Exlservice (EXLS) Citi’s 2025 Global Technology, Media and Telecommunications Conference summary

Key business drivers and differentiation

• Strong enterprise demand for AI adoption is fueling growth across all business lines.

• Deep expertise in data and analytics enabled a smooth transition to AI-driven solutions.

• Integrated offerings combine proprietary data, domain knowledge, and AI capabilities.

• Low exposure to commoditized services reduces risk of AI cannibalization.

• AI is embedded in nearly all client engagements, driving operational improvements.

Commercial model and revenue trends

• Shift toward outcome and transaction-based pricing models, increasing gross margin potential.

• Expansion into additional client workflows offsets lower pricing on individual projects.

• 75% of revenue is contracted for one year or more, providing strong visibility.

• Data and AI revenue now represents 54% of total revenue and is growing faster than the overall business.

• Revenue per headcount is expected to grow 3%-5% annually as AI adoption increases.

Market environment and demand outlook

• Demand for traditional IT development and dashboarding is declining, while AI engineering and data management are rising.

• Industry-specific trends: insurance is investing in new capabilities, healthcare is focused on cost reduction.

• No significant impact from tariffs or recent government actions on demand.

• Competitive landscape includes IT firms, consultancies, hyperscalers, and startups, but few have the full combination of data, domain, and AI expertise.