and December 31, 2022. The capitalized costs are amortized over the expected period of benefit of the contract. Allowance for expected credit losses The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its significant customers to estimate the probability of default in the future. As of June 30, 2023 December 31, 2022 Accounts receivable, including unbilled receivables $ 290,105 $ 260,554 Less: Allowance for expected credit losses (1,800) (1,332) Accounts receivable, net $ 288,305 $ 259,222 The movement in “Allowance for expected credit losses” on customer balances was as follows: Three months ended Six months ended Year ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 December 31, 2022 Opening Balance $ 1,671 $ 588 $ 1,332 $ 573 $ 573 Additions 134 571 477 743 815 Reductions due to write-off of Accounts Receivables (5) (314) (8) (472) (60) Currency translation adjustments — (1) (1) — 4 Closing Balance $ 1,800 $ 844 $ 1,800 $ 844 $ 1,332 Concentration of credit risk To reduce credit risk, the Company conducts ongoing credit evaluations of its customers. No customer accounted for more than 10% of accounts receivable, net, as of June 30, 2023 and December 31, 2022.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding, adjusted for outstanding shares that are subject to repurchase during each period. Diluted earnings per share is computed using the weighted average number of common shares plus the potentially dilutive effect of common stock equivalents (outstanding stock options, restricted stock, restricted stock units and employee stock purchase plans) issued and outstanding at the reporting date, using the treasury stock method. Common stock equivalents that are anti-dilutive are excluded from the computation of weighted average shares outstanding. The following table sets forth the computation of basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Numerators: Net income $ 49,068 $ 35,846 $ 100,399 $ 72,024 Denominators: Basic weighted average common shares outstanding 33,355,354 33,403,411 33,397,226 33,422,618 Dilutive effect of share-based awards 333,095 427,128 412,329 439,979 Diluted weighted average common shares outstanding 33,688,449 33,830,539 33,809,555 33,862,597 Earnings per share attributable to ExlService Holdings, Inc. stockholders: Basic $ 1.47 $ 1.07 $ 3.01 $ 2.15 Diluted $ 1.46 $ 1.06 $ 2.97 $ 2.13 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 249,831 — 179,550 541

Other Income_(Loss), net

Other Income/(Loss), net	6 Months Ended
	Jun. 30, 2023
Other Income and Expenses [Abstract]
Other Income/(Loss), net	Other Income/(Loss), net Other income/(loss), net consists of the following: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Gain on sale and mark-to-market on investments $ 1,095 $ 634 $ 2,739 $ 1,870 Interest and dividend income 1,653 847 3,374 2,217 Others, net (87) (1,655) (297) (1,850) Other income/(loss), net $ 2,661 $ (174) $ 5,816 $ 2,237

Cash, Cash Equivalents and Rest

Cash, Cash Equivalents and Restricted Cash	6 Months Ended
	Jun. 30, 2023
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash For the purposes of unaudited statements of cash flows, cash, cash equivalents and restricted cash consist of the following: As of June 30, 2023 June 30, 2022 December 31, 2022 Cash and cash equivalents $ 93,960 $ 106,304 $ 118,669 Restricted cash (current) 4,628 6,840 4,897 Restricted cash (non-current) 2,072 2,056 2,055 Cash, cash equivalents and restricted cash $ 100,660 $ 115,200 $ 125,621 Restricted cash (current) primarily represents funds held on behalf of clients in dedicated bank accounts. The corresponding liability against the same is included under “Accrued Expenses and other current liabilities.” Restricted cash (non-current) represents amounts on deposit with banks against bank guarantees issued through banks in favor of relevant statutory authorities for equipment imports, deposits for obtaining indirect tax registrations and for demands against pending income tax assessments. These deposits with banks will mature one year after the balance sheet date.

Investments

Investments	6 Months Ended
	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Investments	Investments Investments consist of the following: As of June 30, 2023 December 31, 2022 Short-term investments Mutual funds $ 68,891 $ 110,964 Term deposits 87,207 68,063 Total Short-term investments $ 156,098 $ 179,027 Long-term investments Term deposits $ 12,515 $ 31,341 Investment in equity affiliate 3,570 3,438 Total Long-term investments $ 16,085 $ 34,779 Refer to Note 16 - Fair Value Measurements to the unaudited consolidated financial statements for further details.

Property and Equipment, net

Property and Equipment, net	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net consists of the following: As of Estimated useful lives (Years) June 30, 2023 December 31, 2022 Owned Assets: Network equipment and computers 3-5 $ 141,728 $ 130,218 Software 2-5 99,828 88,487 Leasehold improvements 3-8 40,566 42,890 Office furniture and equipment 3-8 19,938 20,211 Motor vehicles 2-5 738 605 Buildings 30 970 961 Land — 634 629 Capital work in progress — 13,532 14,459 317,934 298,460 Less: Accumulated depreciation and amortization (224,764) (216,132) 93,170 82,328 Right-of-use assets under finance leases*: Network equipment and computers 58 82 Leasehold improvements 611 1,013 Office furniture and equipment 435 662 Motor vehicles 802 742 1,906 2,499 Less: Accumulated depreciation and amortization (1,388) (1,999) 518 500 Property and equipment, net $ 93,688 $ 82,828 *Depreciation on assets held under finance leases are computed using the straight-line method over the shorter of the assets estimated useful lives or the lease term. Capital work in progress represents advances paid towards acquisition of property and equipment and costs incurred on internally developed software not yet ready to be placed in service. During the three and six months ended June 30, 2023, there were no material changes in estimated useful lives of property and equipment during the ordinary course of operations. The depreciation and amortization expense, excluding amortization of acquisition-related intangibles, recognized in the unaudited consolidated statements of income was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Depreciation and amortization expense $ 8,918 $ 9,929 $ 18,256 $ 19,045 The effect of foreign exchange gain/(loss) upon settlement of cash flow hedges recorded under depreciation and amortization expense, was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Effect of foreign exchange gain/(loss) $ (66) $ (5) $ (145) $ 62 Internally developed software costs, included under Software, was as follows: As of June 30, 2023 December 31, 2022 Cost $ 42,478 $ 31,544 Less : Accumulated amortization (20,540) (16,134) Internally developed software, net $ 21,938 $ 15,410 The amortization expense on internally developed software recognized in the unaudited consolidated statements of income was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Amortization expense $ 2,425 $ 1,549 $ 4,400 $ 2,582 As of June 30, 2023 and December 31, 2022, the Company believes no impairment exists because the long-lived asset's future undiscounted net cash flows expected to be generated exceeds its carrying value; however, there can be no assurance that long-lived assets will not be impaired in future periods. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which undiscounted cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount, the asset’s residual value, if any. It is reasonably possible that the judgments and estimates described above could change in future periods.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare Emerging Business Analytics Total Balance as of January 1, 2023 $ 49,929 $ 21,875 $ 47,101 $ 286,732 $ 405,637 Currency translation adjustments 119 5 142 — 266 Balance as of June 30, 2023 $ 50,048 $ 21,880 $ 47,243 $ 286,732 $ 405,903 As of June 30, 2023, the Company performed an assessment to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company considered current and forecasted economic and market conditions and qualitative factors, such as the Company’s performance during the first half of the current fiscal year, business forecasts for the remainder of the year, stock price movements, generation and availability of cash and expansion plans. The Company reviewed key assumptions, including revisions of projected future revenues for reporting units against the results of the annual impairment test performed during the fourth quarter of 2022. The Company did not identify any triggers or indications of potential impairment for its reporting units as of June 30, 2023. The recoverability of goodwill is dependent upon the continued growth of cash flows from the Company’s business activities. This growth is based on business forecasts and improvement in profitability of its reporting units. The Company continues to maintain its focus on cultivating long-term client relationships as well as attracting new clients. Other Intangible Assets Information regarding the Company’s intangible assets is set forth below: As of June 30, 2023 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 99,146 $ (45,463) $ 53,683 Developed technology 3,542 (2,092) 1,450 Trade names and trademarks 1,700 (1,447) 253 Non-compete agreements 336 (135) 201 104,724 (49,137) 55,587 Indefinite-lived intangible assets: Trade names and trademarks 900 — 900 Total intangible assets $ 105,624 $ (49,137) $ 56,487 As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Finite-lived intangible assets: Customer relationships $ 99,146 $ (39,848) $ 59,298 Developed technology 24,878 (20,902) 3,976 Trade names and trademarks 1,700 (1,303) 397 Non-compete agreements 336 (88) 248 126,060 (62,141) 63,919 Indefinite-lived intangible assets: Trade names and trademarks 900 — 900 Total intangible assets $ 126,960 $ (62,141) $ 64,819 The amortization expense recognized in the unaudited consolidated statements of income was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Amortization expense $ 4,204 $ 4,146 $ 8,353 $ 8,632 The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 5.0 Developed technology 1.9 Trade names and trademarks (finite lived) 1.1 Non-compete agreements 2.3 Estimated future amortization expense related to finite-lived intangible assets as of June 30, 2023 was as follows: 2023 (July 1 - December 31) $ 6,315 2024 12,140 2025 10,705 2026 10,366 2027 9,364 2028 and thereafter 6,697 Total $ 55,587

Other Current Assets

Other Current Assets	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	Other Current Assets Other current assets consist of the following: As of June 30, 2023 December 31, 2022 Prepaid expenses $ 19,811 $ 18,132 Advance income tax, net 17,787 5,716 Receivables from statutory authorities 16,338 15,724 Derivative instruments 5,062 1,526 Advances to suppliers 2,851 1,944 Deferred contract fulfillment costs 2,112 1,178 Contract assets 1,527 904 Others 4,698 5,855 Other current assets $ 70,186 $ 50,979

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	Other Assets Other assets consist of the following: As of June 30, 2023 December 31, 2022 Deferred contract fulfillment costs $ 19,333 $ 12,693 Lease deposits 6,925 6,621 Deposits with statutory authorities 6,318 6,276 Contract assets 6,105 1,864 Derivative instruments 5,238 820 Others 4,336 3,795 Other assets $ 48,255 $ 32,069

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: As of June 30, 2023 December 31, 2022 Accrued expenses $ 50,714 $ 47,854 Payable to statutory authorities 17,966 20,430 Contingent consideration 13,100 5,000 Accrued capital expenditures 7,021 4,032 Client liabilities 5,179 5,110 Derivative instruments 3,295 10,059 Other current liabilities 7,205 2,867 Accrued expenses and other current liabilities $ 104,480 $ 95,352

Other Non-Current Liabilities

Other Non-Current Liabilities	6 Months Ended
	Jun. 30, 2023
Liabilities, Noncurrent [Abstract]
Other Non-Current Liabilities	Other Non-Current Liabilities Other non-current liabilities consist of the following: As of June 30, 2023 December 31, 2022 Retirement benefits $ 15,265 $ 12,982 Deferred transition revenue 7,981 4,408 Unrecognized tax benefits 2,329 2,329 Derivative instruments 613 6,218 Contingent consideration 589 13,689 Others 1,566 1,666 Other non-current liabilities $ 28,343 $ 41,292

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income/(Loss)	6 Months Ended
	Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income/(Loss)	Accumulated Other Comprehensive Income/(Loss) Accumulated other comprehensive income/(loss) (“AOCI”) consists of actuarial gain/(loss) on retirement benefits and foreign currency translation adjustments. In addition, the Company enters into foreign currency forward contracts and interest rate swaps, which are designated as cash flow hedges and net investment hedges, as applicable, in accordance with ASC Topic 815, Derivatives and Hedging . Cumulative changes in the fair values of cash flow hedges are recognized in AOCI on the Company’s consolidated balance sheets. The fair value changes are reclassified from AOCI to unaudited consolidated statements of income upon settlement of foreign currency forward contracts designated as cash flow hedges of a forecast transaction, whereas such changes for interest rate swaps are reclassified over the term of the contract. Fair value changes related to net investment hedges are included in AOCI and are reclassified to unaudited consolidated statements of income when a foreign operation is disposed or partially disposed. The following table sets forth the changes in AOCI during the six months ended June 30, 2023 and 2022: Accumulated Other Comprehensive Income/(Loss) Foreign currency translation gain/(loss) Unrealized gain/(loss) on cash flow hedges Retirement benefits Total Balance as of January 1, 2023 $ (133,139) $ (11,303) $ 299 $ (144,143) Gains recognized during the period 5,177 16,145 — 21,322 Reclassification to net income (1) — 4,229 (48) 4,181 Income tax effects (2) (1,136) (4,334) (37) (5,507) Accumulated other comprehensive income/(loss) as of June 30, 2023 $ (129,098) $ 4,737 $ 214 $ (124,147) Balance as of January 1, 2022 $ (95,437) $ 8,420 $ (2,457) $ (89,474) Losses recognized during the period (30,227) (15,149) — (45,376) Reclassification to net income (1) — (3,448) 304 (3,144) Income tax effects (2) 979 3,733 (92) 4,620 Accumulated other comprehensive income/(loss) as of June 30, 2022 $ (124,685) $ (6,444) $ (2,245) $ (133,374) (1) Refer to Note 17 - Derivatives and Hedge Accounting and Note 20 - Employee Benefit Plans to the unaudited consolidated financial statements for reclassification to net income. (2) These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gain/(loss). Refer to Note 22 - Income Taxes to the unaudited consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Assets and Liabilities Measured at Fair Value The following table sets forth the Company’s assets and liabilities that were recognized at fair value: Quoted Prices in Significant Other Significant Other As of June 30, 2023 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 17,972 $ — $ — $ 17,972 Mutual funds** 68,891 — — 68,891 Derivative financial instruments — 10,300 — 10,300 Total $ 86,863 $ 10,300 $ — $ 97,163 Liabilities Derivative financial instruments $ — $ 3,908 $ — $ 3,908 Contingent consideration*** — — 13,689 13,689 Total $ — $ 3,908 $ 13,689 $ 17,597 Quoted Prices in Significant Other Significant Other As of December 31, 2022 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 1,137 $ — $ — $ 1,137 Mutual funds** 110,964 — — 110,964 Derivative financial instruments — 2,346 — 2,346 Total $ 112,101 $ 2,346 $ — $ 114,447 Liabilities Derivative financial instruments $ — $ 16,277 $ — $ 16,277 Contingent consideration*** — — 18,689 18,689 Total $ — $ 16,277 $ 18,689 $ 34,966 * Represents money market funds which are carried at the fair value option under ASC Topic 825 “Financial Instruments”. ** Represents those short-term investments which are carried at the fair value option under ASC Topic 825 “Financial Instruments”. *** Contingent consideration is presented under “Accrued Expenses and Other Current Liabilities” and “Other Non-Current Liabilities,” as applicable, in the consolidated balance sheets. Derivative Financial Instruments: The Company’s derivative financial instruments consist of foreign currency forward contracts and interest rate swaps. Fair values for derivative financial instruments are based on independent sources including highly rated financial institutions and are classified as Level 2. Refer to Note 17 - Derivatives and Hedge Accounting to the unaudited consolidated financial statements for further details. Fair Value of Contingent Consideration: The fair value measurement of contingent consideration is determined using Level 3 inputs. The Company’s contingent consideration represents a component of the total purchase consideration for business acquisitions. The measurement is calculated using unobservable inputs based on the Company’s own assessment of achievement of certain performance goals. The Company estimated the fair value of the contingent consideration based on the Monte Carlo simulation model and scenario-based method. The following table summarizes the changes in the fair value of contingent consideration: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Opening balance $ 18,689 $ 9,000 $ 18,689 $9,000 Acquisitions — 1,439 — 1,439 Fair value changes — 1,000 — 1,000 Payments (5,000) — (5,000) — Closing balance $ 13,689 $ 11,439 $ 13,689 $ 11,439 During the three and six months ended June 30, 2023 and 2022, there were no transfers among Level 1, Level 2 and Level 3. Financial Instruments Not Carried at Fair Value : The Company’s other financial instruments not carried at fair value consist primarily of cash and cash equivalents (except investments in money market funds, as disclosed above), short-term investments (except investments in mutual funds, as disclosed above), restricted cash, accounts receivable, net, long-term investments, accrued capital expenditures, accrued expenses, client liabilities and interest payable on borrowings for which fair values approximate their carrying amounts. The carrying value of the Company’s outstanding revolving credit facility approximates its fair value because the Company’s interest rate yield is near current market rates for comparable debt instruments.

Derivatives and Hedge Accountin

Derivatives and Hedge Accounting	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Hedge Accounting	Derivatives and Hedge Accounting The Company uses derivative instruments to mitigate cash flow volatility from risk of fluctuations in foreign currency exchange rates and interest rates. The Company enters into foreign currency forward contracts to hedge cash flow risks from forecasted transactions denominated in certain foreign currencies, and interest rate swaps to hedge cash flow risks from its revolving credit facility having variable interest rate obligations. These contracts qualify as cash flow hedges under ASC Topic 815, Derivatives and Hedging , and are with counterparties that are highly rated financial institutions. For derivatives in cash flow hedging relationships as of June 30, 2023 and December 31, 2022, the Company had outstanding foreign currency forward contracts totaling $831,250 and $841,620, respectively and interest rate swaps totaling $75,000, each. The Company estimates that approximately $1,578 of derivative gains, net, excluding tax effects, included in AOCI, representing changes in the value of cash flow hedges based on exchange rates prevailing as of June 30, 2023, could be reclassified into earnings within the next twelve months. As of June 30, 2023, the maximum outstanding term of the cash flow hedges was approximately 39 months. The Company also enters into foreign currency forward contracts to hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies, against the risk of fluctuations in foreign currency exchange rates associated with remeasurement of such assets and liabilities to functional currency. These foreign currency forward contracts do not qualify as fair value hedges under ASC Topic 815, Derivatives and Hedging . Changes in the fair value of these financial instruments are recognized in the unaudited consolidated statements of income and are included in the foreign exchange gain/(loss) line item. The Company’s primary exchange rate exposure is with the Indian rupee, the Philippine peso and the U.K. pound sterling (GBP). The Company also has exposure to Colombian pesos (COP), the Euro (EUR), South African ZAR, the Australian dollar (AUD), the Canadian dollar (CAD) and other local currencies in which it operates. The following table sets forth the aggregate notional principal amounts of outstanding foreign currency forward contracts for derivatives not designated as hedging instruments: As of Foreign currency forward contracts denominated in: June 30, 2023 December 31, 2022 U. S. dollar (USD) 165,793 163,990 U.K. pound sterling (GBP) 11,235 8,351 Euro (EUR) 3,947 1,956 Australian dollar (AUD) 4,471 1,951 South African ZAR 102,249 — Colombian peso (COP) 2,449,676 — The following table sets forth the fair value of the foreign currency forward contracts and interest rate swaps and their location on the consolidated balance sheets: Derivatives in cash flow hedging Derivatives not designated as hedging As of As of June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Assets: Other current assets $ 4,775 $ 1,271 $ 287 $ 255 Other assets $ 5,238 $ 820 $ — $ — Liabilities: Accrued expenses and other $ 3,197 $ 10,044 $ 98 $ 15 Other non-current liabilities $ 613 $ 6,218 $ — $ — The following table sets forth the effect of foreign currency forward contracts and interest rate swaps on AOCI and the unaudited consolidated statements of income: Three months ended June 30, Six months ended June 30, Derivative financial instruments: 2023 2022 2023 2022 Unrealized gain/(loss) recognized in AOCI Derivatives in cash flow hedging relationships $ 8,851 $ (14,632) $ 16,145 $ (15,149) Gain/(loss) recognized in unaudited consolidated statements of income Derivatives not designated as hedging instruments $ (370) $ (5,457) $ 2,158 $ (6,356) The following table sets forth the location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments: Three months ended June 30, 2023 2022 As per unaudited consolidated Gain/(loss) on derivative financial instruments As per unaudited consolidated Gain/(loss) on derivative financial instruments Derivatives in cash flow hedging relationships Location in unaudited consolidated statements of income where gain/(loss) was reclassified from AOCI Cost of revenues $ 253,220 $ (1,141) $ 221,207 $ 1,194 General and administrative expenses $ 45,605 (133) $ 40,434 181 Selling and marketing expenses $ 28,238 (13) $ 23,985 15 Depreciation and amortization expense $ 13,122 (43) $ 14,075 69 Interest expense $ 3,240 166 $ 1,502 — Total before tax (1,164) 1,459 Income tax effects on above 231 (420) Net of tax $ (933) $ 1,039 Derivatives not designated as hedging instruments Location in unaudited consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 324 $ (370) $ 1,423 $ (5,457) $ 324 $ (370) $ 1,423 $ (5,457) The following table sets forth the location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments: Six months ended June 30, 2023 2022 As per unaudited consolidated Gain/(loss) on derivative financial instruments As per unaudited consolidated Gain/(loss) on derivative financial instruments Derivatives in cash flow hedging relationships Location in unaudited consolidated statements of income where gain/(loss) was reclassified from AOCI Cost of revenues $ 504,689 $ (3,896) $ 428,723 $ 2,777 General and administrative expenses $ 92,351 (375) $ 80,379 475 Selling and marketing expenses $ 57,731 (32) $ 48,155 29 Depreciation and amortization expense $ 26,609 (166) $ 27,677 167 Interest expense $ 6,625 240 $ 2,378 — Total before tax (4,229) 3,448 Income tax effects on above 765 (935) Net of tax $ (3,464) $ 2,513 Derivatives not designated as hedging instruments Location in unaudited consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 429 $ 2,158 $ 3,179 $ (6,356) $ 429 $ 2,158 $ 3,179 $ (6,356)

Borrowings

Borrowings	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Borrowings	Borrowings The following table summarizes the Company’s debt position: As of June 30, 2023 December 31, 2022 Revolving credit facility Current portion of long-term borrowings $ 30,000 $ 30,000 Long-term borrowings 190,000 220,000 Total borrowings $ 220,000 $ 250,000 Unamortized debt issuance costs for the Company’s revolving credit facility of $1,040 and $1,177 as of June 30, 2023 and December 31, 2022, respectively, are presented under “Other current assets” and “Other assets,” as applicable in the consolidated balance sheets. Credit Agreement The Company held a $300,000 revolving credit facility pursuant to its credit agreement (the “Credit Agreement”), dated as of November 21, 2017 with certain lenders and Citibank N.A. as Administrative Agent. The revolving credit facility originally had a maturity date of November 21, 2022 and was voluntarily pre-payable from time to time without premium or penalty. On April 18, 2022, the Company and each of the Company’s wholly owned material domestic subsidiaries entered into an Amendment and Restatement Agreement with Citibank, N.A. as Administrative Agent and certain lenders (the “2022 Credit Agreement”), pursuant to which the parties thereto amended and restated the Credit Agreement. Among other things, the 2022 Credit Agreement (a) provides for the issuance of new revolving credit commitments such that the aggregate amount of revolving credit commitments available to the Company is equal to $400,000; (b) extends the maturity date of the revolving credit facility from November 21, 2022 to April 18, 2027; and (c) replaces LIBOR with Secured Overnight Financing Rate (“SOFR”) as the reference rate for the U.S. dollar borrowings. The 2022 Credit Agreement provides an option to increase the commitments by up to $200,000, subject to certain approvals and conditions. The 2022 Credit Agreement includes a letter of credit sub facility and is voluntarily pre-payable from time to time without premium or penalty. Borrowings under the 2022 Credit Agreement can be used for working capital and general corporate purposes, including permitted acquisitions. Obligations under the 2022 Credit Agreement are guaranteed by the Company’s material domestic subsidiaries and are secured by all or substantially all of the Company’s and its material domestic subsidiaries’ assets. The 2022 Credit Agreement contains customary affirmative and negative covenants, including, but not limited to, restrictions on the ability to incur indebtedness, create liens, make certain investments, make certain dividends and related distributions, enter into, or undertake, certain liquidations, mergers, consolidations or acquisitions and dispose of certain assets or subsidiaries. The revolving credit facility carried an effective interest rate as shown below: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Effective Interest Rate 6.2 % 2.0 % 6.1 % 1.7 % As of June 30, 2023 and December 31, 2022, the Company was in compliance with all financial and non-financial covenants listed under the revolving credit facility. Expected payments for all of the Company’s borrowings as of June 30, 2023 were as follows: Revolving credit facility Principal Interest 2023 (July 1 - December 31) $ 30,000 $ 6,216 2024 — 11,522 2025 — 11,522 2026 — 11,522 2027 190,000 4,321 Total $ 220,000 $ 45,103 * Interest payments are based on interest rate prevailing as of June 30, 2023. Letters of Credit In the ordinary course of business, the Company provides standby letters of credit to third parties primarily for facility leases. As of each of June 30, 2023 and December 31, 2022, the Company had outstanding letters of credit of $461, that were not recognized in the consolidated balance sheets.

Capital Structure

Capital Structure	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Capital Structure	Capital Structure Common Stock The Company has one class of common stock outstanding. The Company purchased shares of its common stock from employees in connection with withholding tax payments related to the vesting of restricted stock units and performance-based restricted stock units, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Three months ended June 30, 2023 — $ — $ — Three months ended June 30, 2022 — $ — $ — Six months ended June 30, 2023 38,356 $ 6,529 $ 170.22 Six months ended June 30, 2022 27,219 $ 3,191 $ 117.23 (1) The weighted average purchase price per share is based on the closing price of the Company’s common stock on the Nasdaq Global Select Market on the trading day prior to the applicable vesting date of the shares of restricted stock. On October 5, 2021, the Company’s board of directors authorized a $300,000 common stock repurchase program beginning January 1, 2022 (the “2022 Repurchase Program”). Under the 2022 Repurchase Program, shares may be purchased by the Company from time to time from the open market and through private transactions, or otherwise, as determined by the Company’s management as market conditions warrant. Repurchases may be discontinued at any time by the management. The Company purchased shares of its common stock, for a total consideration including commissions, under the 2022 Repurchase Program, as below: Shares repurchased Total consideration Weighted average purchase price per share Three months ended June 30, 2023 184,144 $ 29,013 $ 157.56 Three months ended June 30, 2022 205,716 $ 28,806 $ 140.03 Six months ended June 30, 2023 405,169 $ 64,847 $ 160.05 Six months ended June 30, 2022 427,049 $ 57,000 $ 133.47 Repurchased shares have been recorded as treasury shares and will be held until the Company’s board of directors designates that these shares be retired or used for other purposes.

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit PlansThe Company’s Gratuity Plan in India (the “India Plan”) provides for a lump sum payment to vested employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. In addition, the Company’s subsidiary operating in the Philippines conforms to the minimum regulatory benefit, which provide for lump sum payment to vested employees on retirement from employment in an amount based on the respective employee’s salary and years of employment with the Company (the “Philippines Plan”). Liabilities with regard to the India Plan and the Philippines Plan are determined by actuarial valuation using the projected unit credit method. Current service costs for these plans are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees. The India Plan is partially funded whereas the Philippines Plan is unfunded. The Company makes annual contributions to the India Plan established with insurance companies. Fund managers manage these funds and calculate the annual contribution required to be made by the Company and manage the India Plan, including any required payouts. These funds are managed on a cash accumulation basis and interest is declared retrospectively on March 31 of each year. The Company expects to earn a return of approximately 7.0% per annum on the India Plan for the year ending on December 31, 2023. Change in Plan Assets Plan assets as of January 1, 2023 $ 14,449 Actual return 692 Employer contribution — Benefits paid* (542) Effect of exchange rate changes 121 Plan assets as of June 30, 2023 $ 14,720 * Benefits payments were substantially made through the plan assets during the six months ended June 30, 2023. Components of net periodic benefit costs recognized in unaudited consolidated statements of income and actuarial (gain)/loss reclassified from AOCI, were as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Service cost $ 953 $ 958 $ 1,909 $ 1,948 Interest cost 393 313 788 636 Expected return on plan assets (264) (221) (527) (449) Amortization of actuarial (gain)/loss, gross of tax (23) 149 (48) 304 Net gratuity cost $ 1,059 $ 1,199 $ 2,122 $ 2,439 Amortization of actuarial (gain)/loss, gross of tax $ (23) $ 149 $ (48) $ 304 Income tax effects on above (18) (45) (37) (92) Amortization of actuarial (gain)/loss, net of tax $ (41) $ 104 $ (85) $ 212 The Company maintains several 401(k) plans (the “401(k) Plans”) under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), covering all eligible employees, as defined in the Code as a defined social security contribution plan. The Company may make discretionary contributions of up to a maximum of 3.0% of employee compensation within certain limits. The Company’s accrual for contribution to the 401(k) Plans was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Contribution to the 401(k) Plans $ 1,178 $ 1,026 $ 3,564 $ 3,043 The Company’s contribution for various defined social security contribution plans on behalf of employees in foreign subsidiaries of the Company was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Contributions to the defined social security contribution plans $ 5,604 $ 4,549 $ 10,996 $ 8,762

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	Leases The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. The lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements. The Company had performed an evaluation of its contracts with suppliers in accordance with ASC Topic 842, Leases , and had determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease. As part of the Company’s efforts to optimize its existing network of operations centers, the Company continued to evaluate its office facilities to determine where it can exit or consolidate its use of office space. Supplemental balance sheet information As of June 30, 2023 December 31, 2022 Operating Lease Operating lease right-of-use assets $ 58,423 $ 55,347 Operating lease liabilities - Current $ 14,482 $ 14,978 Operating lease liabilities - Non-current 50,575 48,155 Total operating lease liabilities $ 65,057 $ 63,133 Finance Lease Property and equipment, gross $ 1,906 $ 2,499 Accumulated depreciation (1,388) (1,999) Property and equipment, net $ 518 $ 500 Finance lease liabilities - Current $ 167 $ 164 Finance lease liabilities - Non-current 373 355 Total finance lease liabilities $ 540 $ 519 Finance lease liabilities are presented as a part of “Accrued expenses and other current liabilities” and “Other non-current liabilities,” as applicable, in the Company’s consolidated balance sheets. The components of lease cost, which are included in the Company’s unaudited consolidated statements of income, are as follows: Lease cost Three months ended June 30, Six months ended June 30, Finance lease: 2023 2022 2023 2022 Amortization of right-of-use assets $ 39 $ 50 $ 77 $ 88 Interest on lease liabilities 18 14 38 28 57 64 115 116 Operating lease (a) 5,449 5,962 10,332 12,005 Variable lease costs 1,157 1,408 2,164 2,529 Total lease cost $ 6,663 $ 7,434 $ 12,611 $ 14,650 (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Six months ended June 30, 2023 2022 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 10,829 $ 11,922 Operating cash outflows for finance leases $ 38 $ 28 Financing cash outflows for finance leases $ 80 $ 75 Right-of-use assets obtained in exchange for new operating lease liabilities $ 10,929 $ 3,540 Right-of-use assets obtained in exchange for new finance lease liabilities $ 91 $ 118 Weighted average remaining lease term (in years) Finance lease 2.7 years 2.5 years Operating lease 5.6 years 5.5 years Weighted average discount rate Finance lease 14.0 % 14.5 % Operating lease 7.3 % 7.0 % The Company modified certain of its operating leases, resulting in a decrease of its lease liabilities by $2,466 and an increase of its lease liabilities by $263, during the six months ended June 30, 2023 and June 30, 2022, respectively, with a corresponding adjustment to ROU assets. As of June 30, 2023 and December 31, 2022, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company. Maturities of lease liabilities as of June 30, 2023 were as follows: Operating Leases Finance Leases 2023 (July 1 - December 31) $ 9,445 $ 133 2024 17,314 187 2025 12,908 125 2026 11,926 113 2027 9,151 112 2028 and thereafter 20,554 22 Total lease payments 81,298 692 Less: Imputed interest 16,241 152 Present value of lease liabilities $ 65,057 $ 540 Maturities of lease liabilities as of December 31, 2022 were as follows: Operating Leases Finance Leases 2023 $ 18,711 $ 228 2024 14,846 162 2025 10,037 114 2026 8,941 88 2027 6,474 79 2028 and thereafter 19,624 — Total lease payments 78,633 671 Less: Imputed interest 15,500 152 Present value of lease liabilities $ 63,133 $ 519
Leases	Leases The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. The lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements. The Company had performed an evaluation of its contracts with suppliers in accordance with ASC Topic 842, Leases , and had determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease. As part of the Company’s efforts to optimize its existing network of operations centers, the Company continued to evaluate its office facilities to determine where it can exit or consolidate its use of office space. Supplemental balance sheet information As of June 30, 2023 December 31, 2022 Operating Lease Operating lease right-of-use assets $ 58,423 $ 55,347 Operating lease liabilities - Current $ 14,482 $ 14,978 Operating lease liabilities - Non-current 50,575 48,155 Total operating lease liabilities $ 65,057 $ 63,133 Finance Lease Property and equipment, gross $ 1,906 $ 2,499 Accumulated depreciation (1,388) (1,999) Property and equipment, net $ 518 $ 500 Finance lease liabilities - Current $ 167 $ 164 Finance lease liabilities - Non-current 373 355 Total finance lease liabilities $ 540 $ 519 Finance lease liabilities are presented as a part of “Accrued expenses and other current liabilities” and “Other non-current liabilities,” as applicable, in the Company’s consolidated balance sheets. The components of lease cost, which are included in the Company’s unaudited consolidated statements of income, are as follows: Lease cost Three months ended June 30, Six months ended June 30, Finance lease: 2023 2022 2023 2022 Amortization of right-of-use assets $ 39 $ 50 $ 77 $ 88 Interest on lease liabilities 18 14 38 28 57 64 115 116 Operating lease (a) 5,449 5,962 10,332 12,005 Variable lease costs 1,157 1,408 2,164 2,529 Total lease cost $ 6,663 $ 7,434 $ 12,611 $ 14,650 (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Six months ended June 30, 2023 2022 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 10,829 $ 11,922 Operating cash outflows for finance leases $ 38 $ 28 Financing cash outflows for finance leases $ 80 $ 75 Right-of-use assets obtained in exchange for new operating lease liabilities $ 10,929 $ 3,540 Right-of-use assets obtained in exchange for new finance lease liabilities $ 91 $ 118 Weighted average remaining lease term (in years) Finance lease 2.7 years 2.5 years Operating lease 5.6 years 5.5 years Weighted average discount rate Finance lease 14.0 % 14.5 % Operating lease 7.3 % 7.0 % The Company modified certain of its operating leases, resulting in a decrease of its lease liabilities by $2,466 and an increase of its lease liabilities by $263, during the six months ended June 30, 2023 and June 30, 2022, respectively, with a corresponding adjustment to ROU assets. As of June 30, 2023 and December 31, 2022, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company. Maturities of lease liabilities as of June 30, 2023 were as follows: Operating Leases Finance Leases 2023 (July 1 - December 31) $ 9,445 $ 133 2024 17,314 187 2025 12,908 125 2026 11,926 113 2027 9,151 112 2028 and thereafter 20,554 22 Total lease payments 81,298 692 Less: Imputed interest 16,241 152 Present value of lease liabilities $ 65,057 $ 540 Maturities of lease liabilities as of December 31, 2022 were as follows: Operating Leases Finance Leases 2023 $ 18,711 $ 228 2024 14,846 162 2025 10,037 114 2026 8,941 88 2027 6,474 79 2028 and thereafter 19,624 — Total lease payments 78,633 671 Less: Imputed interest 15,500 152 Present value of lease liabilities $ 63,133 $ 519

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company determines the tax provision for interim periods using an estimate of its annual effective tax rate. Each quarter, the Company updates its estimate of annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. The effective tax rate increased from 23.8% during the three months ended June 30, 2022 to 24.1% during the three months ended June 30, 2023. The Company recorded income tax expense of $15,554 and $11,125 for the three months ended June 30, 2023 and 2022, respectively. The increase in income tax expense was primarily as a result of higher profit during the three months ended June 30, 2023, compared to the three months ended June 30, 2022, and an increase in non-deductible expenses during the three months ended June 30, 2023, partially offset by higher excess tax benefits related to stock-based compensation during the three months ended June 30, 2023, compared to the three months ended June 30, 2022. The effective tax rate decreased from 23.7% during the six months ended June 30, 2022 to 19.1% during the six months ended June 30, 2023. The Company recorded income tax expense of $23,612 and $22,327 for the six months ended June 30, 2023 and June 30, 2022, respectively. The increase in income tax expense was primarily as a result of higher profit during the six months ended June 30, 2023, compared to the six months ended June 30, 2022, and an increase in non-deductible expenses, partially offset by higher excess tax benefits related to stock-based compensation during the six months ended June 30, 2023, compared to the six months ended June 30, 2022. During the six months ended June 30, 2023, the Company’s subsidiaries in India, the United Kingdom and Australia repatriated $76,000 (net of $4,015 withholding taxes), $15,598 and $9,081, respectively, to the United States. These distributions do not constitute a change in the Company’s permanent reinvestment assertion. Deferred income taxes recognized in AOCI were as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Deferred taxes benefit / (expense) recognized on: Unrealized gain/(loss) on cash flow hedges $ (2,269) $ 2,801 $ (3,569) $ 2,798 Reclassification adjustment for cash flow hedges (231) 420 (765) 935 Reclassification adjustment for retirement benefits (18) (45) (37) (92) Foreign currency translation adjustments 2 480 (1,136) 979 Total $ (2,516) $ 3,656 $ (5,507) $ 4,620

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense by nature of function, as below, are included in the unaudited consolidated statements of income: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Cost of revenues $ 3,341 $ 3,131 $ 6,907 $ 5,772 General and administrative expenses 3,210 5,305 9,035 9,700 Selling and marketing expenses 4,960 4,904 9,976 9,092 Total $ 11,511 $ 13,340 $ 25,918 $ 24,564 Income tax benefit related to share-based compensation (1) $ 2,789 $ 3,216 $ 12,619 $ 6,022 (1) Includes $190 and $14 during the three months ended June 30, 2023 and 2022, respectively, and $12,710 and $3,624 during the six months ended June 30, 2023 and 2022, respectively, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation. As of June 30, 2023 and December 31, 2022, the Company had 678,615 and 1,324,755 shares, respectively, available for grant under the 2018 Omnibus Incentive Plan. Stock Options Stock options activity under the Company’s stock-based compensation plans is shown below: Number of Stock Weighted Average Aggregate Weighted Average Outstanding as of December 31, 2022 3,093 $ 27.62 $ 362 1.0 Granted 331,336 150.75 — 10.0 Exercised (3,093) 27.62 384 — Forfeited — — — — Outstanding as of June 30, 2023 331,336 $ 150.75 $ 103 10.0 Vested and exercisable as of June 30, 2023 — $ — $ — — Weighted average grant date fair value of Stock options granted during the period $ 60.13 Stock options granted under the 2018 Omnibus Incentive Plan during the three and six months ended June 30, 2023, have a contractual period of ten years and vest ratably over four years. The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Three and Six months ended June 30, 2023 Dividend yield — Expected life (years) 6.25 Risk free interest rate for expected life 3.8 % Volatility for expected life 32.4 % The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. As of June 30, 2023, unrecognized compensation cost of $19,801 is expected to be expensed over a weighted average period of 4.0 years. The total grant date fair value of stock options exercised during the three and six months ended June 30, 2023 and 2022, was $30 and $nil, respectively. Share Matching Program Under the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”), the Company established a share matching program (“SMP”) for executive officers and other specified employees. Under the SMP, the Company agreed to issue a number of restricted stock units equal to the number of newly acquired shares of the Company's common stock. Restricted stock unit activity under the SMP is shown below: Restricted Stock Units (SMP) Number Weighted Average Outstanding as of December 31, 2022 47,623 $ 124.76 Granted — — Vested — — Forfeited (4,177) 124.76 Outstanding as of June 30, 2023 43,446 $ 124.76 As of June 30, 2023, unrecognized compensation cost of $3,165 is expected to be expensed over a weighted average period of 1.8 years. Restricted Stock Units Restricted stock unit activity under the Company’s stock-based compensation plans is shown below: Restricted Stock Units Number Weighted Average Outstanding as of December 31, 2022* 923,126 $ 98.71 Granted 238,431 171.38 Vested (307,060) 90.47 Forfeited (61,323) 104.53 Outstanding as of June 30, 2023* 793,174 $ 123.29 * As of June 30, 2023 and December 31, 2022 restricted stock units vested for which the underlying common stock is yet to be issued are 130,528 and 174,490 respectively. As of June 30, 2023, unrecognized compensation cost of $77,100 is expected to be expensed over a weighted average period of 2.7 years. Performance Based Stock Awards Under the 2018 Plan, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. During the six months ended June 30, 2023, the Company granted 40% of each award recipient’s equity grants in the form of PRSUs that cliff vest at the end of a three-year period based on an aggregated revenue target for a three-year period (“PU”). The remaining 60% of each award recipient’s equity grants are PRSUs that are based on market conditions, contingent on the Company’s meeting a total shareholder return relative to a group of peer companies specified under the 2018 Plan, and are measured over a three-year performance period (“MU”). PRSU activity under the Company’s stock plans is shown below: Revenue Based PRSUs Market Condition Based PRSUs Number Weighted Average Number Weighted Average Outstanding as of December 31, 2022 49,591 $ 119.99 178,712 $ 134.72 Granted 43,948 172.80 65,849 223.61 Vested — — — — Forfeited (5,399) 127.56 (17,252) 141.19 Outstanding as of June 30, 2023 88,140 $ 145.86 227,309 $ 159.98 As of June 30, 2023, unrecognized compensation cost of $35,048 is expected to be expensed over a weighted average period of 2.1 years. Employee Stock Purchase Plan On June 21, 2022, at the annual meeting of stockholders of the Company, the Company’s stockholders approved the ExlService Holdings, Inc. 2022 Employee Stock Purchase Plan (the “2022 ESPP”). The 2022 ESPP allows eligible employees to purchase the Company’s shares of common stock through payroll deductions at a pre-specified discount to the lower of closing price of the Company’s common shares on the date of offering or the last business day of each purchase interval. The dollar amount of shares of common stock that can be purchased under the 2022 ESPP must not exceed 15% of the participating employee’s compensation during the offering period, subject to a cap of $25 per employee per calendar year. The Company has reserved 800,000 shares of common stock for issuance over the term of the 2022 ESPP. The second offering period under the 2022 ESPP commenced on January 1, 2023 with a term of six months. Activity under the Company’s 2022 ESPP is shown below: Number of Shares Total Proceeds Received Shares available for issuance as of December 31, 2022 800,000 Issuance of common stock related to the first offering period (7,636) $ 1,060 Shares available for issuance as of June 30, 2023 792,364 Issuance of common stock related to the second offering period made subsequent to June 30, 2023 26,099 $ 3,800 The ESPP is compensatory and results in compensation expense. The fair value of common stock to be issued under the ESPP was determined using the Black-Scholes option pricing model with the following assumptions: Six months ended June 30, 2023 Dividend yield — Expected life (years) 0.5 Risk free interest rate for expected life 4.7 % Volatility for expected life 38.9 % Discount for illiquidity 10.3 % The weighted average fair value of employee stock purchase rights granted pursuant to the ESPP during the six months ended June 30, 2023 was $25.86.

Related Party Disclosures

Related Party Disclosures	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Related Party Disclosures	Related Party DisclosuresIn April 2022, the Company entered into a service contract for providing analytics services to The Vanguard Group Inc. which beneficially owns more than 10% of the Company’s common stock as of June 30, 2023. During the three months ended June 30, 2023 and 2022, the Company recognized revenues, net of $379 and $574, respectively, related to this service contract. During the six months ended June 30, 2023 and 2022, the Company recognized revenues, net of $1,330 and $574, respectively, related to this service contract. The Company had outstanding accounts receivable, net of $383 and $856, related to this service contract as of June 30, 2023 and December 31, 2022, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Capital Commitments As of June 30, 2023, the Company had committed to spend approximately $6,600 under agreements to purchase property and equipment. This amount is net of capital advances paid which are recognized in unaudited consolidated balance sheets as “Capital work in progress” under “Property and equipment, net.” On June 15, 2023, the Company, along with other limited partners, entered into a limited partnership agreement with the general partner, PNP Financial Services Fund GP I, LLC and initial limited partner and outgoing partner, to form a partnership with the name Plug and Play Financial Services Fund I, L.P. (the “Partnership”) for the primary purpose of making investments in growth-stage technology companies. The Company is committed under the Partnership to make investments up to an amount of $4,000. Other Commitments Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units or under the Software Technology Parks of India or Special Economic Zone scheme promulgated by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. The Company believes, however, that these units have in the past satisfied, and will continue to satisfy, the required conditions. The Company’s operations centers in the Philippines are registered as qualified Philippines Economic Zone Authority units, which provides the Company fiscal incentives on the import of capital goods and local purchase of services and materials. The Company is required to meet certain requirements to retain the incentives. The Company has complied, and intends to continue compliance, with the requirements to avail itself of the incentives. Contingencies The transfer pricing regulations in the countries in which the Company operates require that controlled intercompany transactions be at arm’s-length. Accordingly, the Company determines and documents pricing for controlled intercompany transactions based on an economic analysis as prescribed in the respective regulations. The tax authorities have jurisdiction to review the Company’s transfer pricing. If the Company’s transfer pricing is challenged by the authorities, they could assess additional tax, interest and penalties, thereby impacting the Company’s profitability and cash flows. The Company is currently involved in transfer pricing and related income tax disputes with Indian tax authorities. The aggregate amount demanded by Indian tax authorities (net of advance payments) as of June 30, 2023 and December 31, 2022 is $37,130 and $37,088, respectively. The Company has made payments and/or provided bank guarantees against these demands in the amounts of $7,328 and $7,532, as of June 30, 2023 and December 31, 2022, respectively. The Company believes that its positions will more likely than not be sustained upon final examination by the tax authorities, and accordingly has not accrued any liabilities with respect to these matters in its consolidated financial statements. India’s Value Added Tax (“VAT”) regime ended in June 2017 and was replaced by the current Goods and Service Tax (“GST”) regime. Pursuant to reviewing the Company’s annual VAT filings, the Indian tax authorities raised aggregate VAT demands for tax years 2015 and 2017, in the amounts of $5,572 and $5,526, as of June 30, 2023 and December 31, 2022, respectively. The GST authorities rejected the Company’s refunds claims in the amounts of $$4,305 and $3,866 as of June 30, 2023 and December 31, 2022, respectively. The Company has filed appeals against these matters and believes that it is more likely than not that upon final examination its position will be sustained based on its technical merits. Accordingly, no provision was recognized as of June 30, 2023 and December 31, 2022, respectively. One of the Company’s subsidiaries in India has undergone an assessment with the statutory authority with respect to defined social security contribution plan. Except for some components of the assessment for which the Company has recognized a provision in the financial statements, the Company believes that the amount demanded by such authority is not a meaningful indicator of the potential liabilities of the Company, and that the matter is without merit. The Company is defending against the assessment order and has accordingly instituted an appeal against the order before the relevant tribunal while also making a payment under protest of the amount demanded. As of the reporting date, the Company’s management does not believe that the ultimate assessment will have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. The Company will continue to monitor and evaluate its position based on future events and developments in this matter. In August 2019 and September 2020, the Indian Parliament passed various consolidating labor codes, including the Code on Social Security, 2020 (the “Indian Social Security Code”) which aims to rationalize labor laws relating to employee benefits during employment and post-employment benefits. However, the rules for the Indian Social Security Code are yet to be published and the effective date from which these changes are applicable is yet to be notified. The Company will complete its evaluation once the subject rules are notified and will give appropriate impact in the financial statements in the period in which, the Indian Social Security Code becomes effective and the related rules to determine the financial impact are published. From time to time, the Company, its subsidiaries, and/or their present officers or directors, may be or have been, named as a defendant in litigation matters, including employment-related claims. The plaintiffs in those cases seek damages, including, where applicable, compensatory damages, punitive damages and attorney’s fees. With respect to pending litigation matters as of the reporting date, the Company believes that the damages claimed are without merit, and the Company intends to vigorously defend them. The Company will continuously monitor developments on these matters to assess potential impacts to the financial statements. The outcomes of legal actions are unpredictable and subject to significant uncertainties, and thus it is inherently difficult to determine the likelihood of the Company incurring a material loss or quantification of any such loss. With respect to pending litigation matters as of the reporting date, based on information currently available, including the Company’s assessment of the facts underlying each matter and advice of counsel, the amount or range of reasonably possible losses, if any, cannot be reasonably estimated. Based on the Company’s assessment, including the availability of insurance recoveries, the Company’s management does not believe that currently pending litigation, individually or in aggregate, will have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. The Company will continuously monitor these matters to assess potential impacts to the financial statements.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On June 20, 2023, the Company’s stockholders approved an amendment to the Company’s Amended and Restated Certificate of Incorporation, which upon filing with the State of Delaware, and effectiveness thereof, will effect a 5-for-1 forward stock split of the Company’s common stock (the “2023 Stock Split”) and an increase in the number of authorized shares of the Company’s common stock from 100,000,000 shares to 400,000,000 shares. The par value of each share of common stock, $0.001, shall remain unchanged. The 2023 Stock Split was considered to not have been consummated as the common shares were not trading on Nasdaq Global Select Market on a post-split basis as of the date of issuance of the consolidated financial statements. Pursuant to the 2023 Stock Split, each stockholder of record on July 25, 2023 holding shares of the Company’s common stock will receive four additional shares of the Company’s common stock for every one share held. The additional shares are to be distributed after the close of business on August 1, 2023. All share count and per share amounts in these consolidated financial statements are presented on a pre-split basis. Below are the pro forma weighted average common stock outstanding and earnings per share (basic and diluted) as if 2023 Stock Split had been effective for all years presented: Pro Forma (Unaudited) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Numerator: Net income $ 49,068 $ 35,846 $ 100,399 $ 72,024 Denominator: Basic weighted average common shares outstanding 166,776,770 167,017,055 166,986,130 167,113,090 Dilutive effect of share based awards 1,665,475 2,135,640 2,061,645 2,199,895 Diluted weighted average common shares outstanding 168,442,245 169,152,695 169,047,775 169,312,985 Earnings per share attributable to ExlService Holdings, Inc. stockholders: Basic $ 0.29 $ 0.21 $ 0.60 $ 0.43 Diluted $ 0.29 $ 0.21 $ 0.59 $ 0.43 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 1,249,155 — 897,750 2,705

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net income	$ 49,068	$ 35,846	$ 100,399	$ 72,024

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Preparation	Basis of Preparation and Principles of ConsolidationThe unaudited consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
Principles of Consolidation	The unaudited consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intra-group balances and transactions, and gains and losses arising from intra-group transactions, are eliminated while preparing consolidated financial statements. The Company’s investments in equity affiliates are initially recorded at cost and any excess purchase consideration paid over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee after its acquisition is recognized in the unaudited consolidated statements of income. Accounting policies of the respective individual subsidiaries and equity affiliates are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under U.S. GAAP.
Use of Estimates	Use of EstimatesThe preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the unaudited consolidated financial statements include, but are not limited to, estimates of the fair value of the identifiable intangible assets and contingent consideration, purchase price allocation, including revenue projections and the discount rate applied within the discounted cash flow model for business acquisitions, credit risk of customers, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and variable consideration in a customer contract, expected recoverability from customers with contingent fee arrangements, estimated costs to complete fixed price contracts, recoverability of dues from statutory authorities, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based awards, and debt instruments, assumptions used to calculate stock-based compensation expense, assumptions used to determine the incremental borrowing rate to calculate lease liabilities and right-of-use (“ROU”) assets, lease term to calculate amortization of ROU, depreciation and amortization periods, and recoverability of long-lived assets, goodwill and intangibles.
Recent Accounting Pronouncements and Recently adopted Accounting Pronouncements	Recent Accounting Pronouncements In March 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-01, Leases (“ASC Topic 842”): Common Control Arrangements . This ASU provides guidance in ASC Topic 842 that leasehold improvements associated with common control leases should be (i) amortized by the lessee over the useful life of the leasehold improvements to the common control group, regardless of the lease term, as long as the lessee controls the use of the underlying asset through a lease, and (ii) accounted for as a transfer between entities under common control through an adjustment to equity if and when the lessee no longer controls the use of the underlying asset. The ASU is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted for both interim and annual financial statements that have not yet been issued. When adopted in an interim period, it must be adopted from the beginning of the year that includes that interim period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. (d) Recently adopted Accounting Pronouncements In October 2021, FASB issued ASU No. 2021-08, Business Combinations (“ASC Topic 805”) : Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This ASU provides guidance in ASC Topic 805 to require the acquirer entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contract with Customers , as if it had originated the contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements, if the acquiree prepared financial statements in accordance with U.S. GAAP. The ASU is effective for fiscal years beginning after December 15, 2022. An entity may early adopt the ASU including adoption in an interim period, with retrospective application to all business combinations within the fiscal year that includes such interim period. The adoption of this ASU is applicable for future business combinations.

Segment and Geographical Info_2

Segment and Geographical Information (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Revenues and Cost of Revenues for Company's Reportable Segments	Revenues and cost of revenues for the three months ended June 30, 2023 and 2022, respectively, for each of the reportable segments, are as follows: Three months ended June 30, 2023 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 128,457 $ 27,156 $ 67,200 $ 182,183 $ 404,996 Cost of revenues (1) 84,322 17,540 37,845 113,513 253,220 Gross profit (1) $ 44,135 $ 9,616 $ 29,355 $ 68,670 $ 151,776 Operating expenses 86,965 Foreign exchange gain, net, interest expense and other income, net (255) Income tax expense 15,554 Gain from equity-method investment 66 Net income $ 49,068 (1) Exclusive of depreciation and amortization expense. Three months ended June 30, 2022 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 108,557 $ 23,051 $ 53,873 $ 161,301 $ 346,782 Cost of revenues (1) 70,645 17,694 31,214 101,654 221,207 Gross profit (1) $ 37,912 $ 5,357 $ 22,659 $ 59,647 $ 125,575 Operating expenses 78,494 Foreign exchange gain, net, interest expense and other loss, net (253) Income tax expense 11,125 Gain from equity-method investment 143 Net income $ 35,846 (1) Exclusive of depreciation and amortization expense. Revenues and cost of revenues for the six months ended June 30, 2023 and 2022, respectively, for each of the reportable segments, are as follows: Six months ended June 30, 2023 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 254,393 $ 53,859 $ 133,361 $ 364,026 $ 805,639 Cost of revenues (1) 166,646 36,349 73,815 227,879 504,689 Gross profit (1) $ 87,747 $ 17,510 $ 59,546 $ 136,147 $ 300,950 Operating expenses 176,691 Foreign exchange gain, net, interest expense and other income, net (380) Income tax expense 23,612 Gain from equity-method investment 132 Net income $ 100,399 (1) Exclusive of depreciation and amortization expense. Six months ended June 30, 2022 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 211,823 $ 49,207 $ 104,620 $ 310,340 $ 675,990 Cost of revenues (1) 135,727 35,345 60,427 197,224 428,723 Gross profit (1) $ 76,096 $ 13,862 $ 44,193 $ 113,116 $ 247,267 Operating expenses 156,211 Foreign exchange gain, net, interest expense and other income, net 3,038 Income tax expense 22,327 Gain from equity-method investment 257 Net income $ 72,024 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Digital operations and solutions (1) $ 222,813 $ 185,481 $ 441,613 $ 365,650 Analytics services 182,183 161,301 364,026 310,340 Revenues, net $ 404,996 $ 346,782 $ 805,639 $ 675,990 (1) Digital operations and solutions include revenues of the Company’s Insurance, Healthcare and Emerging Business reportable segments. Refer to the reportable segment disclosure above.
Revenues Based on Geographical Information	The Company attributes the revenues to regions based upon the location of its customers. Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Revenues, net United States $ 340,675 $ 298,520 $ 679,748 $ 580,899 Non-United States United Kingdom 43,648 32,090 85,222 64,863 Rest of World 20,673 16,172 40,669 30,228 Total Non-United States 64,321 48,262 125,891 95,091 Revenues, net $ 404,996 $ 346,782 $ 805,639 $ 675,990
Long-lived Assets Based on Geographical Information	Long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets were as follows: As of June 30, 2023 December 31, 2022 Long-lived assets United States $ 62,181 $ 60,709 India 45,769 50,118 Philippines 23,983 18,406 Rest of World 20,178 8,942 Long-lived assets $ 152,111 $ 138,175

Revenues, net (Tables)

Revenues, net (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Contracts with Customer, Receivables, Liabilities and Revenue Recognized	The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers: As of June 30, 2023 December 31, 2022 Accounts receivable, net $ 288,305 $ 259,222 Contract assets $ 7,632 $ 2,768 Contract liabilities: Deferred revenue (consideration received in advance) $ 18,909 $ 17,079 Consideration received for process transition activities $ 9,122 $ 5,423 Revenue recognized during the three and six months ended June 30, 2023 and 2022, which was included in the contract liabilities balance at the beginning of the respective periods: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Deferred revenue (consideration received in advance) $ 2,990 $ 4,306 $ 15,992 $ 13,870 Consideration received for process transition activities $ 305 $ 298 $ 1,008 $ 664
Contract Acquisition and Fulfillment Costs	The following table provides details of the Company’s contract acquisition and fulfillment costs: Contract Acquisition Costs Three months ended Six months ended Year ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 December 31, 2022 Opening Balance $ 1,994 $ 927 $ 1,095 $ 511 $ 511 Additions 397 180 1,476 727 1,014 Amortization (208) (124) (388) (255) (430) Closing Balance $ 2,183 $ 983 $ 2,183 $ 983 $ 1,095 Contract Fulfillment Costs Three months ended Six months ended Year ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 December 31, 2022 Opening Balance $ 17,873 $ 7,435 $ 13,871 $ 5,795 $ 5,795 Additions 4,225 3,308 8,843 5,485 15,509 Amortization (653) (576) (1,269) (1,113) (7,433) Closing Balance $ 21,445 $ 10,167 $ 21,445 $ 10,167 $ 13,871
Movement in Allowance for Expected Credit Loss	As of June 30, 2023 December 31, 2022 Accounts receivable, including unbilled receivables $ 290,105 $ 260,554 Less: Allowance for expected credit losses (1,800) (1,332) Accounts receivable, net $ 288,305 $ 259,222 The movement in “Allowance for expected credit losses” on customer balances was as follows: Three months ended Six months ended Year ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 December 31, 2022 Opening Balance $ 1,671 $ 588 $ 1,332 $ 573 $ 573 Additions 134 571 477 743 815 Reductions due to write-off of Accounts Receivables (5) (314) (8) (472) (60) Currency translation adjustments — (1) (1) — 4 Closing Balance $ 1,800 $ 844 $ 1,800 $ 844 $ 1,332

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Numerators: Net income $ 49,068 $ 35,846 $ 100,399 $ 72,024 Denominators: Basic weighted average common shares outstanding 33,355,354 33,403,411 33,397,226 33,422,618 Dilutive effect of share-based awards 333,095 427,128 412,329 439,979 Diluted weighted average common shares outstanding 33,688,449 33,830,539 33,809,555 33,862,597 Earnings per share attributable to ExlService Holdings, Inc. stockholders: Basic $ 1.47 $ 1.07 $ 3.01 $ 2.15 Diluted $ 1.46 $ 1.06 $ 2.97 $ 2.13 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 249,831 — 179,550 541 Pro Forma (Unaudited) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Numerator: Net income $ 49,068 $ 35,846 $ 100,399 $ 72,024 Denominator: Basic weighted average common shares outstanding 166,776,770 167,017,055 166,986,130 167,113,090 Dilutive effect of share based awards 1,665,475 2,135,640 2,061,645 2,199,895 Diluted weighted average common shares outstanding 168,442,245 169,152,695 169,047,775 169,312,985 Earnings per share attributable to ExlService Holdings, Inc. stockholders: Basic $ 0.29 $ 0.21 $ 0.60 $ 0.43 Diluted $ 0.29 $ 0.21 $ 0.59 $ 0.43 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 1,249,155 — 897,750 2,705

Other Income_(Loss), net (Table

Other Income/(Loss), net (Tables)	6 Months Ended
	Jun. 30, 2023
Other Income and Expenses [Abstract]
Summary of Other Income/(Loss), net	Other income/(loss), net consists of the following: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Gain on sale and mark-to-market on investments $ 1,095 $ 634 $ 2,739 $ 1,870 Interest and dividend income 1,653 847 3,374 2,217 Others, net (87) (1,655) (297) (1,850) Other income/(loss), net $ 2,661 $ (174) $ 5,816 $ 2,237

Cash, Cash Equivalents and Re_2

Cash, Cash Equivalents and Restricted Cash (Tables)	6 Months Ended
	Jun. 30, 2023
Cash and Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents	For the purposes of unaudited statements of cash flows, cash, cash equivalents and restricted cash consist of the following: As of June 30, 2023 June 30, 2022 December 31, 2022 Cash and cash equivalents $ 93,960 $ 106,304 $ 118,669 Restricted cash (current) 4,628 6,840 4,897 Restricted cash (non-current) 2,072 2,056 2,055 Cash, cash equivalents and restricted cash $ 100,660 $ 115,200 $ 125,621
Restrictions on Cash and Cash Equivalents	For the purposes of unaudited statements of cash flows, cash, cash equivalents and restricted cash consist of the following: As of June 30, 2023 June 30, 2022 December 31, 2022 Cash and cash equivalents $ 93,960 $ 106,304 $ 118,669 Restricted cash (current) 4,628 6,840 4,897 Restricted cash (non-current) 2,072 2,056 2,055 Cash, cash equivalents and restricted cash $ 100,660 $ 115,200 $ 125,621

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Investment	Investments consist of the following: As of June 30, 2023 December 31, 2022 Short-term investments Mutual funds $ 68,891 $ 110,964 Term deposits 87,207 68,063 Total Short-term investments $ 156,098 $ 179,027 Long-term investments Term deposits $ 12,515 $ 31,341 Investment in equity affiliate 3,570 3,438 Total Long-term investments $ 16,085 $ 34,779

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment, net consists of the following: As of Estimated useful lives (Years) June 30, 2023 December 31, 2022 Owned Assets: Network equipment and computers 3-5 $ 141,728 $ 130,218 Software 2-5 99,828 88,487 Leasehold improvements 3-8 40,566 42,890 Office furniture and equipment 3-8 19,938 20,211 Motor vehicles 2-5 738 605 Buildings 30 970 961 Land — 634 629 Capital work in progress — 13,532 14,459 317,934 298,460 Less: Accumulated depreciation and amortization (224,764) (216,132) 93,170 82,328 Right-of-use assets under finance leases*: Network equipment and computers 58 82 Leasehold improvements 611 1,013 Office furniture and equipment 435 662 Motor vehicles 802 742 1,906 2,499 Less: Accumulated depreciation and amortization (1,388) (1,999) 518 500 Property and equipment, net $ 93,688 $ 82,828 *Depreciation on assets held under finance leases are computed using the straight-line method over the shorter of the assets estimated useful lives or the lease term. The depreciation and amortization expense, excluding amortization of acquisition-related intangibles, recognized in the unaudited consolidated statements of income was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Depreciation and amortization expense $ 8,918 $ 9,929 $ 18,256 $ 19,045 The effect of foreign exchange gain/(loss) upon settlement of cash flow hedges recorded under depreciation and amortization expense, was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Effect of foreign exchange gain/(loss) $ (66) $ (5) $ (145) $ 62 Internally developed software costs, included under Software, was as follows: As of June 30, 2023 December 31, 2022 Cost $ 42,478 $ 31,544 Less : Accumulated amortization (20,540) (16,134) Internally developed software, net $ 21,938 $ 15,410 The amortization expense on internally developed software recognized in the unaudited consolidated statements of income was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Amortization expense $ 2,425 $ 1,549 $ 4,400 $ 2,582

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare Emerging Business Analytics Total Balance as of January 1, 2023 $ 49,929 $ 21,875 $ 47,101 $ 286,732 $ 405,637 Currency translation adjustments 119 5 142 — 266 Balance as of June 30, 2023 $ 50,048 $ 21,880 $ 47,243 $ 286,732 $ 405,903
Schedule of Indefinite Lived Intangible Assets	Information regarding the Company’s intangible assets is set forth below: As of June 30, 2023 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 99,146 $ (45,463) $ 53,683 Developed technology 3,542 (2,092) 1,450 Trade names and trademarks 1,700 (1,447) 253 Non-compete agreements 336 (135) 201 104,724 (49,137) 55,587 Indefinite-lived intangible assets: Trade names and trademarks 900 — 900 Total intangible assets $ 105,624 $ (49,137) $ 56,487 As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Finite-lived intangible assets: Customer relationships $ 99,146 $ (39,848) $ 59,298 Developed technology 24,878 (20,902) 3,976 Trade names and trademarks 1,700 (1,303) 397 Non-compete agreements 336 (88) 248 126,060 (62,141) 63,919 Indefinite-lived intangible assets: Trade names and trademarks 900 — 900 Total intangible assets $ 126,960 $ (62,141) $ 64,819
Schedule of Amortization of Intangible Assets	The amortization expense recognized in the unaudited consolidated statements of income was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Amortization expense $ 4,204 $ 4,146 $ 8,353 $ 8,632
Schedule of Finite Lived Intangible Assets Useful Lives	The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 5.0 Developed technology 1.9 Trade names and trademarks (finite lived) 1.1 Non-compete agreements 2.3
Schedule of Estimated Future Amortization of Intangible Assets	Estimated future amortization expense related to finite-lived intangible assets as of June 30, 2023 was as follows: 2023 (July 1 - December 31) $ 6,315 2024 12,140 2025 10,705 2026 10,366 2027 9,364 2028 and thereafter 6,697 Total $ 55,587

Other Current Assets (Tables)

Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Current Assets	Other current assets consist of the following: As of June 30, 2023 December 31, 2022 Prepaid expenses $ 19,811 $ 18,132 Advance income tax, net 17,787 5,716 Receivables from statutory authorities 16,338 15,724 Derivative instruments 5,062 1,526 Advances to suppliers 2,851 1,944 Deferred contract fulfillment costs 2,112 1,178 Contract assets 1,527 904 Others 4,698 5,855 Other current assets $ 70,186 $ 50,979

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets	Other assets consist of the following: As of June 30, 2023 December 31, 2022 Deferred contract fulfillment costs $ 19,333 $ 12,693 Lease deposits 6,925 6,621 Deposits with statutory authorities 6,318 6,276 Contract assets 6,105 1,864 Derivative instruments 5,238 820 Others 4,336 3,795 Other assets $ 48,255 $ 32,069

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consist of the following: As of June 30, 2023 December 31, 2022 Accrued expenses $ 50,714 $ 47,854 Payable to statutory authorities 17,966 20,430 Contingent consideration 13,100 5,000 Accrued capital expenditures 7,021 4,032 Client liabilities 5,179 5,110 Derivative instruments 3,295 10,059 Other current liabilities 7,205 2,867 Accrued expenses and other current liabilities $ 104,480 $ 95,352

Other Non-Current Liabilities (

Other Non-Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Liabilities, Noncurrent [Abstract]
Summary of Other Non-Current Liabilities	Other non-current liabilities consist of the following: As of June 30, 2023 December 31, 2022 Retirement benefits $ 15,265 $ 12,982 Deferred transition revenue 7,981 4,408 Unrecognized tax benefits 2,329 2,329 Derivative instruments 613 6,218 Contingent consideration 589 13,689 Others 1,566 1,666 Other non-current liabilities $ 28,343 $ 41,292

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income/(Loss) (Tables)	6 Months Ended
	Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Loss	The following table sets forth the changes in AOCI during the six months ended June 30, 2023 and 2022: Accumulated Other Comprehensive Income/(Loss) Foreign currency translation gain/(loss) Unrealized gain/(loss) on cash flow hedges Retirement benefits Total Balance as of January 1, 2023 $ (133,139) $ (11,303) $ 299 $ (144,143) Gains recognized during the period 5,177 16,145 — 21,322 Reclassification to net income (1) — 4,229 (48) 4,181 Income tax effects (2) (1,136) (4,334) (37) (5,507) Accumulated other comprehensive income/(loss) as of June 30, 2023 $ (129,098) $ 4,737 $ 214 $ (124,147) Balance as of January 1, 2022 $ (95,437) $ 8,420 $ (2,457) $ (89,474) Losses recognized during the period (30,227) (15,149) — (45,376) Reclassification to net income (1) — (3,448) 304 (3,144) Income tax effects (2) 979 3,733 (92) 4,620 Accumulated other comprehensive income/(loss) as of June 30, 2022 $ (124,685) $ (6,444) $ (2,245) $ (133,374) (1) Refer to Note 17 - Derivatives and Hedge Accounting and Note 20 - Employee Benefit Plans to the unaudited consolidated financial statements for reclassification to net income. (2) These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gain/(loss). Refer to Note 22 - Income Taxes to the unaudited consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value	The following table sets forth the Company’s assets and liabilities that were recognized at fair value: Quoted Prices in Significant Other Significant Other As of June 30, 2023 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 17,972 $ — $ — $ 17,972 Mutual funds** 68,891 — — 68,891 Derivative financial instruments — 10,300 — 10,300 Total $ 86,863 $ 10,300 $ — $ 97,163 Liabilities Derivative financial instruments $ — $ 3,908 $ — $ 3,908 Contingent consideration*** — — 13,689 13,689 Total $ — $ 3,908 $ 13,689 $ 17,597 Quoted Prices in Significant Other Significant Other As of December 31, 2022 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 1,137 $ — $ — $ 1,137 Mutual funds** 110,964 — — 110,964 Derivative financial instruments — 2,346 — 2,346 Total $ 112,101 $ 2,346 $ — $ 114,447 Liabilities Derivative financial instruments $ — $ 16,277 $ — $ 16,277 Contingent consideration*** — — 18,689 18,689 Total $ — $ 16,277 $ 18,689 $ 34,966 * Represents money market funds which are carried at the fair value option under ASC Topic 825 “Financial Instruments”. ** Represents those short-term investments which are carried at the fair value option under ASC Topic 825 “Financial Instruments”. *** Contingent consideration is presented under “Accrued Expenses and Other Current Liabilities” and “Other Non-Current Liabilities,” as applicable, in the consolidated balance sheets.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table summarizes the changes in the fair value of contingent consideration: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Opening balance $ 18,689 $ 9,000 $ 18,689 $9,000 Acquisitions — 1,439 — 1,439 Fair value changes — 1,000 — 1,000 Payments (5,000) — (5,000) — Closing balance $ 13,689 $ 11,439 $ 13,689 $ 11,439

Derivatives and Hedge Account_2

Derivatives and Hedge Accounting (Tables)	6 Months Ended
	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Fair Value of Foreign Currency Exchange Contracts	The following table sets forth the aggregate notional principal amounts of outstanding foreign currency forward contracts for derivatives not designated as hedging instruments: As of Foreign currency forward contracts denominated in: June 30, 2023 December 31, 2022 U. S. dollar (USD) 165,793 163,990 U.K. pound sterling (GBP) 11,235 8,351 Euro (EUR) 3,947 1,956 Australian dollar (AUD) 4,471 1,951 South African ZAR 102,249 — Colombian peso (COP) 2,449,676 — The following table sets forth the fair value of the foreign currency forward contracts and interest rate swaps and their location on the consolidated balance sheets: Derivatives in cash flow hedging Derivatives not designated as hedging As of As of June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Assets: Other current assets $ 4,775 $ 1,271 $ 287 $ 255 Other assets $ 5,238 $ 820 $ — $ — Liabilities: Accrued expenses and other $ 3,197 $ 10,044 $ 98 $ 15 Other non-current liabilities $ 613 $ 6,218 $ — $ —
Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income	The following table sets forth the effect of foreign currency forward contracts and interest rate swaps on AOCI and the unaudited consolidated statements of income: Three months ended June 30, Six months ended June 30, Derivative financial instruments: 2023 2022 2023 2022 Unrealized gain/(loss) recognized in AOCI Derivatives in cash flow hedging relationships $ 8,851 $ (14,632) $ 16,145 $ (15,149) Gain/(loss) recognized in unaudited consolidated statements of income Derivatives not designated as hedging instruments $ (370) $ (5,457) $ 2,158 $ (6,356) The following table sets forth the location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments: Three months ended June 30, 2023 2022 As per unaudited consolidated Gain/(loss) on derivative financial instruments As per unaudited consolidated Gain/(loss) on derivative financial instruments Derivatives in cash flow hedging relationships Location in unaudited consolidated statements of income where gain/(loss) was reclassified from AOCI Cost of revenues $ 253,220 $ (1,141) $ 221,207 $ 1,194 General and administrative expenses $ 45,605 (133) $ 40,434 181 Selling and marketing expenses $ 28,238 (13) $ 23,985 15 Depreciation and amortization expense $ 13,122 (43) $ 14,075 69 Interest expense $ 3,240 166 $ 1,502 — Total before tax (1,164) 1,459 Income tax effects on above 231 (420) Net of tax $ (933) $ 1,039 Derivatives not designated as hedging instruments Location in unaudited consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 324 $ (370) $ 1,423 $ (5,457) $ 324 $ (370) $ 1,423 $ (5,457) The following table sets forth the location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments: Six months ended June 30, 2023 2022 As per unaudited consolidated Gain/(loss) on derivative financial instruments As per unaudited consolidated Gain/(loss) on derivative financial instruments Derivatives in cash flow hedging relationships Location in unaudited consolidated statements of income where gain/(loss) was reclassified from AOCI Cost of revenues $ 504,689 $ (3,896) $ 428,723 $ 2,777 General and administrative expenses $ 92,351 (375) $ 80,379 475 Selling and marketing expenses $ 57,731 (32) $ 48,155 29 Depreciation and amortization expense $ 26,609 (166) $ 27,677 167 Interest expense $ 6,625 240 $ 2,378 — Total before tax (4,229) 3,448 Income tax effects on above 765 (935) Net of tax $ (3,464) $ 2,513 Derivatives not designated as hedging instruments Location in unaudited consolidated statements of income where gain/(loss) was recognized Foreign exchange gain/(loss), net $ 429 $ 2,158 $ 3,179 $ (6,356) $ 429 $ 2,158 $ 3,179 $ (6,356)

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Company's Debt Position	The following table summarizes the Company’s debt position: As of June 30, 2023 December 31, 2022 Revolving credit facility Current portion of long-term borrowings $ 30,000 $ 30,000 Long-term borrowings 190,000 220,000 Total borrowings $ 220,000 $ 250,000
Schedule of Credit Facilities Carried an Effective Interest Rate	The revolving credit facility carried an effective interest rate as shown below: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Effective Interest Rate 6.2 % 2.0 % 6.1 % 1.7 %
Schedule of Maturities of Long-term Debt	Expected payments for all of the Company’s borrowings as of June 30, 2023 were as follows: Revolving credit facility Principal Interest 2023 (July 1 - December 31) $ 30,000 $ 6,216 2024 — 11,522 2025 — 11,522 2026 — 11,522 2027 190,000 4,321 Total $ 220,000 $ 45,103 * Interest payments are based on interest rate prevailing as of June 30, 2023.

Capital Structure (Tables)

Capital Structure (Tables)	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Schedule of Purchase of Common Stock from Employees Withholding Tax Payments Related to Vesting of Restricted Stock	The Company purchased shares of its common stock from employees in connection with withholding tax payments related to the vesting of restricted stock units and performance-based restricted stock units, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Three months ended June 30, 2023 — $ — $ — Three months ended June 30, 2022 — $ — $ — Six months ended June 30, 2023 38,356 $ 6,529 $ 170.22 Six months ended June 30, 2022 27,219 $ 3,191 $ 117.23 (1) The weighted average purchase price per share is based on the closing price of the Company’s common stock on the Nasdaq Global Select Market on the trading day prior to the applicable vesting date of the shares of restricted stock.
Summary of Company's Purchased Shares of its Common Stock, Including Commissions	The Company purchased shares of its common stock, for a total consideration including commissions, under the 2022 Repurchase Program, as below: Shares repurchased Total consideration Weighted average purchase price per share Three months ended June 30, 2023 184,144 $ 29,013 $ 157.56 Three months ended June 30, 2022 205,716 $ 28,806 $ 140.03 Six months ended June 30, 2023 405,169 $ 64,847 $ 160.05 Six months ended June 30, 2022 427,049 $ 57,000 $ 133.47

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Schedule of Changes in Projected Benefit Obligations	Change in Plan Assets Plan assets as of January 1, 2023 $ 14,449 Actual return 692 Employer contribution — Benefits paid* (542) Effect of exchange rate changes 121 Plan assets as of June 30, 2023 $ 14,720 * Benefits payments were substantially made through the plan assets during the six months ended June 30, 2023.
Components of Net Periodic Benefit Cost	Components of net periodic benefit costs recognized in unaudited consolidated statements of income and actuarial (gain)/loss reclassified from AOCI, were as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Service cost $ 953 $ 958 $ 1,909 $ 1,948 Interest cost 393 313 788 636 Expected return on plan assets (264) (221) (527) (449) Amortization of actuarial (gain)/loss, gross of tax (23) 149 (48) 304 Net gratuity cost $ 1,059 $ 1,199 $ 2,122 $ 2,439 Amortization of actuarial (gain)/loss, gross of tax $ (23) $ 149 $ (48) $ 304 Income tax effects on above (18) (45) (37) (92) Amortization of actuarial (gain)/loss, net of tax $ (41) $ 104 $ (85) $ 212
Schedule of Company's Contribution Plan	The Company’s accrual for contribution to the 401(k) Plans was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Contribution to the 401(k) Plans $ 1,178 $ 1,026 $ 3,564 $ 3,043 The Company’s contribution for various defined social security contribution plans on behalf of employees in foreign subsidiaries of the Company was as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Contributions to the defined social security contribution plans $ 5,604 $ 4,549 $ 10,996 $ 8,762

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Schedule of Supplemental Balance Sheet Information	Supplemental balance sheet information As of June 30, 2023 December 31, 2022 Operating Lease Operating lease right-of-use assets $ 58,423 $ 55,347 Operating lease liabilities - Current $ 14,482 $ 14,978 Operating lease liabilities - Non-current 50,575 48,155 Total operating lease liabilities $ 65,057 $ 63,133 Finance Lease Property and equipment, gross $ 1,906 $ 2,499 Accumulated depreciation (1,388) (1,999) Property and equipment, net $ 518 $ 500 Finance lease liabilities - Current $ 167 $ 164 Finance lease liabilities - Non-current 373 355 Total finance lease liabilities $ 540 $ 519
Schedule of Components of Lease Cost	The components of lease cost, which are included in the Company’s unaudited consolidated statements of income, are as follows: Lease cost Three months ended June 30, Six months ended June 30, Finance lease: 2023 2022 2023 2022 Amortization of right-of-use assets $ 39 $ 50 $ 77 $ 88 Interest on lease liabilities 18 14 38 28 57 64 115 116 Operating lease (a) 5,449 5,962 10,332 12,005 Variable lease costs 1,157 1,408 2,164 2,529 Total lease cost $ 6,663 $ 7,434 $ 12,611 $ 14,650 (a) Includes short-term leases, which are immaterial.
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow and other information related to leases are as follows: Six months ended June 30, 2023 2022 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 10,829 $ 11,922 Operating cash outflows for finance leases $ 38 $ 28 Financing cash outflows for finance leases $ 80 $ 75 Right-of-use assets obtained in exchange for new operating lease liabilities $ 10,929 $ 3,540 Right-of-use assets obtained in exchange for new finance lease liabilities $ 91 $ 118 Weighted average remaining lease term (in years) Finance lease 2.7 years 2.5 years Operating lease 5.6 years 5.5 years Weighted average discount rate Finance lease 14.0 % 14.5 % Operating lease 7.3 % 7.0 %
Schedule of Maturities of Operating Lease Liabilities	Maturities of lease liabilities as of June 30, 2023 were as follows: Operating Leases Finance Leases 2023 (July 1 - December 31) $ 9,445 $ 133 2024 17,314 187 2025 12,908 125 2026 11,926 113 2027 9,151 112 2028 and thereafter 20,554 22 Total lease payments 81,298 692 Less: Imputed interest 16,241 152 Present value of lease liabilities $ 65,057 $ 540 Maturities of lease liabilities as of December 31, 2022 were as follows: Operating Leases Finance Leases 2023 $ 18,711 $ 228 2024 14,846 162 2025 10,037 114 2026 8,941 88 2027 6,474 79 2028 and thereafter 19,624 — Total lease payments 78,633 671 Less: Imputed interest 15,500 152 Present value of lease liabilities $ 63,133 $ 519
Schedule of Maturities of Finance Lease Liabilities	Maturities of lease liabilities as of June 30, 2023 were as follows: Operating Leases Finance Leases 2023 (July 1 - December 31) $ 9,445 $ 133 2024 17,314 187 2025 12,908 125 2026 11,926 113 2027 9,151 112 2028 and thereafter 20,554 22 Total lease payments 81,298 692 Less: Imputed interest 16,241 152 Present value of lease liabilities $ 65,057 $ 540 Maturities of lease liabilities as of December 31, 2022 were as follows: Operating Leases Finance Leases 2023 $ 18,711 $ 228 2024 14,846 162 2025 10,037 114 2026 8,941 88 2027 6,474 79 2028 and thereafter 19,624 — Total lease payments 78,633 671 Less: Imputed interest 15,500 152 Present value of lease liabilities $ 63,133 $ 519

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Tax (Deferred) Recognized in Other Comprehensive Income	Deferred income taxes recognized in AOCI were as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Deferred taxes benefit / (expense) recognized on: Unrealized gain/(loss) on cash flow hedges $ (2,269) $ 2,801 $ (3,569) $ 2,798 Reclassification adjustment for cash flow hedges (231) 420 (765) 935 Reclassification adjustment for retirement benefits (18) (45) (37) (92) Foreign currency translation adjustments 2 480 (1,136) 979 Total $ (2,516) $ 3,656 $ (5,507) $ 4,620

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Costs Related to Company's Stock-based Compensation Plan	Stock-based compensation expense by nature of function, as below, are included in the unaudited consolidated statements of income: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Cost of revenues $ 3,341 $ 3,131 $ 6,907 $ 5,772 General and administrative expenses 3,210 5,305 9,035 9,700 Selling and marketing expenses 4,960 4,904 9,976 9,092 Total $ 11,511 $ 13,340 $ 25,918 $ 24,564 Income tax benefit related to share-based compensation (1) $ 2,789 $ 3,216 $ 12,619 $ 6,022 (1) Includes $190 and $14 during the three months ended June 30, 2023 and 2022, respectively, and $12,710 and $3,624 during the six months ended June 30, 2023 and 2022, respectively, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation.
Schedule of Stock Options Activity	Stock options activity under the Company’s stock-based compensation plans is shown below: Number of Stock Weighted Average Aggregate Weighted Average Outstanding as of December 31, 2022 3,093 $ 27.62 $ 362 1.0 Granted 331,336 150.75 — 10.0 Exercised (3,093) 27.62 384 — Forfeited — — — — Outstanding as of June 30, 2023 331,336 $ 150.75 $ 103 10.0 Vested and exercisable as of June 30, 2023 — $ — $ — — Weighted average grant date fair value of Stock options granted during the period $ 60.13
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions	The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: Three and Six months ended June 30, 2023 Dividend yield — Expected life (years) 6.25 Risk free interest rate for expected life 3.8 % Volatility for expected life 32.4 %
Restricted Stock Activity Under Company's Stock Plans	Restricted stock unit activity under the SMP is shown below: Restricted Stock Units (SMP) Number Weighted Average Outstanding as of December 31, 2022 47,623 $ 124.76 Granted — — Vested — — Forfeited (4,177) 124.76 Outstanding as of June 30, 2023 43,446 $ 124.76
Schedule of Restricted Stock Unit Activity	Restricted stock unit activity under the Company’s stock-based compensation plans is shown below: Restricted Stock Units Number Weighted Average Outstanding as of December 31, 2022* 923,126 $ 98.71 Granted 238,431 171.38 Vested (307,060) 90.47 Forfeited (61,323) 104.53 Outstanding as of June 30, 2023* 793,174 $ 123.29 * As of June 30, 2023 and December 31, 2022 restricted stock units vested for which the underlying common stock is yet to be issued are 130,528 and 174,490 respectively.
Schedule of Performance Based Stock Awards Activity	PRSU activity under the Company’s stock plans is shown below: Revenue Based PRSUs Market Condition Based PRSUs Number Weighted Average Number Weighted Average Outstanding as of December 31, 2022 49,591 $ 119.99 178,712 $ 134.72 Granted 43,948 172.80 65,849 223.61 Vested — — — — Forfeited (5,399) 127.56 (17,252) 141.19 Outstanding as of June 30, 2023 88,140 $ 145.86 227,309 $ 159.98
Schedule of Share-Based Compensation, Employee Stock Purchase Plan, Activity	Activity under the Company’s 2022 ESPP is shown below: Number of Shares Total Proceeds Received Shares available for issuance as of December 31, 2022 800,000 Issuance of common stock related to the first offering period (7,636) $ 1,060 Shares available for issuance as of June 30, 2023 792,364 Issuance of common stock related to the second offering period made subsequent to June 30, 2023 26,099 $ 3,800
Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	The fair value of common stock to be issued under the ESPP was determined using the Black-Scholes option pricing model with the following assumptions: Six months ended June 30, 2023 Dividend yield — Expected life (years) 0.5 Risk free interest rate for expected life 4.7 % Volatility for expected life 38.9 % Discount for illiquidity 10.3 %

Subsequent Events (Tables)

Subsequent Events (Tables)	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Numerators: Net income $ 49,068 $ 35,846 $ 100,399 $ 72,024 Denominators: Basic weighted average common shares outstanding 33,355,354 33,403,411 33,397,226 33,422,618 Dilutive effect of share-based awards 333,095 427,128 412,329 439,979 Diluted weighted average common shares outstanding 33,688,449 33,830,539 33,809,555 33,862,597 Earnings per share attributable to ExlService Holdings, Inc. stockholders: Basic $ 1.47 $ 1.07 $ 3.01 $ 2.15 Diluted $ 1.46 $ 1.06 $ 2.97 $ 2.13 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 249,831 — 179,550 541 Pro Forma (Unaudited) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Numerator: Net income $ 49,068 $ 35,846 $ 100,399 $ 72,024 Denominator: Basic weighted average common shares outstanding 166,776,770 167,017,055 166,986,130 167,113,090 Dilutive effect of share based awards 1,665,475 2,135,640 2,061,645 2,199,895 Diluted weighted average common shares outstanding 168,442,245 169,152,695 169,047,775 169,312,985 Earnings per share attributable to ExlService Holdings, Inc. stockholders: Basic $ 0.29 $ 0.21 $ 0.60 $ 0.43 Diluted $ 0.29 $ 0.21 $ 0.59 $ 0.43 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 1,249,155 — 897,750 2,705

Segment and Geographical Info_3

Segment and Geographical Information - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023 operating_segment
Segment Reporting [Abstract]
Number of operating segments	4

Segment and Geographical Info_4

Segment and Geographical Information - Revenues and Cost of Revenues for Company's Reportable Segments (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net		$ 404,996	$ 346,782	$ 805,639	$ 675,990
Cost of revenues	[1]	253,220	221,207	504,689	428,723
Gross profit	[1]	151,776	125,575	300,950	247,267
Operating expenses		86,965	78,494	176,691	156,211
Foreign exchange gain, net, interest expense and other income, net		(255)	(253)	(380)	3,038
Income tax expense		15,554	11,125	23,612	22,327
Gain from equity-method investment		66	143	132	257
Net income attributable to ExlService Holdings, Inc. stockholders		49,068	35,846	100,399	72,024
Digital operations and solutions
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net		222,813	185,481	441,613	365,650
Analytics services
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net		182,183	161,301	364,026	310,340
Insurance
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net		128,457	108,557	254,393	211,823
Cost of revenues		84,322	70,645	166,646	135,727
Gross profit		44,135	37,912	87,747	76,096
Healthcare
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net		27,156	23,051	53,859	49,207
Cost of revenues		17,540	17,694	36,349	35,345
Gross profit		9,616	5,357	17,510	13,862
Emerging Business
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net		67,200	53,873	133,361	104,620
Cost of revenues		37,845	31,214	73,815	60,427
Gross profit		29,355	22,659	59,546	44,193
Analytics
Revenues and cost of revenues for Company's reportable segments [Line Items]
Revenues, net		182,183	161,301	364,026	310,340
Cost of revenues		113,513	101,654	227,879	197,224
Gross profit		$ 68,670	$ 59,647	$ 136,147	$ 113,116
[1]Exclusive of depreciation and amortization expense.

Segment and Geographical Info_5

Segment and Geographical Information - Revenues based on Geographical Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, net	$ 404,996	$ 346,782	$ 805,639	$ 675,990
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, net	340,675	298,520	679,748	580,899
Total Non-United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, net	64,321	48,262	125,891	95,091
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, net	43,648	32,090	85,222	64,863
Rest of World
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues, net	$ 20,673	$ 16,172	$ 40,669	$ 30,228

Segment and Geographical Info_6

Segment and Geographical Information - Property, Plant and Equipment, Net Based On Geographical Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 152,111	$ 138,175
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	62,181	60,709
India
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	45,769	50,118
Philippines
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	23,983	18,406
Rest of World
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 20,178	$ 8,942

Revenues, net - Contracts with

Revenues, net - Contracts with Customer, Receivables, Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 288,305	$ 259,222
Contract assets	7,632	2,768
Contract liabilities:
Deferred revenue (consideration received in advance)	18,909	17,079
Consideration received for process transition activities	$ 9,122	$ 5,423

Revenues, net - Additional Info

Revenues, net - Additional Information (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable not billed	$ 148,370,000	$ 126,027,000
Contract Acquisition Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impairment loss in relation to costs capitalized	0	0
Contract Fulfillment Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impairment loss in relation to costs capitalized	$ 0	$ 0

Revenues, net - Contract with C

Revenues, net - Contract with Customer Revenue Recognized (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Deferred revenue (consideration received in advance)	$ 2,990	$ 4,306	$ 15,992	$ 13,870
Consideration received for process transition activities	$ 305	$ 298	$ 1,008	$ 664

Revenues, net - Contract Acquis

Revenues, net - Contract Acquisition and Fulfillment Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Contract Acquisition Costs
Increase (Decrease) In Capitalized Contract Costs [Roll Forward]
Opening Balance	$ 1,994	$ 927	$ 1,095	$ 511	$ 511
Additions	397	180	1,476	727	1,014
Amortization	(208)	(124)	(388)	(255)	(430)
Closing Balance	2,183	983	2,183	983	1,095
Contract Fulfillment Costs
Increase (Decrease) In Capitalized Contract Costs [Roll Forward]
Opening Balance	17,873	7,435	13,871	5,795	5,795
Additions	4,225	3,308	8,843	5,485	15,509
Amortization	(653)	(576)	(1,269)	(1,113)	(7,433)
Closing Balance	$ 21,445	$ 10,167	$ 21,445	$ 10,167	$ 13,871

Revenues, net - Accounts Receiv

Revenues, net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Accounts receivable, including unbilled receivables	$ 290,105		$ 260,554
Less: Allowance for expected credit losses	(1,800)	$ (1,671)	(1,332)	$ (844)	$ (588)	$ (573)
Accounts receivable, net	$ 288,305		$ 259,222

Revenues, net - Allowance for C

Revenues, net - Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Opening Balance	$ 1,671	$ 588	$ 1,332	$ 573	$ 573
Additions	134	571	477	743	815
Reductions due to write-off of Accounts Receivables	(5)	(314)	(8)	(472)	(60)
Currency translation adjustments	0	(1)	(1)	0	4
Closing Balance	$ 1,800	$ 844	$ 1,800	$ 844	$ 1,332

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerators:
Net income	$ 49,068	$ 35,846	$ 100,399	$ 72,024
Denominators:
Basic weighted average common shares outstanding (in shares)	33,355,354	33,403,411	33,397,226	33,422,618
Dilutive effect of share-based awards (in shares)	333,095	427,128	412,329	439,979
Diluted weighted average common shares outstanding (in shares)	33,688,449	33,830,539	33,809,555	33,862,597
Earnings per share attributable to ExlService Holdings, Inc. stockholders:
Basic (in dollars per share)	$ 1.47	$ 1.07	$ 3.01	$ 2.15
Diluted (in dollars per share)	$ 1.46	$ 1.06	$ 2.97	$ 2.13
Weighted average potentially dilutive considered anti-dilutive and not included in computing diluted earnings per share (in shares)	249,831		179,550	541

Other Income_(Loss), net - Summ

Other Income/(Loss), net - Summary of Other Income, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Other Income and Expenses [Abstract]
Gain on sale and mark-to-market on investments	$ 1,095	$ 634	$ 2,739	$ 1,870
Interest and dividend income	1,653	847	3,374	2,217
Others, net	(87)	(1,655)	(297)	(1,850)
Other income/(loss), net	$ 2,661	$ (174)	$ 5,816	$ 2,237

Cash, Cash Equivalents and Re_3

Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 93,960	$ 118,669	$ 106,304
Restricted cash (current)	4,628	4,897	6,840
Restricted cash (non-current)	2,072	2,055	2,056
Cash, cash equivalents and restricted cash	$ 100,660	$ 125,621	$ 115,200	$ 143,810

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Investments, All Other Investments [Abstract]
Mutual funds	$ 68,891	$ 110,964
Term deposits	87,207	68,063
Short-term investments	156,098	179,027
Term deposits	12,515	31,341
Investment in equity affiliate	3,570	3,438
Long-term investments	$ 16,085	$ 34,779

Property and Equipment, net - S

Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Owned Assets:
Owned assets, gross	$ 317,934	$ 298,460
Less: Accumulated depreciation and amortization	(224,764)	(216,132)
Owned assets, net	93,170	82,328
Right-of-use assets under finance leases*:
Finance lease, right of use asset, gross	1,906	2,499
Less: Accumulated depreciation and amortization	(1,388)	(1,999)
Property and equipment, net	518	500
Property and equipment, net	93,688	82,828
Network equipment and computers
Owned Assets:
Owned assets, gross	141,728	130,218
Right-of-use assets under finance leases*:
Finance lease, right of use asset, gross	58	82
Software
Owned Assets:
Owned assets, gross	99,828	88,487
Leasehold improvements
Owned Assets:
Owned assets, gross	40,566	42,890
Right-of-use assets under finance leases*:
Finance lease, right of use asset, gross	611	1,013
Office furniture and equipment
Owned Assets:
Owned assets, gross	19,938	20,211
Right-of-use assets under finance leases*:
Finance lease, right of use asset, gross	435	662
Motor vehicles
Owned Assets:
Owned assets, gross	738	605
Right-of-use assets under finance leases*:
Finance lease, right of use asset, gross	$ 802	742
Buildings
Owned Assets:
Estimated useful lives (Years)	30 years
Owned assets, gross	$ 970	961
Land
Owned Assets:
Owned assets, gross	634	629
Capital work in progress
Owned Assets:
Owned assets, gross	$ 13,532	$ 14,459
Minimum | Network equipment and computers
Owned Assets:
Estimated useful lives (Years)	3 years
Minimum | Software
Owned Assets:
Estimated useful lives (Years)	2 years
Minimum | Leasehold improvements
Owned Assets:
Estimated useful lives (Years)	3 years
Minimum | Office furniture and equipment
Owned Assets:
Estimated useful lives (Years)	3 years
Minimum | Motor vehicles
Owned Assets:
Estimated useful lives (Years)	2 years
Maximum | Network equipment and computers
Owned Assets:
Estimated useful lives (Years)	5 years
Maximum | Software
Owned Assets:
Estimated useful lives (Years)	5 years
Maximum | Leasehold improvements
Owned Assets:
Estimated useful lives (Years)	8 years
Maximum | Office furniture and equipment
Owned Assets:
Estimated useful lives (Years)	8 years
Maximum | Motor vehicles
Owned Assets:
Estimated useful lives (Years)	5 years

Property and Equipment, net - D

Property and Equipment, net - Depreciation and Amortization Expense and Effect of Foreign Exchange Gain/Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 8,918	$ 9,929	$ 18,256	$ 19,045
Depreciation and Amortization
Property, Plant and Equipment [Line Items]
Effect of foreign exchange gain/(loss)	$ (66)	$ (5)	$ (145)	$ 62

Property and Equipment, net - I

Property and Equipment, net - Internally Developed Software Costs, Included under Software (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Cost	$ 42,478		$ 42,478		$ 31,544
Less : Accumulated amortization	(20,540)		(20,540)		(16,134)
Internally developed software, net	21,938		21,938		$ 15,410
Amortization expense	$ 2,425	$ 1,549	$ 4,400	$ 2,582

Property and Equipment, net - A

Property and Equipment, net - Additional Information (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Long-lived assets impairment charges	$ 0	$ 0

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Summary of Company's Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Beginning Balance	$ 405,637
Currency translation adjustments	266
Ending Balance	405,903
Insurance
Goodwill [Roll Forward]
Beginning Balance	49,929
Currency translation adjustments	119
Ending Balance	50,048
Healthcare
Goodwill [Roll Forward]
Beginning Balance	21,875
Currency translation adjustments	5
Ending Balance	21,880
Emerging Business
Goodwill [Roll Forward]
Beginning Balance	47,101
Currency translation adjustments	142
Ending Balance	47,243
Analytics
Goodwill [Roll Forward]
Beginning Balance	286,732
Currency translation adjustments	0
Ending Balance	$ 286,732

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Summary of Company's Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite-lived intangible assets:
Gross Carrying Amount	$ 104,724	$ 126,060
Accumulated Amortization	(49,137)	(62,141)
Total	55,587	63,919
Indefinite-lived intangible assets:
Total intangible assets, gross carrying amount	105,624	126,960
Total intangible assets, net carrying amount	56,487	64,819
Trade names and trademarks
Indefinite-lived intangible assets:
Trade names and trademarks	900	900
Customer relationships
Finite-lived intangible assets:
Gross Carrying Amount	99,146	99,146
Accumulated Amortization	(45,463)	(39,848)
Total	53,683	59,298
Developed technology
Finite-lived intangible assets:
Gross Carrying Amount	3,542	24,878
Accumulated Amortization	(2,092)	(20,902)
Total	1,450	3,976
Trade names and trademarks
Finite-lived intangible assets:
Gross Carrying Amount	1,700	1,700
Accumulated Amortization	(1,447)	(1,303)
Total	253	397
Non-compete agreements
Finite-lived intangible assets:
Gross Carrying Amount	336	336
Accumulated Amortization	(135)	(88)
Total	$ 201	$ 248

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 4,204	$ 4,146	$ 8,353	$ 8,632

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Weighted Average Life of Intangible Assets (Details)	Jun. 30, 2023
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	5 years
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	1 year 10 months 24 days
Trade names and trademarks (finite lived)
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	1 year 1 month 6 days
Non-compete agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	2 years 3 months 18 days

Goodwill and Other Intangible_7

Goodwill and Other Intangible Assets - Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (July 1 - December 31)	$ 6,315
2024	12,140
2025	10,705
2026	10,366
2027	9,364
2028 and thereafter	6,697
Total	$ 55,587	$ 63,919

Other Current Assets - Schedule

Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 19,811	$ 18,132
Receivables from statutory authorities	16,338	15,724
Advance income tax, net	17,787	5,716
Derivative instruments	5,062	1,526
Advances to suppliers	2,851	1,944
Deferred contract fulfillment costs	2,112	1,178
Contract assets	1,527	904
Others	4,698	5,855
Other current assets	$ 70,186	$ 50,979

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deferred contract fulfillment costs	$ 19,333	$ 12,693
Lease deposits	6,925	6,621
Deposits with statutory authorities	6,318	6,276
Contract assets	6,105	1,864
Derivative instruments	5,238	820
Others	4,336	3,795
Other assets	$ 48,255	$ 32,069

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued expenses	$ 50,714	$ 47,854
Payable to statutory authorities	17,966	20,430
Contingent consideration	13,100	5,000
Client liabilities	5,179	5,110
Derivative instruments	3,295	10,059
Accrued capital expenditures	7,021	4,032
Other current liabilities	7,205	2,867
Accrued expenses and other current liabilities	$ 104,480	$ 95,352

Other Non-Current Liabilities -

Other Non-Current Liabilities - Summary of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Liabilities, Noncurrent [Abstract]
Retirement benefits	$ 15,265	$ 12,982
Deferred transition revenue	7,981	4,408
Derivative instruments	613	6,218
Unrecognized tax benefits	2,329	2,329
Contingent consideration	589	13,689
Others	1,566	1,666
Other non-current liabilities	$ 28,343	$ 41,292

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income/(Loss) - Summary of Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance		$ 795,222	$ 700,341	$ 758,179	$ 693,156
Gain (losses) recognized during the period				21,322	(45,376)
Reclassification to net income				4,181	(3,144)
Income tax effects	[1]	(2,516)	3,656	(5,507)	4,620
Ending balance		834,214	685,653	834,214	685,653
Foreign currency translation gain/(loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance				(133,139)	(95,437)
Gain (losses) recognized during the period				5,177	(30,227)
Reclassification to net income				0	0
Income tax effects				(1,136)	979
Ending balance		(129,098)	(124,685)	(129,098)	(124,685)
Unrealized gain/(loss) on cash flow hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance				(11,303)	8,420
Gain (losses) recognized during the period				16,145	(15,149)
Reclassification to net income				4,229	(3,448)
Income tax effects				(4,334)	3,733
Ending balance		4,737	(6,444)	4,737	(6,444)
Retirement benefits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance				299	(2,457)
Gain (losses) recognized during the period				0	0
Reclassification to net income				(48)	304
Income tax effects				(37)	(92)
Ending balance		214	(2,245)	214	(2,245)
Total
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance		(131,487)	(98,306)	(144,143)	(89,474)
Ending balance		$ (124,147)	$ (133,374)	$ (124,147)	$ (133,374)
[1]These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gain/(loss). Refer to Note 22 - Income Taxes to the unaudited consolidated financial statements.

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets
Mutual funds	$ 68,891	$ 110,964
Recurring
Assets
Cash equivalents - Money market funds	17,972	1,137
Mutual funds	68,891	110,964
Derivative financial instruments	10,300	2,346
Total	97,163	114,447
Liabilities
Derivative financial instruments	3,908	16,277
Contingent consideration	13,689	18,689
Total	17,597	34,966
Recurring | (Level 1)
Assets
Cash equivalents - Money market funds	17,972	1,137
Mutual funds	68,891	110,964
Derivative financial instruments	0	0
Total	86,863	112,101
Liabilities
Derivative financial instruments	0	0
Contingent consideration	0	0
Total	0	0
Recurring | (Level 2)
Assets
Cash equivalents - Money market funds	0	0
Mutual funds	0	0
Derivative financial instruments	10,300	2,346
Total	10,300	2,346
Liabilities
Derivative financial instruments	3,908	16,277
Contingent consideration	0	0
Total	3,908	16,277
Recurring | (Level 3)
Assets
Cash equivalents - Money market funds	0	0
Mutual funds	0	0
Derivative financial instruments	0	0
Total	0	0
Liabilities
Derivative financial instruments	0	0
Contingent consideration	13,689	18,689
Total	$ 13,689	$ 18,689

Fair Value Measurements - Chang

Fair Value Measurements - Changes in the fair value of contingent consideration (Details) - Contingent Consideration - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance, contingent consideration	$ 18,689	$ 9,000	$ 18,689	$ 9,000
Acquisitions	0	1,439	0	1,439
Fair value changes	0	1,000	0	1,000
Payments	(5,000)	0	(5,000)	0
Ending balance, contingent consideration	$ 13,689	$ 11,439	$ 13,689	$ 11,439

Derivatives and Hedge Account_3

Derivatives and Hedge Accounting - Additional Information (Details) € in Thousands, £ in Thousands, R in Thousands, $ in Thousands, $ in Thousands, $ in Thousands

6 Months Ended

Jun. 30, 2023 USD ($)

Jun. 30, 2023 GBP (£)

Jun. 30, 2023 EUR (€)

Jun. 30, 2023 AUD ($)

Jun. 30, 2023 ZAR (R)

Jun. 30, 2023 COP ($)

Dec. 31, 2022 USD ($)

Dec. 31, 2022 GBP (£)

Dec. 31, 2022 EUR (€)

Dec. 31, 2022 AUD ($)

Dec. 31, 2022 ZAR (R)

Dec. 31, 2022 COP ($)

Derivative Instruments, Gain (Loss) [Line Items]

Cash flow hedge gain (loss) to be reclassified within twelve months

$ 1,578

Maximum outstanding term of the cash flow hedges

39 months

Foreign Exchange Contract [Member] | Derivatives not designated as hedging instruments

Derivative Instruments, Gain (Loss) [Line Items]

Foreign exchange contracts outstanding

$ 165,793

£ 11,235

€ 3,947

$ 4,471

R 102,249

$ 2,449,676

$ 163,990

£ 8,351

€ 1,956

$ 1,951

R 0

$ 0

Foreign Exchange Contract [Member] | Cash flow hedge | Derivatives Designated as Hedging Instruments

Derivative Instruments, Gain (Loss) [Line Items]

Foreign exchange contracts outstanding

831,250

841,620

Interest Rate Swap | Cash flow hedge | Derivatives Designated as Hedging Instruments

Derivative Instruments, Gain (Loss) [Line Items]

Foreign exchange contracts outstanding

$ 75

$ 75

Derivatives and Hedge Account_4

Derivatives and Hedge Accounting - Foreign Currency Forward Contracts (Details) € in Thousands, £ in Thousands, R in Thousands, $ in Thousands, $ in Thousands, $ in Thousands

Jun. 30, 2023 USD ($)

Jun. 30, 2023 GBP (£)

Jun. 30, 2023 EUR (€)

Jun. 30, 2023 AUD ($)

Jun. 30, 2023 ZAR (R)

Jun. 30, 2023 COP ($)

Dec. 31, 2022 USD ($)

Dec. 31, 2022 GBP (£)

Dec. 31, 2022 EUR (€)

Dec. 31, 2022 AUD ($)

Dec. 31, 2022 ZAR (R)

Dec. 31, 2022 COP ($)

Foreign Exchange Contract [Member] | Derivatives not designated as hedging instruments

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Foreign exchange contracts outstanding

$ 165,793

£ 11,235

€ 3,947

$ 4,471

R 102,249

$ 2,449,676

$ 163,990

£ 8,351

€ 1,956

$ 1,951

R 0

$ 0

Derivatives and Hedge Account_5

Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Derivatives Designated as Hedging Instruments | Other current assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset	$ 4,775	$ 1,271
Derivatives Designated as Hedging Instruments | Other assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset	5,238	820
Derivatives Designated as Hedging Instruments | Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability	3,197	10,044
Derivatives Designated as Hedging Instruments | Other non-current liabilities
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability	613	6,218
Derivatives not designated as hedging instruments | Other current assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset	287	255
Derivatives not designated as hedging instruments | Other assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset	0	0
Derivatives not designated as hedging instruments | Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability	98	15
Derivatives not designated as hedging instruments | Other non-current liabilities
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability	$ 0	$ 0

Derivatives and Hedge Account_6

Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gain/(loss) recognized in AOCI	$ 8,851	$ (14,632)	$ 16,145	$ (15,149)
Gain/(loss) recognized in unaudited consolidated statements of income	324	1,423	429	3,179
Cash flow hedge | Derivatives in cash flow hedging relationships
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gain/(loss) recognized in AOCI	8,851	(14,632)	16,145	(15,149)
Fair value hedge | Gain/ (loss) on foreign currency exchange contracts | Derivatives not designated as hedging instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) recognized in unaudited consolidated statements of income	$ (370)	$ (5,457)	$ 2,158	$ (6,356)

Derivatives and Hedge Account_7

Derivatives and Hedge Accounting - Location of Gain or Loss Recognized (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Cost of revenues	[1]	$ 253,220	$ 221,207	$ 504,689	$ 428,723
General and administrative expenses		45,605	40,434	92,351	80,379
Selling and marketing expenses		28,238	23,985	57,731	48,155
Depreciation and amortization expense		13,122	14,075	26,609	27,677
Interest expense		3,240	1,502	6,625	2,378
Income before income tax expense and earnings from equity affiliates		64,556	46,828	123,879	94,094
Income tax effects on above		(15,554)	(11,125)	(23,612)	(22,327)
Net income attributable to ExlService Holdings, Inc. stockholders		49,068	35,846	100,399	72,024
Foreign exchange gain/(loss), net		324	1,423	429	3,179
Gain/ (loss) on foreign currency exchange contracts | Derivatives in cash flow hedging relationships | Cash flow hedge
Derivative Instruments, Gain (Loss) [Line Items]
Cost of revenues		(1,141)	1,194	(3,896)	2,777
General and administrative expenses		(133)	181	(375)	475
Selling and marketing expenses		(13)	15	(32)	29
Depreciation and amortization expense		(43)	69	(166)	167
Interest expense		166	0	240	0
Income before income tax expense and earnings from equity affiliates		(1,164)	1,459	(4,229)	3,448
Income tax effects on above		231	(420)	765	(935)
Net income attributable to ExlService Holdings, Inc. stockholders		(933)	1,039	(3,464)	2,513
Gain/ (loss) on foreign currency exchange contracts | Derivatives not designated as hedging instruments | Fair value hedge
Derivative Instruments, Gain (Loss) [Line Items]
Foreign exchange gain/(loss), net		$ (370)	$ (5,457)	$ 2,158	$ (6,356)
[1]Exclusive of depreciation and amortization expense.

Borrowings - Company's Debt Pos

Borrowings - Company's Debt Position (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Current portion of long-term borrowings	$ 30,000	$ 30,000
Long-term borrowings, less current portion	190,000	220,000
Revolving credit facility
Debt Instrument [Line Items]
Current portion of long-term borrowings	30,000	30,000
Long-term borrowings, less current portion	190,000	220,000
Total borrowings	$ 220,000	$ 250,000

Borrowings - Additional Informa

Borrowings - Additional Information (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Apr. 18, 2022
Credit Facilities [Line Items]
Letters of credit outstanding	$ 461,000	$ 461,000
Revolving credit facility
Credit Facilities [Line Items]
Unamortized debt issuance costs	1,040,000	$ 1,177,000
Revolving credit facility | New Credit Agreement
Credit Facilities [Line Items]
Maximum borrowing capacity	$ 300,000,000
Revolving credit facility | Credit Agreement
Credit Facilities [Line Items]
Maximum borrowing capacity			$ 400,000,000
Line of credit facility option for additional borrowing capacity			$ 200,000,000

Borrowings - Credit Facilities

Borrowings - Credit Facilities Carried an Effective Interest Rate (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revolving credit facility | New Credit Agreement
Debt Instrument [Line Items]
Effective Interest Rate	6.20%	2%	6.10%	1.70%

Borrowings - Principle Maturiti

Borrowings - Principle Maturities of Borrowings and Credit Arrangements (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Principal Payments
Debt Instrument [Line Items]
2023 (July 1 - December 31)	$ 30,000
2024	0
2025	0
2026	0
2027	190,000
Total	220,000
Interest Payments
Debt Instrument [Line Items]
2023 (July 1 - December 31)	6,216
2024	11,522
2025	11,522
2026	11,522
2027	4,321
Total	$ 45,103

Capital Structure - Additional

Capital Structure - Additional Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 class_of_common_stock	Oct. 05, 2021 USD ($)
Equity, Class of Treasury Stock [Line Items]
Number of classes of common stock outstanding | class_of_common_stock	1
2022 Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock authorized, maximum | $		$ 300,000

Capital Structure - Purchase of

Capital Structure - Purchase of Common Stock from Employees Withholding Tax Payments Related to Vesting of Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Equity [Abstract]
Shares repurchased (in shares)	0	0	38,356	27,219
Total consideration	$ 0	$ 0	$ 6,529	$ 3,191
Weighted average purchase price per share (in dollars per share)	$ 0	$ 0	$ 170.22	$ 117.23

Capital Structure - Purchased S

Capital Structure - Purchased Shares of its Common Stock, Including Commissions (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Equity [Abstract]
Shares repurchased (in shares)	184,144	205,716	405,169	427,049
Total consideration	$ 29,013	$ 28,806	$ 64,847	$ 57,000
Weighted average purchase price per share (in dollars per share)	$ 157.56	$ 140.03	$ 160.05	$ 133.47

Employee Benefit Plans - Additi

Employee Benefit Plans - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023
Retirement Benefits [Abstract]
Expected return on plan assets, percentage	7%
Discretionary contributions towards 401(k) plan, maximum percentage	3%

Employee Benefit Plans - Change

Employee Benefit Plans - Change in Plan Assets (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Change in Plan Assets
Plan assets as of January 1, 2023	$ 14,449
Actual return	692
Employer contribution	0
Benefits paid*	(542)
Effect of exchange rate changes	121
Plan assets as of June 30, 2023	$ 14,720

Employee Benefit Plans - Net Gr

Employee Benefit Plans - Net Gratuity Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Retirement Benefits [Abstract]
Service cost	$ 953	$ 958	$ 1,909	$ 1,948
Interest cost	393	313	788	636
Expected return on plan assets	(264)	(221)	(527)	(449)
Amortization of actuarial (gain)/loss, gross of tax	(23)	149	(48)	304
Net gratuity cost	1,059	1,199	2,122	2,439
Income tax effects on above	(18)	(45)	(37)	(92)
Amortization of actuarial (gain)/loss, net of tax	$ (41)	$ 104	$ (85)	$ 212

Employee Benefit Plans - Contri

Employee Benefit Plans - Contribution Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Retirement Benefits [Abstract]
Contribution to the 401(k) Plans	$ 1,178	$ 1,026	$ 3,564	$ 3,043
Contributions to the defined social security contribution plans	$ 5,604	$ 4,549	$ 10,996	$ 8,762

Leases - Balance Sheet Informat

Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Operating Lease
Operating lease right-of-use assets	$ 58,423	$ 55,347
Operating lease liabilities - Current	14,482	14,978
Operating lease liabilities - Non-current	50,575	48,155
Present value of lease liabilities	65,057	63,133
Finance Lease
Property and equipment, gross	1,906	2,499
Accumulated depreciation	(1,388)	(1,999)
Property and equipment, net	518	500
Finance lease liabilities - Current	167	164
Finance lease liabilities - Non-current	373	355
Total finance lease liabilities	$ 540	$ 519

Leases - Components of Lease Co

Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Finance lease:
Amortization of right-of-use assets	$ 39	$ 50	$ 77	$ 88
Interest on lease liabilities	18	14	38	28
Total finance lease cost	57	64	115	116
Operating lease	5,449	5,962	10,332	12,005
Variable lease costs	1,157	1,408	2,164	2,529
Total lease cost	$ 6,663	$ 7,434	$ 12,611	$ 14,650

Leases - Cash Flow and Other In

Leases - Cash Flow and Other Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash payments for amounts included in the measurement of lease liabilities :
Operating cash outflows for operating leases	$ 10,829	$ 11,922
Operating cash outflows for finance leases	38	28
Financing cash outflows for finance leases	80	75
Right-of-use assets obtained in exchange for new operating lease liabilities	10,929	3,540
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 91	$ 118
Weighted average remaining lease term (in years)
Finance lease	2 years 8 months 12 days	2 years 6 months
Operating lease	5 years 7 months 6 days	5 years 6 months
Weighted average discount rate
Finance lease	14%	14.50%
Operating lease	7.30%	7%

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Reduction in lease liabilities	$ 2,466	$ (263)

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Operating Leases
2023 (July 1 - December 31)	$ 9,445
2024	17,314	$ 18,711
2025	12,908	14,846
2026	11,926	10,037
2027	9,151	8,941
2028 and thereafter	20,554
Total lease payments	81,298	78,633
Less: Imputed interest	16,241	15,500
Present value of lease liabilities	65,057	63,133
Finance Leases
2023 (July 1 - December 31)	133
2024	187	228
2025	125	162
2026	113	114
2027	112	88
2028 and thereafter	22
Total lease payments	692	671
Less: Imputed interest	152	152
Present value of lease liabilities	$ 540	$ 519

Leases - Maturities of Lease _2

Leases - Maturities of Lease Liabilities Prior Year (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Operating Leases
2023	$ 17,314	$ 18,711
2024	12,908	14,846
2025	11,926	10,037
2026	9,151	8,941
2027		6,474
2028 and thereafter		19,624
Total lease payments	81,298	78,633
Less: Imputed interest	16,241	15,500
Present value of lease liabilities	65,057	63,133
Finance Leases
2023	187	228
2024	125	162
2025	113	114
2026	112	88
2027		79
2028 and thereafter		0
Total lease payments	692	671
Less: Imputed interest	152	152
Present value of lease liabilities	$ 540	$ 519

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Taxes [Line Items]
Effective tax rate, current income tax expense (benefit) (as a percent)	24.10%	23.80%	19.10%	23.70%
Income tax expense	$ 15,554	$ 11,125	$ 23,612	$ 22,327
INDIA
Income Taxes [Line Items]
Foreign earnings repatriated			76,000
Foreign earnings repatriated, withholding taxes			4,015
United Kingdom
Income Taxes [Line Items]
Foreign earnings repatriated			15,598
AUSTRALIA
Income Taxes [Line Items]
Foreign earnings repatriated			$ 9,081

Income Taxes - Recognized in Co

Income Taxes - Recognized in Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Unrealized gain/(loss) on cash flow hedges	$ (2,269)	$ 2,801	$ (3,569)	$ 2,798
Reclassification adjustment for cash flow hedges	(231)	420	(765)	935
Reclassification adjustment for retirement benefits	(18)	(45)	(37)	(92)
Foreign currency translation adjustments	2	480	(1,136)	979
Total	$ (2,516)	$ 3,656	$ (5,507)	$ 4,620

Stock-Based Compensation - Cost

Stock-Based Compensation - Costs Related to Company's Stock-Based Compensation Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expenses	$ 11,511	$ 13,340	$ 25,918	$ 24,564
Income tax benefit related to share-based compensation(1)	2,789	3,216	12,619	6,022
Share-based payment arrangement, expense, tax benefit, discrete benefits	190	14	12,710	3,624
Cost of revenues
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expenses	3,341	3,131	6,907	5,772
General and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expenses	3,210	5,305	9,035	9,700
Selling and marketing expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expenses	$ 4,960	$ 4,904	$ 9,976	$ 9,092

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($)				3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jan. 01, 2023	Jun. 21, 2022	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount	$ 19,801,000			$ 19,801,000	$ 19,801,000
Cost not yet recognized, period for recognition	4 years
Share-based compensation arrangement by share-based payment award, options, exercised in period, fair value					30,000	0
Share Match Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount	$ 3,165,000			3,165,000	$ 3,165,000
Cost not yet recognized, period for recognition					1 year 9 months 18 days
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost not yet recognized, period for recognition					2 years 8 months 12 days
Unrecognized compensation cost	77,100,000			77,100,000	$ 77,100,000
Performance Based Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cost not yet recognized, period for recognition					2 years 1 month 6 days
Unrecognized compensation cost	$ 35,048,000			$ 35,048,000	$ 35,048,000
Two Thousand Eighteen Stock Options Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of shares available for grant	678,615			678,615	678,615		1,324,755
Share-based compensation arrangement by share-based payment award, expiration period				10 years	10 years
Award vesting period				4 years	4 years
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period					3 years
Performance based percentage	40%			40%	40%
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period					3 years
Performance based percentage	60%			60%	60%
2022 Employee Stock Purchase Plan | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock purchase program, cap per employee					15%
Employee stock purchase program, cap per employee			$ 25,000
Shares reserved for future issuance (shares)	792,364		800,000	792,364	792,364		800,000
Share-based compensation arrangement by share-based payment award, purchase period		6 months
Share-based compensation arrangement by share-based payment award, fair value assumptions, weighted average ESPP rights					$ 25.86

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Based Compensation Stock Option Activity (Details) - Employee Stock Option $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of options, outstanding, beginning balance (in shares) | shares	3,093
Number of options, granted (in shares) | shares	331,336
Number of options, exercised (in shares) | shares	(3,093)
Number of options, forfeited (in shares) | shares	0
Number of options, outstanding, ending Balance (in shares) | shares	331,336	3,093
Number of options, vested and exercisable at end of period (in shares) | shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted-average exercise price, outstanding, beginning balance (in dollars per share)	$ 27.62
Weighted-average exercise price, granted (in dollars per share)	150.75
Weighted-average exercise price, exercised (in dollars per share)	27.62
Weighted-average exercise price, forfeited (in dollars per share)	0
Weighted-average exercise price, outstanding, ending balance (in dollars per share)	150.75	$ 27.62
Weighted-average exercise price, vested and exercisable at end of period (in dollars per share)	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Aggregate intrinsic value, outstanding | $	$ 103	$ 362
Aggregate intrinsic value, exercised | $	384
Aggregate intrinsic value, vested and exercisable at end of period | $	$ 0
Weighted-average remaining contractual life	10 years	1 year
Weighted-average remaining contractual life, granted	10 years
Weighted average grant date fair value of Stock options granted during the period	$ 60.13

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Share-Based Compensation, Employee Stock Purchase Plan (Details)	6 Months Ended
	Jun. 30, 2023
Employee Stock Option
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Dividend yield	0%
Expected life (years)	6 years 3 months
Risk free interest rate for expected life	3.80%
Volatility for expected life	32.40%
Employee Stock | 2022 Employee Stock Purchase Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Dividend yield	0%
Expected life (years)	6 months
Risk free interest rate for expected life	4.70%
Volatility for expected life	38.90%
Discount for illiquidity	10.30%

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units Activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Share Match Units
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number, outstanding, at beginning balance (in shares)	47,623
Number, granted (in shares)	0
Number, vested (in shares)	0
Number, forfeited (in shares)	(4,177)
Number, outstanding, at ending balance (in shares)	43,446
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-average fair value, outstanding, at beginning balance (in dollars per share)	$ 124.76
Weighted-average fair value, granted (in dollars per share)	0
Weighted-average fair value, vested (in dollars per share)	0
Weighted-average fair value, forfeited (in dollars per share)	124.76
Weighted-average fair value, outstanding, at ending balance (in dollars per share)	$ 124.76
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number, outstanding, at beginning balance (in shares)	923,126
Number, granted (in shares)	238,431
Number, vested (in shares)	(307,060)
Number, forfeited (in shares)	(61,323)
Number, outstanding, at ending balance (in shares)	793,174
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-average fair value, outstanding, at beginning balance (in dollars per share)	$ 98.71
Weighted-average fair value, granted (in dollars per share)	171.38
Weighted-average fair value, vested (in dollars per share)	90.47
Weighted-average fair value, forfeited (in dollars per share)	104.53
Weighted-average fair value, outstanding, at ending balance (in dollars per share)	$ 123.29
Units vested for which the underlying common stock is yet to be issued (in shares)	130,528	174,490

Stock-Based Compensation - Perf

Stock-Based Compensation - Performance Based Stock Awards (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Revenue Based PRSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number, outstanding, at beginning balance (in shares) | shares	49,591
Number, granted (in shares) | shares	43,948
Number, vested (in shares) | shares	0
Number, forfeited (in shares) | shares	(5,399)
Number, outstanding, at ending balance (in shares) | shares	88,140
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-average fair value, outstanding, at beginning balance (in dollars per share) | $ / shares	$ 119.99
Weighted-average fair value, granted (in dollars per share) | $ / shares	172.80
Weighted-average fair value, vested (in dollars per share) | $ / shares	0
Weighted-average fair value, forfeited (in dollars per share) | $ / shares	127.56
Weighted-average fair value, outstanding, at ending balance (in dollars per share) | $ / shares	$ 145.86
Market Condition Based PRSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number, outstanding, at beginning balance (in shares) | shares	178,712
Number, granted (in shares) | shares	65,849
Number, vested (in shares) | shares	0
Number, forfeited (in shares) | shares	(17,252)
Number, outstanding, at ending balance (in shares) | shares	227,309
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-average fair value, outstanding, at beginning balance (in dollars per share) | $ / shares	$ 134.72
Weighted-average fair value, granted (in dollars per share) | $ / shares	223.61
Weighted-average fair value, vested (in dollars per share) | $ / shares	0
Weighted-average fair value, forfeited (in dollars per share) | $ / shares	141.19
Weighted-average fair value, outstanding, at ending balance (in dollars per share) | $ / shares	$ 159.98

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of Share-Based Compensation, Employee Stock Purchase Activity (Details) - Employee Stock - 2022 Employee Stock Purchase Plan - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Jul. 27, 2023	Jun. 30, 2023	Dec. 31, 2022	Jun. 21, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance (shares)		792,364	800,000	800,000
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares)		(7,636)
Share-based compensation arrangement by share-based payment award, shares issued in period, value		$ 1,060
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares)	(26,099)
Share-based compensation arrangement by share-based payment award, shares issued in period, value	$ 3,800

Related Party Disclosures - Add

Related Party Disclosures - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Related Party Transaction [Line Items]
Revenues, net	$ 404,996	$ 346,782	$ 805,639	$ 675,990
Accounts receivable, net	288,305		288,305		$ 259,222
Related Party
Related Party Transaction [Line Items]
Revenues, net	379	$ 574	1,330	$ 574
Accounts receivable, net	$ 383		$ 383		$ 856

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Jun. 15, 2023
Commitments and Contingencies Disclosure [Abstract]
Purchase commitment	$ 6,600
Other commitment			$ 4
Aggregate amount demanded by income tax authorities related to its transfer pricing issues	37,130	$ 37,088
Bank guarantees and deposits in respect to contingencies	7,328	7,532
Value added tax payable	5,572	5,526
GST refund, amount rejected	$ 4,305	$ 3,866

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details)			6 Months Ended
	Aug. 01, 2023 $ / shares shares	Jun. 20, 2023	Jun. 30, 2023 $ / shares shares	Jul. 31, 2023 shares	Dec. 31, 2022 $ / shares shares
Subsequent Event [Line Items]
Stock split conversion ratio		5
Common stock, authorized (in shares)			100,000,000		100,000,000
Common stock, par value (in dollars per share) | $ / shares			$ 0.001		$ 0.001
Performance Based Stock Awards
Subsequent Event [Line Items]
Cost not yet recognized, period for recognition			2 years 1 month 6 days
Forecast
Subsequent Event [Line Items]
Common stock, authorized (in shares)	400,000,000			100,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.001
Subsequent Event
Subsequent Event [Line Items]
Shares received per share, stock splits	4

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Subsequent Event [Line Items]
Net income	$ 49,068	$ 35,846	$ 100,399	$ 72,024
Basic weighted average common shares outstanding (in shares)	33,355,354	33,403,411	33,397,226	33,422,618
Dilutive effect of share-based awards (in shares)	333,095	427,128	412,329	439,979
Diluted weighted average common shares outstanding (in shares)	33,688,449	33,830,539	33,809,555	33,862,597
Basic (in dollars per share)	$ 1.47	$ 1.07	$ 3.01	$ 2.15
Diluted (in dollars per share)	$ 1.46	$ 1.06	$ 2.97	$ 2.13
Weighted average potentially dilutive considered anti-dilutive and not included in computing diluted earnings per share (in shares)	249,831		179,550	541
Pro Forma
Subsequent Event [Line Items]
Net income	$ 49,068	$ 35,846	$ 100,399	$ 72,024
Basic weighted average common shares outstanding (in shares)	166,776,770	167,017,055	166,986,130	167,113,090
Dilutive effect of share-based awards (in shares)	1,665,475	2,135,640	2,061,645	2,199,895
Diluted weighted average common shares outstanding (in shares)	168,442,245	169,152,695	169,047,775	169,312,985
Basic (in dollars per share)	$ 0.29	$ 0.21	$ 0.60	$ 0.43
Diluted (in dollars per share)	$ 0.29	$ 0.21	$ 0.59	$ 0.43
Weighted average potentially dilutive considered anti-dilutive and not included in computing diluted earnings per share (in shares)	1,249,155	0	897,750	2,705