0001297989-22-000004 | 10-K | XBRL Viewer

$ 1,122,293

$ 958,434

$ 991,346

^[1]

690,934

623,936

655,490

General and administrative expenses

^[1]

431,359

334,498

335,856

Operating expenses:

142,040

113,891

126,909

Selling and marketing expenses

84,306

60,123

71,842

Depreciation and amortization expense

49,132

50,462

51,981

Impairment and restructuring charges

8,671

Total operating expenses

275,478

224,476

259,403

Income from operations

155,881

110,022

76,453

Foreign exchange gain, net

4,313

4,432

3,752

Interest expense

(7,561)

(11,190)

(13,612)

Other income, net

6,773

12,065

16,507

Loss on settlement of convertible notes

(12,845)

Income before income tax expense and earnings from equity affiliates

146,561

115,329

83,100

Income tax expense

31,850

25,626

15,172

Income before earnings from equity affiliates

114,711

89,703

67,928

(Gain)/loss from equity-method investment

(227)

(269)

Net income attributable to ExlService Holdings, Inc. stockholders

$ 114,758

$ 89,476

$ 67,659

Earnings per share attributable to ExlService Holdings, Inc. stockholders:

Basic (in dollars per share)

$ 3.42

$ 2.61

$ 1.97

Diluted (in dollars per share)

$ 3.35

$ 2.59

$ 1.95

Weighted-average number of shares used in computing earnings per share attributable to ExlService Holdings Inc. stockholders:

Basic (in shares)

33,549,275

34,273,388

34,350,150

Diluted (in shares)

34,244,478

34,555,164

34,732,683

[1]	Exclusive of depreciation and amortization expense.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Statement of Comprehensive Income [Abstract]

Net income

$ 114,758

$ 89,476

$ 67,659

Other comprehensive income/(loss):

Unrealized gain on cash flow hedges

4,663

12,665

8,773

Loss on net investment hedges

(1,134)

Foreign currency translation loss

(11,134)

(540)

(2,842)

Retirement benefits

(558)

(2,401)

(2,539)

Reclassification adjustments:

Gain on cash flow hedges

^[1]

(9,264)

(801)

(3,951)

Retirement benefits

^[2]

709

394

(159)

Income tax effects relating to above

^[3]

2,228

591

(707)

Total other comprehensive income/(loss)

(14,490)

9,908

(1,425)

Total comprehensive income

$ 100,268

$ 99,384

$ 66,234

[1]	These are reclassified to net income and are included in cost of revenues and operating expenses, as applicable in the consolidated statements of income. Refer to Note 16 - Derivatives and Hedge Accounting to the consolidated financial statements.
[2]	These are reclassified to net income and are included in other income, net in the consolidated statements of income. Refer to Note 19 - Employee Benefit Plans to the consolidated financial statements.
[3]	These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gains/(losses). Refer to Note 21 - Income Taxes to the consolidated financial statements.

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income/(Loss)	Treasury Stock	Non - Controlling Interest
Beginning balance (in shares) at Dec. 31, 2018		37,850,544				3,628,068
Beginning balance at Dec. 31, 2018	$ 618,319	$ 38	$ 364,179	$ 484,244	$ (83,467)	$ (146,925)	$ 250
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued against stock-based compensation plans (in shares)		630,110
Stock issued against stock-based compensation plans	987	$ 1	986
Stock-based compensation	$ 26,070		26,070
Acquisition of treasury stock (in shares)	(643,486)					(667,345)
Acquisition of treasury stock	$ (41,364)					$ (41,364)
Issuance of treasury stock	0
Allocation of equity component related to issuance costs on convertible notes / Settlement of convertible notes	(13)		(13)
Purchase of non-controlling interest	(232)		18				(250)
Other comprehensive loss	(1,425)				(1,425)
Net income	67,659			67,659
Ending balance (in shares) at Dec. 31, 2019		38,480,654				4,295,413
Ending balance at Dec. 31, 2019	670,001	$ 39	391,240	551,903	(84,892)	$ (188,289)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued against stock-based compensation plans (in shares)		487,398
Stock issued against stock-based compensation plans	1,501	$ 0	1,501
Stock-based compensation	$ 28,235		28,235
Acquisition of treasury stock (in shares)	(1,085,153)					(1,113,205)
Acquisition of treasury stock	$ (79,949)					$ (79,949)
Issuance of treasury stock	0
Other comprehensive loss	9,908				9,908
Net income	$ 89,476			89,476
Ending balance (in shares) at Dec. 31, 2020	33,559,434	38,968,052				5,408,618
Ending balance at Dec. 31, 2020	$ 719,172	$ 39	420,976	641,379	(74,984)	$ (268,238)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued against stock-based compensation plans (in shares)		540,288
Stock issued against stock-based compensation plans	710	$ 1	709
Stock-based compensation	$ 38,621		38,621
Acquisition of treasury stock (in shares)	(1,087,325)					(1,118,634)
Acquisition of treasury stock	$ (118,357)					$ (118,357)
Issuance of treasury stock	36,742		19,436			$ 17,306
Issuance of treasury stock (in shares)						310,394
Allocation of equity component related to issuance costs on convertible notes / Settlement of convertible notes	(84,000)		(84,000)
Other comprehensive loss	(14,490)				(14,490)
Net income	$ 114,758			114,758
Ending balance (in shares) at Dec. 31, 2021	33,291,482	39,508,340				6,216,858
Ending balance at Dec. 31, 2021	$ 693,156	$ 40	$ 395,742	$ 756,137	$ (89,474)	$ (369,289)	$ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 114,758	$ 89,476	$ 67,659
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	49,656	50,513	52,193
Stock-based compensation expense	38,621	28,235	26,070
Amortization of operating lease right-of-use assets	26,326	27,146	27,335
Unrealized loss/(gain) on short term investments	5,139	(7,174)	(10,116)
Unrealized foreign currency exchange (gain)/loss, net	(3,821)	402	(206)
Deferred income tax (benefit)/expense	(20,327)	2,697	(12,345)
Reversal/(allowance) for expected credit losses	(464)	297	614
Loss on settlement of convertible notes	12,845	0	0
(Gain)/loss from equity-method investment	(47)	227	269
Amortization of non-cash interest expense related to convertible senior notes	1,795	2,616	2,472
Impairment charges	0	0	3,627
Others, net	216	(542)	(1,204)
Change in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	(37,684)	24,696	(7,093)
Prepaid expenses and other current assets	(1,179)	(5,133)	1,385
Advance income tax, net	(12,062)	696	7,194
Other assets	227	6,505	(2,204)
Accounts payable	(614)	243	134
Deferred revenue	(12,733)	18,222	6,679
Accrued employee costs	46,475	335	16,915
Accrued expenses and other liabilities	2,934	(9,895)	13,856
Operating lease liabilities	(25,674)	(26,589)	(24,813)
Net cash provided by operating activities	184,387	202,973	168,421
Cash flows from investing activities:
Purchase of property and equipment	(37,248)	(42,224)	(40,545)
Proceeds from sale of property and equipment	1,300	916	407
Business acquisition (net of cash and cash equivalents acquired)	(76,831)	0	0
Purchases of investments	(96,011)	(102,462)	(187,974)
Proceeds from redemptions of investments	94,520	126,154	176,968
Investment in equity affiliate	0	(700)	0
Purchase of non-controlling interest	0	0	(241)
Net cash used for investing activities	(114,270)	(18,316)	(51,385)
Cash flows from financing activities:
Principal payments of finance lease liabilities	(201)	(249)	(336)
Proceeds from borrowings	300,000	110,000	46,000
Repayments of borrowings	(329,031)	(120,867)	(98,247)
Payment of debt issuance costs	0	0	(117)
Acquisition of treasury stock	(118,357)	(79,949)	(41,364)
Proceeds from exercise of stock options	710	1,501	986
Net cash used for financing activities	(146,879)	(89,564)	(93,078)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(4,947)	3,382	(1,045)
Net (decrease)/increase in cash, cash equivalents and restricted cash	(81,709)	98,475	22,913
Cash, cash equivalents and restricted cash at the beginning of the year	225,519	127,044	104,131
Cash, cash equivalents and restricted cash at the end of the year	143,810	225,519	127,044
Cash paid during the year for:
Interest	6,589	7,626	10,649
Income taxes, net of refunds	49,825	20,571	19,087
Supplemental disclosure of non-cash investing and financing activities:
Settlement of portion of convertible notes through issuance of treasury stock	36,742	0	0
Assets acquired under finance lease	$ 71	$ 45	$ 506

Organization	12 Months Ended
Organization	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	OrganizationExlService 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 learnings, 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 clients are located principally in the United States of America (“U.S.”) and the United Kingdom (“U.K.”).

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(a)Basis of Preparation and Principles of Consolidation

The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”). The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings Inc. and all of its subsidiaries and includes the Company's share in the results of its associates.

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.

Accounting policies of the respective individual subsidiary and associate are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under U.S. GAAP.

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 consolidated statements of income.

Effective January 1, 2020, the Company made certain operational and structural changes to more closely integrate the Company’s businesses and to simplify its organizational structure. Under the new structure, the Company reports its financial performance based on new segments described in Note 3 - Segment and Geographical Information to the consolidated financial statements. In conjunction with the new reporting structure, the Company has recast certain prior period amounts, wherever applicable, to conform to the way the Company internally manages and monitors segment performance. This change primarily impacted Note 3 - Segment and Geographical Information and Note 9 - Business Combinations, Goodwill and Intangible Assets to the consolidated financial statements, with no impact on the consolidated balance sheets, statements of income, comprehensive income, equity and cash flows.

(b)Use of Estimates

The preparation of the 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 consolidated financial statements and the 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 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, allowance for expected credit losses, 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, 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, revenue projections and discount rate applied within the discounted cash flow model for business acquisitions, and recoverability of long-lived assets, goodwill and intangibles.

As of December 31, 2021, the extent to which the global Coronavirus Disease 2019 pandemic (“COVID-19”) will ultimately impact the Company's business depends on numerous dynamic factors, which the Company still cannot reliably predict. As a result, many of the Company's estimates and assumptions herein required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve with respect to COVID-19, the Company’s estimates may materially change in future periods. Any changes in estimates are adjusted prospectively in the Company’s consolidated financial statements.

(c)Foreign Currency Translation

The functional currency of each entity in the Company is its respective local country currency which is also the currency of the primary economic environment in which it operates except for the entities in Mauritius which use the U.S. dollar as its functional currency. Transactions in foreign currencies are initially recorded into functional currency at the rates of exchange prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured into functional currency at the rates of exchange prevailing at the balance sheet date. Non-monetary assets and liabilities are remeasured to the functional currency at exchange rates that prevailed on the date of inception of the transaction. All foreign exchange gains and losses arising on re-measurement are recorded in the Company's consolidated statements of income.

The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Share capital and other equity items are translated at exchange rates that prevailed on the date of inception of the transaction. Resulting translation adjustments are included in “Accumulated other comprehensive income/(loss)” in the consolidated balance sheets.

(d)Revenue Recognition

Revenue is recognized when services are provided to the Company's customers, in an amount that reflects the consideration which the Company expect to be entitled to in exchange for the services provided.

Revenue is measured based on consideration specified in a contract with a customer and excludes discounts and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by providing services to a customer.

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.

Nature of Services

The Company derives its revenues from digital operations and solutions and analytics services. The Company provides digital operations and solutions and analytics services helping businesses enhance revenue growth and improve profitability.

Type of Contracts

i.a) Revenues under time-and-material, transaction and outcome-based contracts are recognized as the services are performed. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), the Company monitors such service level parameters to determine if any service credits

or penalties have been incurred. Revenues are recognized net of any penalties or service credits that are due to a client.

b) Revenues from arrangements involving subcontracting, either in part or whole of the assigned work, are recognized after the Company’s assessment of “Principal versus agent considerations.” The Company evaluates whether it is in control of the services before the same are transferred to the customer to assess whether it is principal or agent in the arrangement. Revenues are recognized on a gross basis if the Company is in the capacity of principal and on a net basis if it falls in the capacity of an agent.

ii.Revenues for the Company’s fixed-price contracts are recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the client. The use of this method requires significant judgment to estimate the cost required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed and resources engaged. The Company regularly monitors these estimates throughout the execution of the project and records changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified.

iii.Revenue from the Company’s software and related services contracts, which are not significant, are primarily related to annual maintenance renewals or incremental license fees for additional users. Maintenance revenues are generally recognized on a straight-line basis over the annual contract term. Fees for incremental license without any associated services are recognized upon delivery of the related incremental license.

To a lesser extent, certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription-based. The Company recognizes revenue from distinct perpetual licenses upfront at a point in time when the software is made available to the client, whereas for a combined software license and services performance obligation, revenue is recognized over the period that the services are performed.

Revenue from distinct subscription based licenses is recognized over the period of service performed. Revenue from any associated maintenance or ongoing support services is recognized over the term of the contract.

iv.Revenues from reimbursement optimization services having contingent fee arrangements are recognized by the Company at the point in time when a performance obligation is satisfied, which is when it identifies an overpayment claim. In such contracts, the Company’s consideration is contingent upon the actual collections made by its customers and net of any subsequent retraction claims. Based on guidance on “variable consideration” in Topic 606, the Company uses its historical experience and projections to determine the expected recoveries from its customers and recognizes revenue based upon such expected recoveries. Any adjustment required due to change in estimates are recorded in the period in which such change is identified.

Modification to Contracts

The Company’s contracts may be modified to add, remove or change existing performance obligations. The accounting for modifications to contracts involves assessing whether the services added to an existing contract are distinct and whether the pricing is at a standalone selling price. Services added that are distinct and at standalone selling price are accounted on a prospective basis either as a separate contract, or as a termination of existing contract and creation of a new contract.

Arrangements with Multiple Performance Obligations

The Company’s contracts with customers do not generally bundle different services together except for software and related services contracts, which are not significant, involving implementation services and post contract maintenance services. In such software and related services contracts, revenue is allocated to each performance obligation based on the relative standalone selling price.

Variable Consideration

Variability in the transaction price arises primarily due to service level agreements and volume discounts.

The Company considers its experience with similar transactions and expectations regarding the contract in estimating the amount of variable consideration that should be recognized during a period.

The Company believes that the expected value method is most appropriate for determining the variable consideration since the Company has large number of contracts with similar nature of transactions/services.

Allocation of Transaction Price to Performance Obligations

The transaction price is allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated by reference to the total transaction price less the sum of the observable standalone selling prices of other goods or services promised in the contract. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract.

Unbilled Receivables

Unbilled receivables represents revenues recognized for services rendered between the last billing date and the balance sheet date. Unbilled receivables also include revenues recognized from reimbursement optimization services where the Company identifies an overpayment claim. In such contracts, Company’s consideration is contingent upon and collectable only when the actual collections are made by its customers. Based on guidance on “variable consideration” in Topic 606, Company use its historical experience and projections to determine the expected recoveries from its customers and recognize revenue and receivables based upon such expected recoveries. Accordingly, the amounts for which services have been performed and for which invoices have not been issued to customers on the balance sheet date, (i.e. unbilled receivables) are presented under accounts receivable.

Deferred Revenue and Contract Fulfillment Costs

The Company has contract liabilities (deferred revenue) consisting of advance billings and billing in excess of revenues recognized. Deferred revenue also includes the amount for which services have been rendered but other conditions of revenue recognition are not met, for example where the Company does not have an enforceable contract.

Further, the Company also defers revenues attributable to certain process transition activities, with respect to its customers where such activities do not represent separate performance obligations. Revenues related to such transition activities are classified under “Deferred revenue” and “Other non-current liabilities” in the Company’s consolidated balance sheets and are recognized ratably over the period during which the related services are performed.

Costs related to such transition activities are contract fulfillment costs, and thereby classified under “Other current assets” and “Other assets” in the consolidated balance sheets, and are recognized over the expected duration of the relationship with customers, under “Cost of revenues” in the consolidated statements of income.

Contract Acquisition Costs

Direct and incremental costs incurred for acquiring contracts, such as sales commissions are contract acquisition costs and thereby classified under “Other current assets” and “Other assets” in the consolidated balance sheets. Such costs are amortized over the expected duration of the relationship with customers and recorded under Selling and marketing expenses in the consolidated statements of income.

Upfront Payments Made to Customers

Upfront payments, in nature of deal signing discount or deal signing bonuses made to customers are contract assets and classified under “Other current assets and Other assets” in the consolidated balance sheets. Such costs are amortized over the expected period of benefit and are recorded as an adjustment to transaction price and reduced from revenues.

Out-of-Pocket Expenses

Reimbursements of out-of-pocket expenses received from clients are included as part of revenues.

Payment terms

All contracts entered into by the Company specify the payment terms and are defined for each contract separately. Usual payment terms range between 30-60 days. The Company does not have any extended payment terms clauses in existing contracts.

Remaining Performance Obligations

The Company does not disclose the value of remaining performance obligations as a result of applying the practical expedient provided in Topic 606, for contracts that meet any of the following criteria:

i.Contracts with an original expected length of one year or less as determined under ASC 606,

ii.Contracts for which Company recognize revenue based on the right to invoice for service performed.

(e)Cash and Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, surplus funds are invested in highly-rated debt mutual funds, money market accounts and time deposits to reduce its exposure to market risk with regard to these funds.

Restricted cash 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 (refer to Note 7 - Cash, Cash Equivalents and Restricted Cash to the consolidated financial statements for details). These deposits with banks have maturity dates after December 31, 2021. Restricted cash presented under current assets 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.”

For purposes of the statements of cash flows, the Company includes in its cash and cash-equivalent balances those amounts that have been classified as restricted cash and restricted cash equivalents.

(f)Investments

The Company’s investments consist of time deposits with financial institutions which are valued at cost and approximate fair value. Interest earned on such investments is included in interest income. Investments with original maturities greater than ninety days but less than twelve months are classified as short-term investments. Investments with maturities greater than twelve months from the balance sheet date are classified as long-term investments.

The Company's mutual fund investments are in debt funds invested in India and money market funds which invest in instruments of various maturities in the United States. These investments are accounted for in accordance with the fair value option under Financial Accounting Standard Board Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments, (“Topic 825”). The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period and any changes in fair value are included in other income, net. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold or disposed and is included in other income.

(g)Accounts Receivable and Allowance for Expected Credit Losses

Accounts receivable are recorded net of allowances 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 and estimates relating to the possible effects resulting from COVID-19. Accounts receivable balances are written-off against the allowance for expected credit losses after all means of collection have been exhausted and the potential for recovery is considered remote.

Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts.

(h)Property and equipment

Property and equipment are stated at cost less accumulated depreciation and impairment. Equipment held under finance leases are capitalized at the commencement of the lease at the lower of present value of minimum lease payments at the inception of the leases or its fair value. Expenditures for replacements and improvements are capitalized, if they enhance the production capacity and future benefits whereas the costs of maintenance and repairs are charged to earnings as incurred. Advances paid towards acquisition of property and equipment and the cost of property and equipment not yet placed in service before the end of the reporting period are classified as capital work in progress.

Depreciation is computed using the straight-line method over the estimated useful lives of the assets.

Property and equipment which are abandoned and disposed other than by sale, are assessed for revision of their useful life, thereby revising the future depreciation to reflect the use of property and equipment over the remaining shortened life.

The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The estimated useful life have been disclosed in Note 8 - Property and Equipment, net to the consolidated financial statements.

(i)Software Development Costs

The Company capitalizes certain costs related to the development or enhancements to existing software products to be sold, leased or otherwise marketed and / or used for internal use. The Company begins to capitalize costs to develop or enhance software when planning stage efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred and recorded within “General and administrative expenses” in the Company’s consolidated statements of income. The Company exercises judgment in determining the point at which various projects may be capitalized, in assessing the ongoing value of the capitalized costs, and in determining the estimated useful lives over which the costs are amortized.

Implementation costs in cloud computing arrangements (“CCA”), such as software as a service and other hosting arrangements are evaluated in a similar manner as capitalized software development costs. If CCA do not provide a contractual right upon the Company to take possession of the software at any time during the hosting period without significant penalty, and it is not feasible to either run the software on the Company’s own hardware, then implementation costs incurred are accounted for as a service contract. In case of the existence of such a contractual right to take possession of the software and the Company is able to run the software on its own hardware, then such implementation costs are recognized as capitalized software development costs.

Annual amortization of internally developed software products meant for sale, lease or otherwise marketing is the greater of the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the software product, generally estimated to be up to 5 years from the date the product became available for use. Annual amortization of internally developed software products meant for internal use is based on the straight-line method over the estimated useful lives of the internally developed software products. The Company amortizes capitalized implementation costs in a CCA over the life of the service contract.

(j)Business Combinations, Goodwill and Other Intangible Assets

ASC Topic 805, Business Combinations, requires that the acquisition method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Contingent consideration is recognized at its fair value on the acquisition date. A

liability resulting from contingent consideration is re-measured to fair value as of each reporting date until the contingency is resolved, whereby such changes in fair value are recognized in earnings. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Under ASC 350, Intangibles - Goodwill and Other, all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition related costs are expensed as incurred under general and administrative expenses.

Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased in a business combination. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. The Company undertakes studies to determine the fair values of assets and liabilities acquired and allocate purchase consideration to assets and liabilities, including property and equipment, goodwill and other identifiable intangibles. The Company examines the carrying value of the goodwill annually in the fourth quarter, or more frequently, as circumstances warrant, to determine whether there are any impairment losses. The Company tests for goodwill impairment at the reporting unit level, as that term is defined in U.S. GAAP. The Company also assesses any potential goodwill impairment for all its reporting units immediately prior to any segment changes and reallocates goodwill to its new reporting units using a relative fair value approach.

Refer to Note 9 - Business Combinations, Goodwill and Intangible Assets to the consolidated financial statements for discussion of the Company's goodwill impairment testing. The Company adopted ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, effective January 1, 2018 in conjunction with our goodwill impairment assessment.

The goodwill quantitative impairment test involves a comparison of the fair value of a reporting unit with its carrying amount. The Company estimates the fair value of reporting unit using a combination of the income approach, using discounted cash flow analysis (“DCF model”), and also the market approach, using market multiples for reporting units whereby the fair value is not substantially in excess of carrying value. Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The Company uses its internal forecasts to estimate future cash flows and include an estimate of long-term future growth rates based on its most recent views of the long-term outlook for each business. Actual results may differ from those assumed in our forecasts. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units. The discount rate is mainly based on judgment of the specific risk inherent within each reporting unit. The variables within the discount rate, many of which are outside of the Company’s control, provide the Company’s best estimate of all assumptions applied within the DCF model. The Company also uses the “Market approach” to corroborate the results of the income approach for some of the Company’s reporting units. Under the market approach, the Company estimates fair value based on market multiples of revenues and earnings derived from comparable publicly-traded companies with characteristics similar to the reporting unit and comparable market transactions. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results, market conditions and other factors. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit.

Determining fair value requires the use of estimates and exercise of significant judgment, including assumptions about appropriate discount rates, perpetual growth rates, amount and timing of expected future cash flows, market multiples of revenues and earnings and comparable market transactions. These estimates and judgements may not be within the control of the Company and accordingly it is reasonably possible that the estimates and judgments described above could change in future periods. There can be no assurance that operations will achieve the future cash flows reflected in the projections. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss shall be recognized, in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.

Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period.

The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method:


			Useful Lives (in years)
Customer relationships			7-15
Developed technology			3-10
Non-compete agreements			4
Trade names and trademarks			2-10

(k)Investment in Equity Affiliate

Investments in equity affiliate 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 consolidated statements of income. The Company periodically reviews the carrying value of its investment to determine if there has been any other than temporary decline in carrying value. The investment balance for an investee is increased or decreased for cash contribution and distributions to or from, respectively.

(l)Impairment of Long-lived Assets

Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. 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, and the asset’s residual value, if any. In turn, measurement of an impairment loss requires a determination of fair value, which is based on the best information available. The Company derives the required undiscounted cash flow estimates from its historical experience and its internal business plans. To determine fair value, the Company follows the discounted cash flow approach and uses its internal cash flow estimates discounted at an appropriate discount rate and independent appraisals, as appropriate. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value.

(m) Derivative Financial Instruments

In the normal course of business, the Company uses derivative instruments for the purpose of mitigating the exposure from risk of foreign currency fluctuation associated with forecasted transactions denominated in certain foreign currencies and to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates, and not for speculative trading purposes. These derivative contracts are purchased adhering to the Company’s policy and are with counterparties that are highly rated financial institutions.

The Company hedges forecasted transactions that are subject to foreign exchange exposure with foreign currency exchange contracts that qualify as cash flow hedges. Changes in the fair value of these cash flow hedges are recorded as a component of accumulated other comprehensive income/(loss) (“AOCI”), net of tax, until the hedged transactions occurs. The resultant foreign exchange gain/(loss) upon settlement of cash flow hedges are recorded in the consolidated statements of income along with the underlying hedged item in the same line as part of “Cost of revenues,” “General and administrative expenses,” “Selling and marketing expenses,” and “Depreciation and amortization expense,” as applicable.

The Company evaluates hedge effectiveness of cash flow hedges at the time a contract is entered into as well as on an ongoing basis. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in equity are reclassified to earnings.

The Company uses derivatives instruments consisting of foreign currency exchange contracts to economically hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the functional currency, against the risk of foreign currency fluctuations associated with remeasurement of such assets and liabilities to functional

currency. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss).

The Company also uses forward contracts designated as net investment hedges to hedge the foreign currency risks related to the Company's investment in foreign subsidiaries. Gains and losses on these forward contracts are recognized in AOCI as part of the foreign currency translation adjustment.

(n)Borrowings

The Company accounts for convertible notes in accordance with the guidelines established by the ASC 470-20, Debt with Conversion and Other Options. The Company separates the convertible notes into liability and equity components. The Beneficial Conversion Feature ("BCF") of a convertible note, which is the equity component and recorded as additional paid-in capital, is normally characterized as the convertible portion or feature of certain notes payable that provide a rate of conversion that is below market value or in-the-money when issued. The Company records a BCF related to the issuance of a convertible note when issued.

If a convertible note is within the scope of the Cash Conversion Subsections and contains embedded features other than the embedded conversion option, the guidance in ASC 815-15, Derivatives and Hedging - Embedded Derivatives (ASC 815-15), is applied to determine if any of those features must be separately accounted for as a derivative instrument.

The estimated fair value of the liability component at issuance is determined using a discounted cash flow technique, which considers debt issuances with similar features of the Company’s convertible notes, excluding the conversion feature. The excess of the gross proceeds received over the estimated fair value of the liability component is allocated to the BCF, which is credited to additional paid-in-capital, with a corresponding offset recognized as a discount to reduce the net carrying value of the convertible notes. The discount is amortized to interest expense over the expected term of the convertible notes using the effective interest method.

Pursuant to ASC Subtopic 470-20, total consideration paid for the settlement of an existing convertible note is separated into liability and equity components. The fair value of the liability component is estimated using a discounted cash flow technique, which considers debt issuances with terms similar to that of the Company’s debt, however without the conversion feature. The excess of consideration over the fair value of the liability component is assigned to the equity component. The effective interest rate used to estimate the fair value of the liability component is based on the income and market based approaches, adjusted for the remaining tenor of the extinguished debt. The difference between the fair value and the carrying value of the extinguished debt, net of the unamortized debt discount and unamortized debt issuance costs, is recorded as a gain or loss on settlement in the consolidated statements of income.

(o)Employee Benefits

Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are recognized in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method.

The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return on plan assets, future compensation increases and attrition rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic benefit cost over the expected remaining period of service of the covered employees using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. These assumptions may not be within the control of the Company and accordingly it is reasonably possible that these assumptions could change in future periods.

The Company includes the service cost component of the net periodic benefit cost in the same line item or items as other compensation costs arising from services rendered by the respective employees during the period. The interest cost, expected

return on plan assets and amortization of actuarial gains/loss, are included in “Other income, net.” Refer to Note 19 - Employee Benefit Plans to the consolidated financial statements for details.

The Company recognizes its liabilities for compensated absences depending on whether the obligation is attributable to employee services already rendered, rights to compensated absences vest or accumulate and payment is probable and estimable.

(p)Stock-Based Compensation

The Company recognizes stock-based compensation expense in the consolidated statements of income for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards. The Company recognizes these compensation costs on straight-line basis over the requisite service period of the award, or to the date on which retirement eligibility is achieved, if shorter. Forfeitures are accounted when the actual forfeitures occur.

Under the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”), which was adopted by the Company's stockholders on June 15, 2018, which replaces and supersedes the 2015 Amendment and Restatement of the Company’s 2006 Omnibus Award Plan (the “Prior Plan”) and is effective upon the date approved by the Company’s stockholders, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. Generally the grants provide that 50% of the PRSUs cliff vest based on an aggregated revenue target (“PU”) for a three-year period. The remaining 50% vest based on a market condition (“MUs”) that is contingent on meeting or exceeding the Company's total shareholder return relative to a group of peer companies specified under the program, measured over a three-year performance period. The award recipient may earn up to 200% of the PRSUs granted based on the actual achievement of both targets. However, the features of the equity incentive compensation program are subject to change by the Compensation Committee of our Board of Directors.

The fair value of each PU is determined based on the market price of one common share of the Company on the day prior to the date of grant, and the associated compensation expense is calculated on the basis that performance targets at 100% are probable of being achieved. The compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The final number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The expense related to the unvested PUs as of December 31, 2021 was based on the Company's assessment of performance criteria for these grants that would most likely be met during the respective years of vesting against the targeted performance level.

The grant date fair value for the MUs is determined using a Monte Carlo simulation model and the related compensation expense is expensed on a straight-line basis over the vesting period. All compensation expense related to the MUs will be recognized if the requisite performance period is fulfilled, regardless of the extent of the market condition achieved.

(q)Income Taxes

The Company accounts for income taxes using the asset and liability method of accounting for income taxes. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statements of income in the period in which the change is identified. The Company releases the tax effects from AOCI at the time of reclassification of cash flows hedges gains/ (losses) from AOCI to the consolidated statements of income. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged.

(r)Financial Instruments and Concentration of Credit Risk

Financial Instruments. For certain financial instruments, including cash and cash equivalents, short-term investments (except investment in mutual funds, as disclosed in Note 15), restricted cash, accounts receivable, accrued interest on term deposits, accrued capital expenditures, accrued expenses and interest payable on borrowings for which fair values approximate their carrying amounts due to their short-term nature. 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.

Concentration of Credit Risk. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, time deposits, mutual fund investments, accounts receivable and derivative financial instruments. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. Pursuant to the Company’s investment policy, surplus funds are maintained as cash equivalents and short- term investments, and are invested in highly-rated mutual funds, money market accounts and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. The Company’s exposure to credit risk on account receivable is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. To mitigate this risk the Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition processes as well as through its ongoing collectability assessment processes for accounts receivable. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

(s)Leases

The Company determines if an arrangement is a lease at inception of the contract. The Company’s assessment is based on whether: (1) the contract involves the use of a distinct identified asset, (2) the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term of the contract, and (3) the Company has the right to direct the use of the asset. A lease is classified as a finance lease if any one of the following criteria are met: (1) the lease transfers ownership of the asset by the end of the lease term, (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (3) the lease term is for a major part of the remaining useful life of the asset or (4) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset.

Operating leases are recorded in “Operating lease right-of-use assets,” “Current portion of operating lease liabilities” and “Operating lease liabilities, less current portion” in the Company's consolidated balance sheets. Long-lived assets underlying finance leases are recorded in “Property and equipment” and the current and non-current portion of finance lease liabilities are presented within “Accrued expenses and other current liabilities” and “other non-current liabilities,” respectively, in the Company's consolidated balance sheets.

ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease arrangement. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. For leases in which the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date for determining the present value of lease payments. Lease terms includes the effects of options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately.

The Company accounts for lease-related concessions to mitigate the economic effects of COVID-19 on lessees in accordance with guidance in Topic 842, Leases, to determine, on a lease-by-lease basis, whether the concession provided by lessor should be accounted for as a lease modification.

The Company accounts for a modification as a separate contract when it grants an additional right of use not included in the original lease and the increase is commensurate with the standalone price for the additional right of use, adjusted for the circumstances of the particular contract. Modifications which are not accounted for as a separate contract are reassessed as of the effective date of the modification based on its modified terms and conditions and the facts and circumstances as of that date. Upon modification, the Company remeasures the lease liability to reflect changes to the remaining lease payments and discount rates and recognizes the amount of the remeasurement of the lease liability as an adjustment to the ROU assets. However, if the carrying amount of the ROU assets is reduced to zero as a result of modification, any remaining amount of the remeasurement is recognized as an expense in consolidated statements of income.

The Company reviews ROU assets for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable.

(t)Government Grants

Government grants related to income are recognized as a reduction of expenses in the consolidated statements of income when there is a reasonable assurance that the entity will comply with the conditions attached to the grant and that the grants will be received.

Certain units of our Indian subsidiaries were established as 100% Export-Oriented units under the Software Technology Parks of India (“STPI”) or Special Economic Zone ("SEZ") scheme promulgated by the Government of India. These units enjoy exemption from payment of customs, central excise duties, and levies on imported and indigenous capital goods, subject to certain performance conditions being fulfilled by these units. Such exemption is considered as a government grant. Grants from the government are recognized when there is reasonable assurance that these units will comply with those conditions. The carrying amount of an item of property and equipment is reduced by government grants received (i.e. the asset is accounted for on the basis of its net acquisition cost). The grant is recognized in the consolidated statements of income over the life of the depreciable asset in the form of reduced depreciation expense.

(u)Earnings per share

Basic earnings per share is computed using the weighted average number of common shares outstanding, adjusted for outstanding shares that are subject to repurchase during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards and outstanding convertible notes except where the results would be anti-dilutive. The Company includes performance stock unit awards in dilutive potential common shares when they become contingently issuable and have a dilutive impact per authoritative guidance and excludes such awards when they are not contingently issuable.

The Company calculates the dilutive effect of convertible notes using the treasury stock method through the maturity date of the convertible notes, if it has the intent and ability to settle the principal amount of the outstanding convertible notes in cash. Under the treasury stock method, the convertible notes shall have a dilutive impact related to the conversion premium, if any, on diluted earnings per share to the extent the issuance is dilutive based on the average market price of our common stock for a reporting period being greater the conversion price.

(v)Commitments and contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred.

(w)Recent Accounting Pronouncements

In March 2020, Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and London Inter-Bank Offered Rate (“LIBOR”). The ASU provides practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are elective and are effective upon issuance for all entities through December 31, 2022. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

In October 2021, FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU provides guidance in Topic 805 to require the acquirer entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts 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 Company is currently evaluating the impact of this ASU on its consolidated financial statements.

(x) Recently Adopted Accounting Pronouncements

In December 2019, FASB issued ASU No. 2019-12, Income Taxes Simplifying the Accounting for Income Taxes. This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The Company adopted this ASU on January 1, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

In October 2020, FASB issued ASU No. 2020-10, Codification Improvements, to provide guidance for technical corrections such as conforming amendments, clarifications to guidance, simplifications to wording or structure of guidance, and other minor improvements. The amendments in this ASU improve the consistency of the ASC by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to financial statements is codified in the disclosure section of the ASC. The Company adopted this ASU on January 1, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

In January 2021, FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope, to expand the scope of Topic 848 to include derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment (commonly referred to as the discounting transition). This ASU extends some of Topic 848’s optional expedients and exceptions for contract modifications and hedge accounting to derivative instruments impacted by discounting transition as a result of the discontinuation of the use of LIBOR as a benchmark interest rate due to reference rate reform. This ASU is effective immediately for all entities with the option to be applied retrospectively as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, and prospectively to any new contract modifications made on or after January 7, 2021 through December 31, 2022. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

Segment and Geographical Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment and Geographical Information

The Company is a provider of data analytics and digital operations and solutions.

Effective January 1, 2020, the Company made certain operational and structural changes to more closely integrate its businesses and to simplify its organizational structure. The Company since then 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. In line with the Company’s strategy of vertical integration and focus on domain expertise, the Company has integrated its Finance & Accounting and Consulting operating segments within each of the Insurance and Healthcare operating segments based on the corresponding industry-specific clients. Finance & Accounting and Consulting services to clients outside of the Insurance and Healthcare industries are part of the Company’s “Emerging Business” operating segment. In addition, the Company integrated its former Travel, Transportation and Logistics, Banking and Financial Services, and Utilities operating segments under Emerging Business to further leverage and optimize the operating scale in providing digital operations and solutions.

The Company’s reportable segments effective January 1, 2020 are as follows:

•Insurance,

•Healthcare,

•Emerging Business, and

•Analytics

In conjunction with the new reporting structure, the Company has recast its segment disclosures for prior periods presented to conform to the way the Company internally manages and monitors segment performance.

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.

The December 2021 acquisition of Clairvoyant AI Inc. (“Clairvoyant”) is included in the Analytics reportable segment. Refer to Note 9 - Business Combinations, Goodwill and Intangible Assets to the consolidated financial statements for further details.

Revenues and cost of revenues for the years ended December 31, 2021, 2020 and 2019, respectively, for each of the reportable segments, are as follows:


	Year ended December 31, 2021
	Insurance		Healthcare		Emerging Business		Analytics		Total

Revenues, net	$	381,999	$	112,386	$	167,236	$	460,672	$	1,122,293
Cost of revenues(1)	239,529		69,760		91,737		289,908		690,934
Gross profit(1)	$	142,470	$	42,626	$	75,499	$	170,764	$	431,359
Operating expenses									275,478
Loss on settlement of convertible notes, foreign exchange gain, interest expense and other income, net									(9,320)
Income tax expense									31,850
Gain from equity-method investment									47
Net income									$	114,758

(1) Exclusive of depreciation and amortization expense.


	Year ended December 31, 2020
	Insurance		Healthcare		Emerging Business		Analytics		Total
Revenues, net	$	341,770	$	101,315	$	152,670	$	362,679	$	958,434
Cost of revenues(1)	231,884		73,143		89,459		229,450		623,936
Gross profit(1)	$	109,886	$	28,172	$	63,211	$	133,229	$	334,498
Operating expenses									224,476
Foreign exchange gain, interest expense and other income, net									5,307
Income tax expense									25,626
Loss from equity-method investment									227
Net income									$	89,476

(1) Exclusive of depreciation and amortization expense.


	Year ended December 31, 2019
	Insurance		Healthcare		Emerging Business		Analytics		Total
Revenues, net	$	346,434	$	97,465	$	190,118	$	357,329	$	991,346
Cost of revenues(1)	238,580		77,048		108,617		231,245		655,490
Gross profit(1)	$	107,854	$	20,417	$	81,501	$	126,084	$	335,856
Operating expenses									259,403
Foreign exchange gain, interest expense and other income, net									6,647
Income tax expense									15,172
Loss from equity-method investment									269
Net income									$	67,659

(1) Exclusive of depreciation and amortization expense.

Revenues, net by service type, were as follows:


	Year ended December 31,
	2021		2020		2019
Digital operations and solutions(1)	$	661,621	$	595,755	$	634,017
Analytics services	460,672		362,679		357,329
Revenues, net	$	1,122,293	$	958,434	$	991,346

(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.


	Year ended December 31,
	2021		2020		2019
Revenues, net
United States	$	964,059	$	814,672	$	817,878
Non-United States
United Kingdom	105,734		88,659		113,036
Rest of World	52,500		55,103		60,432
Total Non-United States	158,234		143,762		173,468
Revenues, net	$	1,122,293	$	958,434	$	991,346

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
	December 31, 2021		December 31, 2020
Long-lived assets
India	$	79,604	$	97,261
United States	50,095		46,659
Philippines	22,011		29,434
Rest of World	10,990		11,439
Long-lived assets	$	162,700	$	184,793

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Revenue from Contract with Customer [Abstract]

Revenues, net

12 Months Ended

Dec. 31, 2021

Refer to Note 3 - Segment and Geographical Information to the 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
	December 31, 2021		December 31, 2020
Accounts receivable, net	$	194,232	$	147,635
Contract assets	$	2,524	$	4,437
Contract liabilities
Deferred revenue (consideration received in advance)	$	18,247	$	30,450
Consideration received for process transition activities	$	2,203	$	2,774

Accounts receivable includes $93,336 and $63,995 as of December 31, 2021 and 2020, 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 years ended December 31, 2021 and 2020, which was included in the contract liabilities balance at the beginning of the respective periods:


	Year ended December 31,
	2021		2020
Deferred revenue (consideration received in advance)	$	30,089	$	10,949
Consideration received for process transition activities	$	1,886	$	1,424

Contract acquisition and fulfillment costs

The following table provides details of the Company’s contract acquisition and fulfillment costs:


	Contract Acquisition Costs				Contract Fulfillment Costs
	Year ended December 31,				Year ended December 31,
	2021		2020		2021		2020
Opening Balance	$	1,027	$	1,307	$	5,631	$	7,255
Additions	277		310		3,742		779
Amortization	(793)		(590)		(3,578)		(2,403)
Closing Balance	$	511	$	1,027	$	5,795	$	5,631

There was no impairment for contract acquisition and contract fulfillment costs as of December 31, 2021 and 2020. The capitalized costs are amortized over the expected period of benefit of the contract.

Allowance for expected credit losses

On January 1, 2020, the Company adopted ASC Topic 326, Financial Instruments-Credit Losses. Accounts receivable and contract assets are in the scope for which assessment is made. 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 and estimates relating to the possible effects resulting from COVID-19. There was not a material impact on the provision for credit losses upon adoption of the Topic 326 guidance.

The duration and severity of COVID-19 and continued market volatility is highly uncertain and, as such, the impact on expected losses is subject to significant judgment, including but not limited to changes in customers’ credit rating, and may cause variability in the Company’s allowance for credit losses in future periods.


	As of
	December 31, 2021		December 31, 2020
Accounts receivable, including unbilled receivables	$	194,805	$	148,824
Less: Allowance for expected credit loss	(573)		(1,189)
Accounts receivable, net	$	194,232	$	147,635

The movement in “Allowance for expected credit losses” on customer balances for the years ended December 31, 2021 and 2020 was as follows:


	Year ended December 31,
	2021		2020
Balance at the beginning of the year	$	1,189	$	1,163
Additions / (reductions) during the period	(496)		300
Reductions due to write-off of Accounts Receivables	(129)		(269)
Translation adjustment	9		(5)
Balance at the end of the year	$	573	$	1,189

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Other Income and Expenses [Abstract]

Other Income, net

12 Months Ended

Dec. 31, 2021

Other Income, net

Other income, net consists of the following:


	Year ended December 31,
	2021		2020		2019
Gain on sale and mark-to-market of mutual funds and money market funds	$	4,891	$	9,615	$	13,180
Interest and dividend income	2,726		2,501		2,184
Others, net	(844)		(51)		1,143
Other income, net	$	6,773	$	12,065	$	16,507

Earnings Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

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 and restricted stock units) issued and outstanding at the reporting date, and an assumed conversion premium of outstanding convertible notes, using the treasury stock method (as discussed further in the subsequent paragraph). Common stock equivalents and the conversion premium on outstanding convertible notes that are anti-dilutive are excluded from the computation of weighted average shares outstanding. The Company includes performance stock unit awards in dilutive potential common shares when they become contingently issuable and have a dilutive impact per authoritative guidance and excludes such awards when they are not contingently issuable.

Diluted weighted-average shares outstanding is affected by the treatment of the Company's 3.5% per annum Convertible Senior Notes due October 1, 2024 (the “Notes”). The Company had a choice to settle the Notes in cash, shares or any combination of the two. The Company intended and had the ability to settle the principal balance of the Notes in cash, and as such, the Company applied the treasury stock method. The dilution related to the conversion premium, if any, of the Notes is included in the calculation of diluted weighted-average shares outstanding for the portion of the period until actual settlement and to the extent the issuance is dilutive based on the average stock price during the reporting period being greater than the conversion price of $75. During the third quarter of 2021, the Company settled the Notes by electing a combination of cash and shares of the Company’s common stock and as such included the count of shares issued on settlement in the calculation of basic earnings per share for the portion of the period outstanding. Refer to Note 17 - Borrowings to the consolidated financial statements for further details.

The following table sets forth the computation of basic and diluted earnings per share:


	Year ended December 31,
	2021		2020		2019
Numerators:
Net income	$	114,758	$	89,476	$	67,659
Denominators:
Basic weighted average common shares outstanding	33,549,275		34,273,388		34,350,150
Dilutive effect of share based awards	408,693		254,717		382,533
Dilutive effect of conversion premium on the Notes	286,510		27,059		—
Diluted weighted average common shares outstanding	34,244,478		34,555,164		34,732,683
Earnings per share attributable to ExlService Holdings Inc. stockholders:
Basic	$	3.42	$	2.61	$	1.97
Diluted	$	3.35	$	2.59	$	1.95
Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share	10,705		289,061		106,375

Cash, Cash Equivalents and Restricted Cash

12 Months Ended

Dec. 31, 2021

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents and Restricted Cash

For the purpose of statements of cash flows, cash, cash equivalents and restricted cash comprise of the following:


	As of
	December 31, 2021		December 31, 2020		December 31, 2019
Cash and cash equivalents	$	135,337	$	218,530	$	119,165
Restricted cash (current)	6,174		4,690		5,453
Restricted cash (non-current)	2,299		2,299		2,426
Cash, cash equivalents and restricted cash	$	143,810	$	225,519	$	127,044

Property and Equipment, net

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and equipment, net consists of the following:


		As of
	Estimated useful lives (Years)	December 31, 2021		December 31, 2020
Owned Assets:
Network equipment and computers	3-5	$	116,023	$	107,016
Software	3-5	101,884		99,708
Leasehold improvements	3-8	46,401		48,052
Office furniture and equipment	3-8	22,302		22,210
Motor vehicles	2-5	693		599
Buildings	30	1,070		1,089
Land	—	700		712
Capital work in progress	—	10,288		4,647
		299,361		284,033
Less: Accumulated depreciation and amortization		(213,699)		(191,629)
		$	85,662	$	92,404
Right-of-use assets under finance leases:*
Network equipment and computers		91		93
Leasehold improvements		1,229		817
Office furniture and equipment		787		255
Motor vehicles		578		688
		2,685		1,853
Less: Accumulated depreciation and amortization		(2,339)		(1,382)
		$	346	$	471
Property and equipment, net		$	86,008	$	92,875

*Depreciation on assets held under finance leases are computed using the straight-line method over the shorter of the asset's 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 years ended December 31, 2021 and 2020 there were no 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 consolidated statements of income was as follows:


	Year ended December 31,
	2021		2020		2019
Depreciation and amortization expense	$	36,354	$	36,050	$	30,423

The effect of foreign exchange gain upon settlement of cash flow hedges recorded under depreciation and amortization, was as follows:


	Year ended December 31,
	2021		2020		2019
Effect of foreign exchange gains	$	524	$	51	$	212

Internally developed software costs, included under Software, was as follows:


	As of
	December 31, 2021		December 31, 2020
Cost	$	19,289	$	18,371
Less : Accumulated amortization	(10,226)		(5,998)
Internally developed software, net	$	9,063	$	12,373

The amortization expense on internally developed software recognized in the consolidated statements of income was as follows:


	Year ended December 31,
	2021		2020		2019
Amortization expense	$	4,253	$	4,894	$	2,745

As of December 31, 2021 and 2020, 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 assurances 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, and the asset’s residual value, if any. It is reasonably possible that the judgments and estimates described above could change in future periods. The duration and severity of COVID-19 and continued market volatility is highly uncertain and, as such, the impact on undiscounted cash flows is subject to significant judgment and may cause variability in the Company’s assessment of the existence of any impairment.

During the year ended December 31, 2019, the Company performed an impairment test of its long-lived assets related to its Health Integrated business. Based on the results, the long-lived assets carrying value exceeded its fair value. The primary factor contributing to a reduction in the fair value is the wind down of the Health Integrated business, due to an anticipated reduction to the Company's estimated future cash flows. As a result of this analysis, the Company recognized impairment charges of $2,178 during the year ended December 31, 2019, to write down the carrying value of property and equipment to its fair value. This impairment charge was recorded in the consolidated statements of income under "Impairment and restructuring charges".

Business Combinations, Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Business Combinations

Business Combinations, Goodwill and Intangible Assets

Clairvoyant AI Inc.

On December 16, 2021, the Company, through its wholly owned subsidiary ExlService.com, LLC (“Buyer”), completed the acquisition of Clairvoyant, a Delaware corporation, pursuant to an equity securities purchase agreement dated December 16, 2021 (the "Purchase Agreement"). The Company purchased 100% of the issued and outstanding equity securities in Clairvoyant.

Clairvoyant is a global technology consulting and services company that helps organizations in their business transformation by maximizing the value of data through actionable insights. It provides data engineering, analytics, machine learning, product engineering, and cloud-based solutions. The acquisition strengthens the Company’s capabilities by adding additional expertise in data engineering and cloud enablement, further supporting its clients in insurance, healthcare, banking and financial services, and retail.

The base purchase consideration payable at Closing was $80,080, excluding cash and cash equivalents acquired, debt and other estimated post-closing adjustments. As of December 31, 2021, of the total purchase consideration, the Company has paid

$76,831, net of cash and cash equivalents acquired. The Purchase Agreement also allows sellers the ability to earn up to $20,000 in earn-out payments, based on the achievement of certain performance goals by Clairvoyant during 2022 and 2023 calendar years. The earn-out has an estimated fair value of $9,000 and has been presented as contingent consideration under “Other non-current liabilities.” A portion of the purchase consideration otherwise payable was placed into escrow as security for the post-closing working capital adjustments and the indemnification obligations under the Purchase Agreement. To finance the acquisition at Closing, the Company utilized its revolving Credit Facility in the amount of $75,000 and paid the balance with available cash on hand.

The Company is in the process of finalizing the adjustments related to debt, working capital position and other post- closing adjustments, which, when determined, may result in the recognition of additional assets or liabilities as of the acquisition date, and shall accordingly lead to finalization of the purchase consideration.

The Company accounted for the business combination using the acquisition method of accounting. The measurement period will not exceed one year from the acquisition date.

Pursuant to the Company’s business combinations accounting policy, the aggregate purchase consideration for Clairvoyant was allocated to identifiable net tangible and intangible assets based upon their preliminary fair values. The excess of the estimated purchase consideration over fair value of identifiable net tangible and intangible assets was recorded as goodwill. In order to allocate the consideration transferred for Clairvoyant, the fair values of all identifiable assets and liabilities must be established. For accounting and financial reporting purposes, fair value is defined under ASC No. 820, Fair Value Measurement and Disclosure, as the price that would be received upon sale of an asset or the amount paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are assumed to be buyers and sellers in the principal (most advantageous) market for the asset or liability. Additionally, fair value measurements for an asset assume the highest and best use of that asset by market participants. Use of different estimates and judgments could yield different results.

The Company’s preliminary purchase price allocation to net tangible and intangible assets of Clairvoyant as of December 16, 2021 is as follows:


Assets:
Cash and cash equivalents	$	5,606
Accounts receivable, net	9,042
Other current assets	352
Property and equipment, net	399
Intangible assets, net
Customer relationships	31,600
Developed technology	2,070
Trade names and trademarks	300
Non-compete agreements	300
Other assets	376
Total assets	$	50,045

Liabilities:
Accounts payable	(1,241)
Accrued expenses and other current liabilities	(4,833)

Deferred tax liabilities	(9,383)
Other non-current liabilities	(238)
Total liabilities	(15,695)

Net assets acquired	34,350
Goodwill	55,225
Total purchase consideration*	$	89,575

* Includes contingent consideration of $9,000 recognized at fair value.

The fair value of assets acquired and liabilities assumed from the acquisition of Clairvoyant is based on a preliminary valuation and, as such, the Company's estimates and assumptions are subject to change within the measurement period. The primary areas of the purchase price allocation that are not yet finalized are related to direct and indirect taxes and reflect management’s best estimates and assumptions as of the reporting date.

The fair values of customer relationships were determined by using an “income approach,” specifically the Multi-Period Excess Earnings Method ("MPEEM"). The MPEEM is a specific application of the discounted cash flow method. The principle behind the MPEEM is that the value of an intangible asset is equal to the present value of the incremental after-tax cash flows attributable only to the subject intangible asset after deducting Contributory Asset Charges ("CAC"). The principle behind a CAC is that an intangible asset ‘rents’ or ‘leases’ from a hypothetical third party all the assets it requires to produce the cash flows resulting from its development, that each project rents only those assets it needs (including elements of goodwill) and not the ones that it does not need, and that each project pays the owner of the assets a fair return on (and of, when appropriate) the value of the rented assets. The customer relationship assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 7 years.

The fair values of the developed technology intangible assets were determined by using the "cost approach," specifically the replacement cost method. In the replacement cost approach, the fair value of an asset is based on the cost of a market participant to reconstruct a substitute asset of comparable utility, adjusted for any obsolescence. The fair value of the asset would include the seller’s expected profit margin in the market and any opportunity costs lost over the period to reconstruct the substitute asset. The technology assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 3 years.

The goodwill recognized represents the acquired capabilities, operating synergies and other benefits expected to result from combining the acquired operations with the Company’s existing operations. The amount of goodwill recognized from Clairvoyant’s acquisition is not deductible for tax purposes. The goodwill has been assigned to the Company’s Analytics reportable segment based upon the Company’s assessment of nature of services rendered by Clairvoyant.

Acquisition-related costs are being expensed as incurred and are included in general and administrative expenses in the consolidated statements of income. The Company recognized acquisition-related costs of $761 during the year ended December 31, 2021.

The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. The acquisition did not materially impact the Company's financial position, results of operations or cash flows, and therefore, the Company has not provided unaudited supplemental pro forma results.

Goodwill

The Company transitioned to new segment reporting structure effective January 1, 2020, which resulted in certain changes to its operating segments and reporting units. The Company reallocated goodwill to its reporting units using a relative fair value approach. In addition, the Company completed an assessment of any potential goodwill impairment for all its reporting units immediately prior to the reallocation and determined that no impairment existed.

The following table sets forth details of changes in goodwill by reportable segment of the Company:


	Insurance		Healthcare		Emerging Business		Analytics		TT&L		F&A		All Other		Total
Balance at January 1, 2020	$	38,276	$	19,276	$	—	$	227,289	$	12,457	$	46,905	$	5,326	$	349,529
Goodwill reallocation(1)	12,192		2,693		49,803		—		(12,457)		(46,905)		(5,326)		—
Currency translation adjustments	31		(16)		(455)		(1)		—		—		—		(441)
Balance at December 31, 2020	$	50,499	$	21,953	$	49,348	$	227,288	$	—	$	—	$	—	$	349,088
Acquisition	—		—		—		55,225		—		—		—		55,225
Currency translation adjustments	(71)		(11)		(328)		(1)		—		—		—		(411)
Balance at December 31, 2021	$	50,428	$	21,942	$	49,020	$	282,512	$	—	$	—	$	—	$	403,902

(1) Includes effects of reallocation of goodwill because of the Company reorganizing its operating segments as described in Note 3 - Segment and Geographical Information to the consolidated financial statements.

During the fourth quarter of 2021, the Company performed its annual goodwill quantitative impairment test for those reporting units that had goodwill recorded. Key assumptions used in determining the fair value of the Company’s reporting units were, a long-term revenue growth rate in the terminal year of 3.0%, which was based upon expected long-term inflation rate and real gross domestic product growth over a long-term, and discount rates ranging from 12.0% to 12.1%, which vary based upon the risks and uncertainties inherent in each individual reporting unit. Based on the results, the fair value of each of the Company’s reporting units exceeded their carrying value and the Company’s goodwill was not impaired. During the fourth quarter of 2020, the Company performed its annual goodwill impairment test, as it has done this year, and also concluded goodwill was not impaired.

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. The Company believes there are significant opportunities for additional growth within its existing clients, and can expand these relationships by:

•Increasing the depth and breadth of the services the Company provides across its clients’ value chains and geographies;

•Offering the full suite of the Company's services that includes digital operations and solutions and data and analytics; and

•Supporting the Company's clients’ geographic expansion leveraging its global footprint.

The Company also considers selective strategic relationships with industry leaders that add new long-term client relationships, enhance the depth and breadth of its services and solutions, and complement its business strategy. Through its various Partnership programs, the Company expands its technology and innovation ecosystem with select partnerships, alliances or investments that the Company expects will enhance go-to-market opportunities and expand the scope and effectiveness of the Company’s services and solutions by adding digital assets and intellectual property, which will help the Company to win new clients or allowing it to enter new industry verticals and geographic markets.

There can be no assurances that goodwill will not be impaired in future periods. Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. These estimates and judgements may not be within the control of the Company and accordingly it is reasonably possible that the judgments and estimates described above could change in future periods. The duration and severity of COVID-19 and

continued market volatility is highly uncertain and, as such, the impact on cash flows, long-term debt-free net cash flow growth rate in the terminal year and discount rates are subject to significant judgments and may cause variability in the Company’s assessment of existence of any impairment. The Company continues to monitor the impacts of COVID-19 on the Company and significant changes in key assumptions that could result in future period impairment charges.

Intangible Assets

Information regarding the Company’s intangible assets is set forth below:


	As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	103,016	$	(33,018)	$	69,998
Developed technology	25,040		(15,850)		9,190
Trade names and trademarks	1,700		(1,006)		694
Non-compete agreements	300		—		300
	$	130,056	$	(49,874)	$	80,182
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—	$	900
Total intangible assets	$	130,956	$	(49,874)	$	81,082


	As of December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	73,357	$	(27,464)	$	45,893
Developed technology	23,510		(11,858)		11,652
Trade names and trademarks	5,100		(3,951)		1,149
	$	101,967	$	(43,273)	$	58,694
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—	$	900
Total intangible assets	$	102,867	$	(43,273)	$	59,594

The amortization expense recognized in the consolidated statements of income was as follows:


	Year ended December 31,
	2021		2020		2019
Amortization expense	$	12,778	$	14,412	$	21,558

The remaining weighted average life of intangible assets is as follows:


			(in years)
Customer relationships			6.5
Developed technologies			2.1
Trade names and trademarks (Finite lived)			2.4
Non-compete agreements			4.0


Estimated future amortization expense related to finite-lived intangible assets as of December 31, 2021 was as follows:
2022	$	17,004
2023	14,468
2024	11,966
2025	10,539
2026	10,195
2027 and thereafter	16,010
Total	$	80,182

Goodwill and Intangible Assets

Business Combinations, Goodwill and Intangible Assets

Clairvoyant AI Inc.

The Company accounted for the business combination using the acquisition method of accounting. The measurement period will not exceed one year from the acquisition date.

The Company’s preliminary purchase price allocation to net tangible and intangible assets of Clairvoyant as of December 16, 2021 is as follows:


Assets:
Cash and cash equivalents	$	5,606
Accounts receivable, net	9,042
Other current assets	352
Property and equipment, net	399
Intangible assets, net
Customer relationships	31,600
Developed technology	2,070
Trade names and trademarks	300
Non-compete agreements	300
Other assets	376
Total assets	$	50,045

Liabilities:
Accounts payable	(1,241)
Accrued expenses and other current liabilities	(4,833)

Deferred tax liabilities	(9,383)
Other non-current liabilities	(238)
Total liabilities	(15,695)

Net assets acquired	34,350
Goodwill	55,225
Total purchase consideration*	$	89,575

* Includes contingent consideration of $9,000 recognized at fair value.

Goodwill

The following table sets forth details of changes in goodwill by reportable segment of the Company:


	Insurance		Healthcare		Emerging Business		Analytics		TT&L		F&A		All Other		Total
Balance at January 1, 2020	$	38,276	$	19,276	$	—	$	227,289	$	12,457	$	46,905	$	5,326	$	349,529
Goodwill reallocation(1)	12,192		2,693		49,803		—		(12,457)		(46,905)		(5,326)		—
Currency translation adjustments	31		(16)		(455)		(1)		—		—		—		(441)
Balance at December 31, 2020	$	50,499	$	21,953	$	49,348	$	227,288	$	—	$	—	$	—	$	349,088
Acquisition	—		—		—		55,225		—		—		—		55,225
Currency translation adjustments	(71)		(11)		(328)		(1)		—		—		—		(411)
Balance at December 31, 2021	$	50,428	$	21,942	$	49,020	$	282,512	$	—	$	—	$	—	$	403,902

•Increasing the depth and breadth of the services the Company provides across its clients’ value chains and geographies;

•Offering the full suite of the Company's services that includes digital operations and solutions and data and analytics; and

•Supporting the Company's clients’ geographic expansion leveraging its global footprint.

Intangible Assets

Information regarding the Company’s intangible assets is set forth below:


	As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	103,016	$	(33,018)	$	69,998
Developed technology	25,040		(15,850)		9,190
Trade names and trademarks	1,700		(1,006)		694
Non-compete agreements	300		—		300
	$	130,056	$	(49,874)	$	80,182
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—	$	900
Total intangible assets	$	130,956	$	(49,874)	$	81,082


	As of December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	73,357	$	(27,464)	$	45,893
Developed technology	23,510		(11,858)		11,652
Trade names and trademarks	5,100		(3,951)		1,149
	$	101,967	$	(43,273)	$	58,694
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—	$	900
Total intangible assets	$	102,867	$	(43,273)	$	59,594

The amortization expense recognized in the consolidated statements of income was as follows:


	Year ended December 31,
	2021		2020		2019
Amortization expense	$	12,778	$	14,412	$	21,558

The remaining weighted average life of intangible assets is as follows:


			(in years)
Customer relationships			6.5
Developed technologies			2.1
Trade names and trademarks (Finite lived)			2.4
Non-compete agreements			4.0


Estimated future amortization expense related to finite-lived intangible assets as of December 31, 2021 was as follows:
2022	$	17,004
2023	14,468
2024	11,966
2025	10,539
2026	10,195
2027 and thereafter	16,010
Total	$	80,182

Other Current Assets

12 Months Ended

Dec. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

Other current assets consist of the following:


	As of
	December 31, 2021		December 31, 2020
Receivables from statutory authorities	$	18,023	$	15,658
Derivative instruments	8,682		9,755
Advances to suppliers	1,464		3,906
Deferred contract fulfillment costs	1,483		2,888
Contract assets	1,319		1,814
Interest accrued on term deposits	892		169
Others	2,146		2,919
Other current assets	$	34,009	$	37,109

Other Assets

12 Months Ended

Dec. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

Other assets consist of the following:


	As of
	December 31, 2021		December 31, 2020
Lease deposits	$	9,649	$	9,788
Deposits with statutory authorities	6,417		6,341
Derivative instruments	6,307		6,933
Deferred contract fulfillment costs	4,312		2,743
Contract assets	1,205		2,623
Receivable from Statutory authorities	222		754
Term deposits	186		216
Others	2,071		2,701
Other assets	$	30,369	$	32,099

Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2021

Accounts Payable and Accrued Liabilities, Current [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:


	As of
	December 31, 2021		December 31, 2020
Accrued expenses	$	44,405	$	39,951
Payable to statutory authorities	13,902		10,594
Accrued capital expenditures	7,404		7,857
Client liabilities	6,097		4,740
Derivative instruments	1,852		435
Interest payable	252		1,399
Finance lease liabilities	141		229
Other current liabilities	1,071		1,205
Accrued expenses and other current liabilities	$	75,124	$	66,410

Other Non-Current Liabilities

12 Months Ended

Dec. 31, 2021

Liabilities, Noncurrent [Abstract]

Other Non-Current liabilities

Other Non-Current Liabilities

Other non-current liabilities consist of the following:


	As of
	December 31, 2021		December 31, 2020
Retirement benefits	$	9,604	$	8,940
Contingent consideration	9,000		—
Derivative instruments	1,785		29
Deferred transition revenue	995		924
Unrecognized tax benefits	1,068		907
Finance lease liabilities	229		281
Accrued capital expenditures	—		3,486
Others	120		3,568
Other non-current liabilities	$	22,801	$	18,135

Accumulated Other Comprehensive Income/( Loss)

12 Months Ended

Dec. 31, 2021

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 exchange contracts, which are designated as cash flow hedges and net investment hedges in accordance with ASC 815. Cumulative changes in the fair values of these foreign currency exchange contracts are recognized in AOCI on the Company's consolidated balance sheets. Upon settlement of foreign exchange contracts designated as cash flow hedges, fair value changes are reclassified from AOCI to net income, whereas such fair value changes related to net investment hedges are included in net income when a foreign operation is disposed or partially disposed. The balances as of December 31, 2021 and 2020 are as follows:


	Accumulated Other Comprehensive Income/(Loss)
	Foreign currency translation loss		Unrealized gain on cash flow hedges		Retirement benefits		Total
Balance as of January 1, 2020	$	(87,591)	$	4,098	$	(1,399)	$	(84,892)
Gains / (losses) recognized during the year	(540)		12,665		(2,401)		9,724
Reclassification to net income (1)	—		(801)		394		(407)
Income tax effects (2)	1,946		(2,163)		808		591
Accumulated other comprehensive income/(loss) as of December 31, 2020	$	(86,185)	$	13,799	$	(2,598)	$	(74,984)
Gains / (losses) recognized during the year	(11,134)		4,663		(558)		(7,029)
Losses on net investment hedges	(1,134)		—		—		(1,134)
Reclassification to net income (1)	—		(9,264)		709		(8,555)
Income tax effects (2)	3,016		(778)		(10)		2,228
Accumulated other comprehensive income/(loss) as of December 31, 2021	$	(95,437)	$	8,420	$	(2,457)	$	(89,474)

1.Refer to Note 16 - Derivatives and Hedge Accounting and Note 19 - Employee Benefit Plans to the 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 gains / (losses). Refer to Note 21 - Income Taxes to the consolidated financial statements.

Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

ASC Topic 820, “Fair Value Measurements and Disclosures” ("ASC 820") defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability as against assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk.

Assets and Liabilities Measured at Fair Value

The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of December 31, 2021 and 2020.


	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
As of December 31, 2021	(Level 1)		(Level 2)		(Level 3)		Total
Assets
Cash and cash equivalents (money market funds)*	$	5,374	$	—	$	—	$	5,374
Mutual funds**	$	127,551	$	—	$	—	$	127,551
Derivative financial instruments	$	—	$	14,989	$	—	$	14,989
Total	$	132,925	$	14,989	$	—	$	147,914
Liabilities
Derivative financial instruments	$	—	$	3,637	$	—	$	3,637
Contingent consideration	$	—	$	—	$	9,000	$	9,000
Total	$	—	$	3,637	$	9,000	$	12,637

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
As of December 31, 2020	(Level 1)		(Level 2)		(Level 3)		Total
Assets
Cash and cash equivalents (money market funds)*	$	13,463	$	—	$	—	$	13,463
Mutual funds**	$	160,441	$	—	$	—	$	160,441
Derivative financial instruments	$	—	$	16,688	$	—	$	16,688
Total	$	173,904	$	16,688	$	—	$	190,592
Liabilities
Derivative financial instruments	$	—	$	464	$	—	$	464
Total	$	—	$	464	$	—	$	464

* Represents money market funds which are carried at the fair value option under ASC 825 "Financial Instruments".

** Represents those short-term investments which are carried at the fair value option under ASC 825 "Financial Instruments".

Derivative Financial Instruments: The Company’s derivative financial instruments consist of foreign currency forward exchange contracts. 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 16 - Derivatives and Hedge Accounting to the 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 its acquisition of Clairvoyant. The measurement is calculated using unobservable inputs based on the Company’s own assessment of achievement of certain performance goals by Clairvoyant during 2022 and 2023 calendar years. The Company estimated the fair value of the contingent consideration to be $9,000, based on Monte Carlo simulation model and scenario-based method.

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, accrued interest on term deposits, accrued capital expenditures, accrued expenses and interest payable on borrowings for which fair values approximate their carrying amounts due to their short-term nature. 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.

Convertible Senior Notes:

The Company settled the Notes during the year ended December 31, 2021. Refer to Note 17 - Borrowings to the consolidated financial statements for further details.

The total estimated fair value of the Notes as of December 31, 2020 was $152,384. The fair value was determined based on market yields for similar convertible notes as of December 31, 2020. The Company considers the fair value of the Notes to be a Level 2 measurement due to the limited inputs available for its fair valuation.

Nonrecurring fair value measurements of assets:

Nonrecurring fair value measurements include impairment tests of goodwill conducted by the Company during the years ended December 31, 2021 and 2020. The fair value determination of the Company's reporting units was based on a combination of the income approach, using DCF model, which are Level 3 inputs, and also the market approach, as applicable, using market multiples for reporting units, which are Level 2 inputs. During the years ended December 31, 2021 and 2020, the Company did not recognize any impairment charges on goodwill as the fair values of the reporting units exceeded their carrying value. Refer to Note 9 - Business Combinations, Goodwill and Intangible Assets to the consolidated financial statements for further details.

During the year ended December 31, 2019, the Company conducted impairment tests of its long-lived assets and ROU assets related to its Health Integrated business. The fair value determination for ROU assets was based on third party quotes, which are Level 2 inputs, and for other long-lived assets, it was based on Company’s internal assessment, which are Level 3 inputs. During the year ended December 31, 2019, the Company recognized impairment charges on long-lived assets and ROU assets to write down the carrying value to their fair values. Refer to Note 8 - Property and Equipment, net and Note 20 - Leases to the consolidated financial statements for further details.

Derivatives and Hedge Accounting

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedge Accounting

The Company uses derivative instruments and hedging transactions to mitigate exposure to foreign currency fluctuation risks associated with forecasted transactions denominated in certain foreign currencies so as to minimize earnings and cash flow volatility associated with changes in foreign currency exchange rates. The Company’s derivative financial instruments are largely forward foreign exchange contracts that are designated as effective hedges and that qualify as cash flow hedges under ASC 815. The Company had outstanding cash flow hedges totaling $514,580 as of December 31, 2021 and $451,935 as of December 31, 2020.

Changes in the fair value of these cash flow hedges are recorded as a component of accumulated other comprehensive income/(loss), net of tax, until the hedged transactions occurs. The resultant foreign exchange gain/(loss) upon settlement of these cash flow hedges is recorded along with the underlying hedged item in the same line of consolidated statements of income as a part of “Cost of revenues,” “General and administrative expenses,” “Selling and marketing expenses,” and “Depreciation and amortization expense,” as applicable.

The Company evaluates hedge effectiveness at the time a contract is entered into as well as on an ongoing basis. For hedging positions that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related amounts recorded in equity are reclassified to earnings.

The Company estimates that approximately $7,345 of derivative gains, net, excluding tax effects, included in AOCI, representing changes in the value of cash flow hedges, could be reclassified into earnings within the next twelve months based

on exchange rates prevailing as of December 31, 2021. At December 31, 2021, the maximum outstanding term of the cash flow hedges was 42 months.

The Company also enters into foreign currency forward contracts to economically hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies, against the risk of foreign currency fluctuations associated with remeasurement of such assets and liabilities to functional currency. These derivatives do not qualify as fair value hedges under ASC 815. Changes in the fair value of these derivatives are recognized in the 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 U.K. pound sterling (GBP) and the Philippine peso. The Company also has exposure to Colombian pesos (COP), Czech koruna, the Euro (EUR), South African ZAR, the Australian dollar (AUD) and other local currencies in which it operates. Outstanding foreign currency forward contracts amounted to USD 134,612, GBP 6,763, EUR 1,343 and COP 2,541,902 as of December 31, 2021 and USD 143,394, GBP 6,753, EUR 2,447 and COP 8,287,950 as of December 31, 2020.

The Company uses forward contracts designated as net investment hedges to hedge the foreign currency risks related to our investments in foreign subsidiaries. Gains and losses on these net investment hedges are recognized in AOCI as part of foreign currency translation adjustments.

All of the assets and liabilities related to our foreign exchange forward contracts are subject to master netting arrangements with each individual counterparty. These master netting arrangements generally provide for net settlement of all outstanding contracts with the counterparty in the case of an event of default or a termination event. We have presented all of the assets and liabilities related to our foreign exchange forward contracts on a gross basis, with no offsets, in our consolidated statements of financial position. There is no financial collateral (including cash collateral) provided or received by us related to our foreign exchange forward contracts.

The following tables set forth the fair value of the foreign currency exchange contracts and their location on the consolidated financial statements:


Derivatives designated as hedging instruments:	As of
Foreign currency exchange contracts	December 31, 2021		December 31, 2020
Other current assets	$	8,669	$	9,740
Other assets	$	6,307	$	6,933
Accrued expenses and other current liabilities	$	1,324	$	176
Other non-current liabilities	$	1,785	$	29

Derivatives not designated as hedging instruments:	As of
Foreign currency exchange contracts	December 31, 2021		December 31, 2020
Other current assets	$	13	$	15
Accrued expenses and other current liabilities	$	528	$	259

The following tables set forth the effect of foreign currency exchange contracts on the consolidated statements of income and accumulated other comprehensive income/(loss) for the years ended December 31, 2021, 2020 and 2019.


	Year ended December 31,
Forward Exchange Contracts:	2021		2020		2019
Unrealized gain recognized in AOCI
Derivatives in cash flow hedging relationships	$	4,663	$	12,665	$	8,773

Gain recognized in consolidated statements of income
Derivatives not designated as hedging instruments	$	196	$	3,686	$	3,208

Location and amount of gain/(loss) recognized in consolidated statements of income for cash flow hedging relationships and derivatives not designated as hedging instruments:


	Year ended December 31,
	2021				2020				2019
	As per consolidated statements of income		Gain on foreign currency exchange contracts		As per consolidated statements of income		Gain/(loss) on foreign currency exchange contracts		As per consolidated statements of income		Gain on foreign currency exchange contracts
Cash flow hedging relationships
Location in consolidated statements of income where gain/(loss) was reclassed from AOCI

Cost of revenues	$	690,934	$	7,785	$	623,936	$	1,008	$	655,490	$	3,269
General and administrative expenses	$	142,040	$	948	$	113,891	$	(161)	$	126,909	$	424
Selling and marketing expenses	$	84,306	$	53	$	60,123	$	(5)	$	71,842	$	46
Depreciation and amortization expense	$	49,132	$	478	$	50,462	$	(41)	$	51,981	$	212
Total before tax			$	9,264			$	801			$	3,951
Income tax benefit/(expense) relating to above			$	(1,530)			$	500			$	(1,173)
Net of tax			$	7,734			$	1,301			$	2,778

Derivatives not designated as hedging instruments
Location in consolidated statements of income where gain was recognized

Foreign exchange gain, net	$	4,313	$	196	$	4,432	$	3,686	$	3,752	$	3,208
	$	4,313	$	196	$	4,432	$	3,686	$	3,752	$	3,208

Effect of net investment hedges on accumulated other comprehensive income/(loss):


	Year ended December 31,
	Amount of loss recognized in AOCI
Net investment hedging relationships	2021		2020		2019
Foreign exchange contracts	$	1,134	$	—	$	—

Borrowings

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Borrowings

The following tables summarizes the Company’s debt position as of December 31, 2021 and 2020.


	As of December 31, 2021				As of December 31, 2020
	Revolving Credit Facility		Total		Revolving Credit Facility		Notes		Total
Current portion of long-term borrowings	$	260,016	$	260,016	$	25,000	$	—	$	25,000

Long-term borrowings	$	—	$	—	$	64,000	$	150,000	$	214,000
Unamortized debt discount	—		—		—		(11,236)		(11,236)
Unamortized debt issuance costs*	—		—		—		(803)		(803)
Long-term borrowings	$	—	$	—	$	64,000	$	137,961	$	201,961
Total borrowings	$	260,016	$	260,016	$	89,000	$	137,961	$	226,961

*Unamortized debt issuance costs for the Company’s revolving Credit Facility of $232 and $490 as of December 31, 2021 and 2020, respectively, are presented under “Other current assets” and “Other assets,” as applicable in the consolidated balance sheets.

Credit Agreement

On November 21, 2017, the Company and each of the Company’s wholly owned material domestic subsidiaries entered into a Credit Agreement with certain lenders, and Citibank, N.A. as Administrative Agent (the “Credit Agreement”). The Credit Agreement provides for a $200,000 revolving credit facility (the “Credit Facility”) with an option to increase the commitments by up to $100,000, subject to certain approvals and conditions as set forth in the Credit Agreement. The Credit Agreement also includes a letter of credit sub facility. The Credit Facility has a maturity date of November 21, 2022 and is voluntarily pre-payable from time to time without premium or penalty. Borrowings under the Credit Agreement may be used for working capital and general corporate purposes, including permitted acquisitions. On July 2, 2018, the Company exercised its option under the Credit Agreement to increase the commitments by $100,000 thereby utilizing the entire revolver under the Credit Facility of $300,000 to fund the Company’s July 2018 acquisition of SCIO.

Depending on the type of borrowing, loans under the Credit Agreement bear interest at a rate equal to the specified prime rate (alternate base rate) or adjusted LIBO rate, plus, in each case, an applicable margin. The applicable margin is tied to the Company’s total net leverage ratio and ranges from 0% to 0.75% per annum with respect to loans pegged to the specified prime rate, and 1.00% to 1.75% per annum on loans pegged to the adjusted LIBO rate. The revolving credit commitments under the Credit Agreement are subject to a commitment fee which is also tied to the Company’s total net leverage ratio, and ranges from 0.15% to 0.30% per annum on the average daily amount by which the aggregate revolving commitments exceed the sum of outstanding revolving loans and letter of credit obligations.

The revolving Credit Facility carried an effective interest rate as shown below.


	Year ended December 31,
	2021		2020		2019
Effective Interest Rate	1.7	%	2.3	%	4.0	%

Obligations under the Credit Agreement are guaranteed by the Company’s material domestic subsidiaries and are secured by all or substantially all of the assets of the Company and its material domestic subsidiaries. The 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 assets or subsidiaries. In addition, the Credit Agreement contains a covenant to not permit the interest coverage ratio (the ratio of EBITDA to cash interest expense) or the total net leverage ratio (total funded indebtedness, less unrestricted domestic cash and cash equivalents not to exceed $50,000 to EBITDA) for the four consecutive quarter period ending on the last day of each fiscal quarter, to be less than 3.5 to 1.0 or more

than 3.0 to 1.0, respectively. As of December 31, 2021, the Company was in compliance with all financial and non-financial covenants listed under the Credit Agreement.

The Company entered into a second amendment and a third amendment (the “Amendments”) to its Credit Agreement, as amended, among the Company, as borrower, with certain lenders, and Citibank, N.A. as Administrative Agent to, among other things, permit the issuance by the Company of the convertible notes, and settlement upon maturity or conversion thereof, in accordance with the Investment Agreement, the indenture dated as of October 4, 2018 and the other documents entered into in connection therewith and the change in definition of restricted payments in connection with the Company’s share-buyback plan.

Convertible Senior Notes

On October 1, 2018, the Company entered into an investment agreement (the “Investment Agreement”) with Orogen Echo LLC (the “Purchaser”), an affiliate of The Orogen Group LLC, relating to the issuance to the Purchaser of $150,000, in an aggregate principal amount of the Notes. The transactions contemplated by the Investment Agreement, including the issuance of the Notes, closed on October 4, 2018. The Notes carried interest at a rate of 3.5% per annum, payable semi-annually in arrears in cash on April 1 and October 1 of each year. The Notes were convertible at an initial conversion rate of 13.3333 shares of the common stock per one thousand dollar principal amount of the Notes (which represented an initial conversion price of approximately $75 per share). The Company had the option to redeem the principal amount of the Notes, at its option, in whole but not in part, at a purchase price equal to the principal amount plus accrued and unpaid interest on or after October 1, 2021, if the closing sale price of the common stock exceeded 150% of the then-current conversion price for 20 or more trading days in the 30 consecutive trading day period preceding the Company’s exercise of this redemption right (including the trading day immediately prior to the date of the notice of redemption). The Company had the option to elect to settle conversions of the Notes by paying or delivering, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock.

The Notes carried an effective interest rate as shown below:


	Year ended December 31,
	2021		2020		2019
Effective Interest Rate	3.6	%	3.6	%	3.6	%

On August 27, 2021, the Company entered into a Payoff and Termination Agreement (the “Payoff and Termination Agreement”) with the Purchaser, pursuant to which the Company prepaid and settled its outstanding obligations under the Notes for an aggregate consideration of $236,742, excluding accrued and unpaid interest under the Notes calculated through, and including, August 26, 2021, in the form of a combination of cash and shares of the Company’s common stock. As a result, the Company made a cash payment of $200,000 to the Purchaser and satisfied the remainder of the obligation under the Notes by issuing to the Purchaser 310,394 shares of the Company’s common stock calculated at $118.37 per share based on a 20-day volume weighted average price ending on, and including, August 26, 2021. The Company satisfied the cash payment obligation under the Payoff and Termination Agreement by drawing $200,000 from its existing revolving Credit Facility, and the Company’s common stock was issued from its existing treasury shares. Refer to Note 18 - Capital Structure to the consolidated financial statements for further details.

The aggregate consideration of $236,742 was allocated between the debt and equity components in an amount of $152,742 and $84,000, respectively. The consideration was first allocated to the fair value of debt component and the remaining was allocated to the equity component. The fair value of the debt component was calculated using a discounted cash flow technique, which considered debt issuances with similar features of the Company’s debt, without the conversion feature. The resulting effective interest rate for the Notes was 2.9% per annum at the time of settlement. The portion allocated to the equity component was recorded as additional paid-in capital.

Immediately prior to the settlement of the Notes, the carrying amount of the debt component of the Notes, net of unamortized debt discount and issuance costs, was $139,897. During the year ended December 31, 2021, the Company recognized a loss on settlement of the Notes of $12,845, representing the difference between the fair value of the consideration allocated to the debt component and the carrying value of the debt component immediately before settlement, and is presented as “Loss on settlement of convertible notes,” in the Company’s consolidated statements of income.

During the years ended December 31, 2021, 2020 and 2019, the Company recognized interest expense and amortization of debt discount on the Notes as below:


	Year ended December 31,
		2021		2020		2019
Interest expense on the Notes		$	3,442	$	5,250	$	5,206
Amortization of debt discount on the Notes		$	1,795	$	2,616	$	2,472

Expected payments for all of the Company's borrowings as of December 31, 2021 were as follows:


	Revolving Credit Facility		Interest payments
2022	$	260,016	$	2,510

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 December 31, 2021 and 2020, the Company had outstanding letters of credit of $461, each, that were not recognized in the consolidated balance sheets.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Capital Structure

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Capital Structure

Common Stock

The Company has one class of common stock outstanding.

The Company purchased shares of 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)
Twelve months ended December 31, 2021	31,309	$	2,752	$	87.90
Twelve months ended December 31, 2020	28,052	$	2,131	$	75.96
Twelve months ended December 31, 2019	23,859	$	1,490	$	62.47

On December 16, 2019, the Company’s Board of Directors authorized a $200,000 common stock repurchase program beginning January 1, 2020 through December 31, 2022 (the “2019 Repurchase Program”).

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”), and terminated the 2019 Repurchase Program on December 31, 2021.

Under the 2022 Repurchase Program and 2019 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, including commissions, under repurchase programs, as below:


	Shares repurchased	Total consideration		Weighted average purchase price per share (1)
Twelve months ended December 31, 2021	1,087,325	$	115,605	$	106.32
Twelve months ended December 31, 2020	1,085,153	$	77,818	$	71.71
Twelve months ended December 31, 2019	643,486	$	39,874	$	61.96

(1) The weighted average purchase price per share was the closing price of the Company's share of common stock on the Nasdaq Global Select Market on the trading day prior to the vesting date of the shares of restricted stock.

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.

In connection with the settlement of the Notes, the Company issued to the Purchaser 310,394 shares of the Company's common stock. This common stock was issued from the Company’s existing treasury shares. The excess of issuance price of the Company’s treasury stock over its weighted average cost was recognized in additional paid-in-capital.

Dividends

The Company has not paid or declared any cash dividends on its common stock during the years ended December 31, 2021, 2020 and 2019. The Company’s line of credit with a bank could restrict, the Company’s ability to declare or make any dividends or similar distributions.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Employee Benefit Plans

The 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 benefit obligation has been measured as of December 31, 2021. The following table sets forth the activity and the funded status of the Gratuity Plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods:

Change in projected benefit obligation, was as follows:


	2021		2020
Projected benefit obligation as of January 1	$	20,466	$	15,311
Service cost	3,512		2,706
Interest cost	929		964
Benefits paid	(1,844)		(878)
Acquisition adjustments	209		—
Actuarial loss*	539		2,425
Effect of exchange rate changes	(540)		(62)
Projected benefit obligation as of December 31	$	23,271	$	20,466
Unfunded amount-non-current	$	9,604	$	8,940
Unfunded amount-current	62		14
Total accrued liability	$	9,666	$	8,954
Accumulated benefit obligation	$	14,794	$	12,490

Accumulated benefit obligation in excess of plan assets	$	1,189	$	978

*During the year ended December 31, 2021, actuarial loss was driven by experience adjustments on present value of benefit obligations offset by changes in actuarial assumptions. During the year ended December 31, 2020, actuarial loss was driven by changes in actuarial assumptions, offset by experience adjustments on present value of benefit obligations.

Components of net periodic benefit costs, were as follows:


	Year ended December 31,
	2021		2020		2019
Service cost	$	3,512	$	2,706	$	1,953
Interest cost	929		964		875
Expected return on plan assets	(796)		(636)		(568)
Amortization of actuarial (gain)/loss, gross of tax	709		394		(159)
Net gratuity cost	$	4,354	$	3,428	$	2,101

Income tax effects on amortization of actuarial (gain)/loss	(204)		(127)		16
Amortization of actuarial (gain)/loss, net of tax	$	505	$	267	$	(143)

The components of actuarial gain/(loss) on retirement benefits included in accumulated other comprehensive income/(loss), excluding tax effects, were as follows:


	As of December 31,
	2021		2020		2019
Net actuarial loss	$	(3,624)	$	(3,772)	$	(1,762)
Net prior service cost	(12)		(15)		(18)
Accumulated other comprehensive income/(loss), excluding tax effects	$	(3,636)	$	(3,787)	$	(1,780)

The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost were:


	December 31,
	2021		2020		2019
Discount rate	5.6	%	4.6	%	6.5	%
Rate of increase in compensation levels	7.6	%	7.1	%	6.0	%
Expected long-term rate of return on plan assets per annum	6.8	%	7.0	%	7.5	%

The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are either based on current market yields on government securities or yields on government securities adjusted for a suitable risk premium, if available.


Expected benefit payments during the year ending December 31,
2022	$	3,165
2023	$	2,979
2024	$	2,738
2025	$	2,464
2026	$	2,162
2027 to 2031	$	8,006

The India Plan is partially funded whereas the Philippines plan is unfunded. The Company makes annual contributions to the employees' gratuity fund of the India Plan established with Life Insurance Corporation of India and HDFC Standard Life Insurance Company. 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 earned a return of approximately 6.7% per annum on the India Plan for the year ended December 31, 2021.


Change in Plan Assets
Plan assets at January 1, 2020	$	8,784
Actual return	661
Employer contribution	3,099
Benefits paid*	(869)
Effect of exchange rate changes	(163)
Plan assets at December 31, 2020	$	11,512
Actual return	777
Employer contribution	3,361
Benefits paid*	(1,835)
Effect of exchange rate changes	(210)
Plan assets at December 31, 2021	$	13,605

* Benefits payments were substantially made from the plan assets during the year.

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 contribution plan. The Company may make discretionary contributions of up to a maximum of 4.0% of employee compensation within certain limits.

The Company's accrual for contributions to the 401(k) Plans were as follows:


	Year ended December 31,
	2021		2020		2019
Contribution to the 401(k) Plans	$	3,693	$	3,577	$	3,617

The Company's contribution for various defined benefit plans on behalf of employees in India, the Philippines, the Czech Republic, South Africa, Canada, Colombia, Australia and Singapore were as follows:


	Year ended December 31,
	2021		2020		2019
Contribution to the defined benefit plans	$	16,340	$	11,332	$	10,614

The entire disclosure for retirement benefits.

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-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

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 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. In assessment of the lease term, the Company considers the extension option as part of its lease term for those lease arrangements where the Company is reasonably certain of availing the extension option. As part of the Company’s effort to moderate the impact of COVID-19, the Company continued to evaluate its office facilities to determine where it can exit, consolidate, or otherwise optimize its use of office space. During the years ended December 31, 2021 and 2020, the Company changed the lease term for certain of its leases and recognized the resultant amount of the remeasurement of the lease liability as an adjustment to the ROU assets.

The impact of COVID-19 on the economic environment is uncertain and has caused variability in the determination of the incremental borrowing rate and extension option, which have an impact on measurement of lease liabilities and ROU assets.

Supplemental balance sheet information


	As of
	December 31, 2021		December 31, 2020
Operating Lease
Operating lease right-of-use assets	$	76,692	$	91,918

Operating lease liabilities – Current	$	18,487	$	18,894
Operating lease liabilities – Non-current	68,506		84,874
Total operating lease liabilities	$	86,993	$	103,768

Finance Lease
Property and equipment, gross	$	2,685	$	1,853
Accumulated depreciation	(2,339)		(1,382)
Property and equipment, net	$	346	$	471

Finance lease liabilities – Current	$	141	$	229
Finance lease liabilities – Non-current	229		281
Total finance lease liabilities	$	370	$	510

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 consolidated statements of income, are as follows:


Lease cost	Year ended December 31, 2021		Year ended December 31, 2020
Finance lease:
Amortization of right-of-use assets	$	188	$	235
Interest on lease liabilities	63		81
	$	251	$	316
Operating lease(a)	26,326		27,146
Variable lease costs	7,621		8,496
	$	33,947	$	35,642

Total lease cost	$	34,198	$	35,958

(a) Includes short-term leases, which are immaterial.

Supplemental cash flow and other information related to leases are as follows:


	Year ended December 31, 2021		Year ended December 31, 2020
Cash payments for amounts included in the measurement of lease liabilities :
Operating cash outflows for operating leases	$	25,674	$	26,589
Operating cash outflows for finance leases	$	63	$	81
Financing cash outflows for finance leases	$	201	$	249
Right-of-use assets obtained in exchange for new operating lease liabilities	$	4,547	$	18,765
Right-of-use assets obtained in exchange for new finance lease liabilities	$	71	$	45
Weighted-average remaining lease term (in years)
Finance lease	2.1 years		1.8 years
Operating lease	5.8 years		6.3 years
Weighted-average discount rate
Finance lease	14.5%		10.5%
Operating lease	7.2%		7.4%

The Company determines the incremental borrowing rate by adjusting the benchmark reference rates, with appropriate financing spreads applicable to the respective geographies where the leases were entered and lease specific adjustments for the effects of collateral.

During the years ended December 31, 2021 and 2020, the Company modified certain of its operating leases resulting in a reduction of its lease liabilities by $2,917 and $3,143 respectively, with a corresponding reduction in ROU assets.

As of December 31, 2021, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company.

During the years ended December 31, 2021 and 2020, the Company recognized nil impairment on ROU assets. During the year ended December 31, 2019, the Company recognized an impairment charge on ROU assets related to its Health Integrated business of $1,449, to write down the carrying value of operating lease right-of-use assets to its fair value. This impairment charge was recorded in the consolidated statements of income under “Impairment and restructuring charges.”

Maturities of lease liabilities as of December 31, 2021 were as follows:


	Operating Leases		Finance Leases
2022	$	24,020	$	185
2023	22,666		147
2024	17,745		72
2025	10,741		34
2026	8,395		17
2027 and thereafter	25,198		—
Total lease payments	$	108,765	$	455
Less: Imputed interest	21,772		85
Present value of lease liabilities	$	86,993	$	370

Maturities of lease liabilities as of December 31, 2020 were as follows:


	Operating Leases		Finance Leases
2021	$	25,829	$	262
2022	24,316		194
2023	22,066		114
2024	17,084		36
2025	9,749		11
2026 and thereafter	34,334		—
Total lease payments	$	133,378	$	617
Less: Imputed interest	29,610		107
Present value of lease liabilities	$	103,768	$	510

Leases

Supplemental balance sheet information


	As of
	December 31, 2021		December 31, 2020
Operating Lease
Operating lease right-of-use assets	$	76,692	$	91,918

Operating lease liabilities – Current	$	18,487	$	18,894
Operating lease liabilities – Non-current	68,506		84,874
Total operating lease liabilities	$	86,993	$	103,768

Finance Lease
Property and equipment, gross	$	2,685	$	1,853
Accumulated depreciation	(2,339)		(1,382)
Property and equipment, net	$	346	$	471

Finance lease liabilities – Current	$	141	$	229
Finance lease liabilities – Non-current	229		281
Total finance lease liabilities	$	370	$	510

The components of lease cost, which are included in the Company's consolidated statements of income, are as follows:


Lease cost	Year ended December 31, 2021		Year ended December 31, 2020
Finance lease:
Amortization of right-of-use assets	$	188	$	235
Interest on lease liabilities	63		81
	$	251	$	316
Operating lease(a)	26,326		27,146
Variable lease costs	7,621		8,496
	$	33,947	$	35,642

Total lease cost	$	34,198	$	35,958

(a) Includes short-term leases, which are immaterial.

Supplemental cash flow and other information related to leases are as follows:


	Year ended December 31, 2021		Year ended December 31, 2020
Cash payments for amounts included in the measurement of lease liabilities :
Operating cash outflows for operating leases	$	25,674	$	26,589
Operating cash outflows for finance leases	$	63	$	81
Financing cash outflows for finance leases	$	201	$	249
Right-of-use assets obtained in exchange for new operating lease liabilities	$	4,547	$	18,765
Right-of-use assets obtained in exchange for new finance lease liabilities	$	71	$	45
Weighted-average remaining lease term (in years)
Finance lease	2.1 years		1.8 years
Operating lease	5.8 years		6.3 years
Weighted-average discount rate
Finance lease	14.5%		10.5%
Operating lease	7.2%		7.4%

As of December 31, 2021, 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 December 31, 2021 were as follows:


	Operating Leases		Finance Leases
2022	$	24,020	$	185
2023	22,666		147
2024	17,745		72
2025	10,741		34
2026	8,395		17
2027 and thereafter	25,198		—
Total lease payments	$	108,765	$	455
Less: Imputed interest	21,772		85
Present value of lease liabilities	$	86,993	$	370

Maturities of lease liabilities as of December 31, 2020 were as follows:


	Operating Leases		Finance Leases
2021	$	25,829	$	262
2022	24,316		194
2023	22,066		114
2024	17,084		36
2025	9,749		11
2026 and thereafter	34,334		—
Total lease payments	$	133,378	$	617
Less: Imputed interest	29,610		107
Present value of lease liabilities	$	103,768	$	510

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

The components of income/(loss) before income taxes consist of the following:


	Year ended December 31,
	2021		2020		2019
Domestic	$	43,759	$	30,893	$	(16,685)
Foreign	102,802		84,436		99,785
	$	146,561	$	115,329	$	83,100

Income tax expense/(benefit) consists of the following:


	Year ended December 31,
	2021		2020		2019
Current provision:
Domestic	$	18,532	$	7,946	$	10,823
Foreign	33,644		14,983		16,694
	$	52,176	$	22,929	$	27,517
Deferred provision/(benefit):
Domestic	$	(15,954)	$	1,343	$	(13,912)
Foreign	(4,372)		1,354		1,567
	$	(20,326)	$	2,697	$	(12,345)
Income tax expense	$	31,850	$	25,626	$	15,172

Income taxes (deferred) recognized in AOCI were as follows:


	Year ended December 31,
	2021		2020		2019
Deferred taxes benefit / (expense) recognized on:
Unrealized gain on cash flow hedges	$	(2,308)	$	(1,663)	$	(1,564)
Reclassification adjustment for cash flow hedges	1,530		(500)		1,173
Retirement benefits (incl. effects of tax rate changes)	194		935		312
Reclassification adjustment for retirement benefits	(204)		(127)		16
Foreign currency translation gain/(loss)	3,016		1,946		(644)
Total income tax benefit / (expense) recognized in AOCI	$	2,228	$	591	$	(707)

The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows:


	Year ended December 31,
	2021		2020		2019
Expected tax expense	$	30,777	$	24,219	$	17,451
Impact of tax holiday	—		(757)		(5,920)
Foreign tax rate differential	1,127		(1,991)		1,660
Deferred tax provision	350		2,888		3,026
Unrecognized tax benefits and interest	161		6		174
State taxes, net of Federal taxes	4,968		3,242		2,137
Non-deductible expenses	3,165		1,467		1,329

Excess tax benefit on stock-based compensation	(3,651)		(2,378)		(2,306)
Research and development credits	(1,727)		(918)		(1,650)
Prior period items	(931)		(182)		(143)
Benefit on settlement of convertible notes	(2,411)		—		—
Others	22		30		(586)
Tax expense	$	31,850	$	25,626	$	15,172

The effective tax rate decreased from 22.2% during the year ended December 31, 2020 to 21.7% during the year ended December 31, 2021. The Company recorded income tax expense of $31,850 and $25,626 for the years ended December 31, 2021 and 2020, respectively. The increase in income tax expense was primarily as a result of higher profit during the year ended December 31, 2021, compared to the year ended December 31, 2020, increase in state taxes and increase in non-deductible expense during the year ended December 31, 2021, partially offset by (i) the recording of higher excess tax benefits related to stock awards of $3,651 pursuant to ASU No. 2016-09 during the year ended December 31, 2021, compared to $2,378 during the year ended December 31, 2020, and (ii) the recording of a one-time deferred tax benefit of $2,411 on settlement of the Notes during the year ended December 31, 2021.

During the year 2018, the Company made an election to change the tax status of most of its controlled foreign corporations (“CFC”) to disregarded entities for U.S. income tax purposes. As a result, the Company no longer has undistributed earnings in connection with these CFCs. The Transition Tax resulted in previously taxed income (“PTI”) which may be subject to withholding taxes and currency gains or losses upon repatriation. The Company periodically evaluates opportunities to repatriate PTI held by its foreign subsidiaries to fund its operations in the United States and other geographies, and as and when it decides to repatriate such PTI, it may have to accrue additional taxes in accordance with local tax laws, rules and regulations in the relevant foreign jurisdictions. The Company has adopted an accounting policy to treat Global Intangible Low-Taxed Income (“GILTI”) as a period cost.

During the year ended December 31, 2021, the Company repatriated to the United States $66,000 (net of $3,494 withholding taxes) from India and $42,500 (net of $7,494 withholding taxes) from the Philippines. As of December 31, 2021, the Company’s deferred tax assets includes $10,988 of withholding taxes associated with these distributions. These distributions do not constitute a change in the Company’s permanent reinvestment assertion. The Company bases its decision to continue to indefinitely reinvest earnings in India and the Philippines on its estimate of the working capital required to support its operations in these geographies and periodically reviews its capital initiatives to support and expand the Company’s global operations, as well as whether there exists an economically viable rate of return on its investments made in India and the Philippines as compared to those made in the United States.

The Company has benefitted from a corporate tax holiday in the Philippines for our operations centers established there over the last several years. The tax holiday expired for few of the Company’s operations centers in the last few years and will expire for other operations centers by year 2022, which may lead to an increase in the Company’s overall tax rate. Following the expiry of the tax exemption, income generated from operations centers in the Philippines will be taxed at the prevailing annual tax rate, which is currently 5.0% on gross income.

The diluted earnings per share effect of the tax holiday is nil, $0.02 and $0.17 for the years ended December 31, 2021, 2020 and 2019, respectively.

The components of the deferred tax balances as of December 31, 2021 and 2020 are as follows:


	As of
	December 31, 2021		December 31, 2020
Deferred tax assets:
Tax credit carryforward	$	16,236	$	—
Depreciation and amortization expense	10,722		9,710
Stock-based compensation	10,760		9,383
Accrued employee costs and other expenses	13,264		12,208

Net operating loss carryforwards	2,057		2,042
Unrealized exchange loss	408		391
Deferred rent	4,454		4,782
Others	642		281
	$	58,543	$	38,797
Valuation allowance	(188)		(188)
Deferred tax assets	$	58,355	$	38,609

Deferred tax liabilities:
Unrealized exchange gain	$	5,840	$	2,668
Intangible assets	28,119		19,720
Unamortized discount on convertible notes	—		2,753
Others	3,957		6,566
Deferred tax liabilities	$	37,916	$	31,707
Net deferred tax assets	$	20,439	$	6,902

Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of assets and liabilities and their respective tax bases and operating loss carry forwards. As of December 31, 2021 and 2020, the Company performed an analysis of the deferred tax asset valuation allowance for its net operating loss carryforwards for its domestic and foreign entities. Based on this analysis, the Company continues to carry a valuation allowance of $188 on the deferred tax assets on certain net operating loss carryforwards, as of December 31, 2021 and 2020.

The Company’s income tax expense also includes the impact of provisions established for uncertain income tax positions determined in accordance with ASC 740. Tax exposures can involve complex issues and may require an extended resolution period. Although the Company believes that it has adequately reserved for its uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters differs from the amounts recorded, such differences will impact the income tax expense in the period in which such determination is made.

The following table summarizes the activity related to the unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019.


	2021		2020		2019
Balance as of January 1	$	907	$	1,047	$	804
Decreases/(increases) related to prior year tax positions	(12)		—		69
Decreases related to prior year tax positions	—		(324)		(156)
Increases related to current year tax positions	173		184		330

Balance as of December 31	$	1,068	$	907	$	1,047

The unrecognized tax benefits as of December 31, 2021 of $1,068, if recognized, would impact the effective tax rate.

As of December 31, 2021 and 2020, the Company has not accrued interest and penalties relating to unrecognized tax benefits.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Section S99
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Share-based Payment Arrangement [Abstract]

Stock Based Compensation

12 Months Ended

Dec. 31, 2021

Stock Based Compensation

On June 15, 2018, at the Company’s 2018 Annual Meeting of Stockholders, the Company's stockholders approved the 2018 Omnibus Incentive Plan, which among other things, reserves 3,175,000 shares of the Company’s common stock for grants of awards under the 2018 Omnibus Incentive Plan. As of December 31, 2021, the Company had 1,777,687 shares available for grant under the 2018 Omnibus Incentive Plan (includes 120,440 shares against vested performance-based restricted stock units for which the underlying common stock was issued subsequent to December 31, 2021).

Under the 2018 Omnibus Incentive Plan, the Compensation Committee (the “Committee”) may grant awards of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards, performance based compensation awards (including cash bonus awards and market condition based awards) or any combination of the foregoing.

The Committee determines which employees are eligible to receive the equity awards, the number of equity awards to be granted, the exercise price, the vesting period and the exercise period. The vesting period for the equity award issued is determined on the date of the grant and is non-transferable during the life of the equity award. The majority of options expire within ten years from the date of grant. Restricted stock units generally vest proportionally over a period of four years from the date of grant, unless specified otherwise.

The Company applies the provisions of ASC 718, Compensation - Stock Compensation, to account for its stock based compensation. Under the provisions of this guidance, the estimated fair value of stock-based awards granted under stock incentive plans is recognized as compensation expense based on straight-line method over the requisite service period, which is generally the vesting period.

The following costs by nature of function related to the Company’s stock-based compensation plan are included in the consolidated statements of income:


	Year ended December 31,
	2021		2020		2019
Cost of revenues	$	7,871	$	6,300	$	5,895
General and administrative expenses	16,396		11,009		10,012
Selling and marketing expenses	14,354		10,926		10,163
Total	$	38,621	$	28,235	$	26,070

Income tax benefit related to share-based compensation, including excess tax benefits	$	9,424	$	8,330	$	7,986

Stock Options

The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model.

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. All stock-based payment awards are amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. The Company accounts for the forfeitures as and when the actual forfeitures occur.

Stock option activity under the Company’s stock-based compensation plans is shown below:


	Number of Options	Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Life (Years)
Outstanding at December 31, 2020	31,265	$	25.43	$	1,866	1.9
Granted	—	—		—		—
Exercised	(28,172)	25.19		2,475		—
Forfeited	—	—		—		—
Outstanding at December 31, 2021	3,093	$	27.62	$	362	2.0
Vested and exercisable at December 31, 2021	3,093	$	27.62	$	362	2.0

The unrecognized compensation cost for unvested options as of December 31, 2021 was $nil. The Company did not grant any options during the years ended December 31, 2021, 2020 and 2019. The aggregate intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $2,475, $3,488 and $3,187, respectively.

The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable at December 31, 2021:


	Options Outstanding, Vested and Exercisable
Range of Exercise Prices	Shares	Weighted-Average Exercise Price

$25.01 to $28.00	3,093	$	27.62


	Year ended December 31,
	2021		2020		2019
Cash received from options exercised during the year	$	710	$	1,501	$	986

Restricted Stock Units

The Committee is authorized to award restricted stock units to participants. The Committee establishes the terms, conditions and restrictions applicable to each award of restricted stock units, including the time or times at which restricted stock units will be granted or vested and the number of units to be covered by each award. The terms and conditions of each restricted stock award will be reflected in a restricted stock unit agreement.

Any cash or in-kind dividends paid with respect to unvested shares of restricted stock units are withheld by the Company and paid to the holder of such shares of restricted stock, without interest, only if and when such shares of restricted stock units vest. Any unvested shares of restricted stock units are immediately forfeited without consideration upon the termination of holder’s employment with the Company or its affiliates. Accordingly, the Company’s unvested restricted stock units do not include non-forfeitable rights to dividends or dividend equivalents and are therefore not considered as participating securities for purposes of earnings per share calculations pursuant to the two-class method.

Restricted stock unit activity under the Company’s stock-based compensation plans is shown below:


	Restricted Stock Units
	Number	Weighted- Average Fair Value
Outstanding at December 31, 2020**	903,666	$	67.84
Granted	550,690	91.23
Vested*	(372,519)	64.01
Forfeited	(99,650)	75.68
Outstanding at December 31, 2021**	982,187	$	81.61

* Includes 18,904 and 14,368 restricted stock units vested during the years ended December 31, 2021 and 2020, respectively, for which the underlying common stock is yet to be issued.

** As of December 31, 2021 and 2020, restricted stock units vested for which the underlying common stock is yet to be issued are 162,481 and 181,638, respectively.

The fair value of restricted stock units is generally the market price of the Company’s shares on the date of grant. As of December 31, 2021, unrecognized compensation cost of $57,897 is expected to be expensed over a weighted average period of 2.5 years.

The weighted-average fair value of restricted stock units granted was as follows:


	Year ended December 31,
	2021		2020		2019
Weighted-average fair value	$	91.23	$	76.99	$	64.29

The total grant date fair value of restricted stock units vested was as follows:


	Year ended December 31,
	2021		2020		2019
Total grant date fair value	$	23,845	$	20,072	$	22,084

Performance Based Stock Awards

Under the 2018 Plan, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. Generally the grants provide that 50% of the PRSUs cliff vest at the end of a three-year period based on an aggregated revenue target for a three year period (“PUs”). The remaining 50% is based on a market condition that is contingent on the Company's meeting the total shareholder return relative to a group of peer companies specified under the

program measured over a three-year performance period. During the year ended December 31, 2021, the Company granted PRSUs that cliff vest at the end of a three year period based only on a market condition stated above. The award recipient may earn up to two hundred percent (200%) of the PRSUs granted based on the actual achievement of targets. However, the features of the equity incentive compensation program are subject to change by the Compensation Committee of our Board of Directors.

The fair value of each PU is determined based on the market price of one common share on a day prior to the date of grant, and the associated stock compensation expense is calculated on the basis that performance targets at 100% are probable of being achieved. The stock compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued are adjusted upward or downward based upon the probability of achievement of the performance targets. The final number of shares issued and the related compensation cost recognized as an expense is based on a comparison of the final performance metrics to the specified targets.

The grant date fair value for the MUs is determined using a Monte Carlo simulation model and the related stock compensation expense is expensed on a straight-line basis over the vesting period. The stock compensation expense related to the MUs is recognized once the requisite performance period is fulfilled regardless of the extent of the market condition achieved.

The Monte Carlo simulation model simulates a range of possible future stock prices and estimates the probabilities of the potential payouts. This model also incorporates the following ranges of assumptions:

•The historical volatilities are used over the most recent three-year period for the components of the peer group.

•The risk-free interest rate is based on the U.S. Treasury rate assumption commensurate with the three-year performance period.

•Since the plan stipulates that the awards are based upon the TSR of the Company and the components of the peer group, it is assumed that the dividends get reinvested in the issuing entity on a continuous basis.

•The correlation coefficients are used to model the way in which each entity tends to move in relation to each other are based upon the price data used to calculate the historical volatilities.

The fair value of each MU granted to employees is estimated on the date of grant using the following weighted average assumptions:


	Year ended December 31,
	2021		2020		2019
Dividend yield	—		—		—
Expected life (years)	2.9		2.9		2.9
Risk free interest rate for expected life	0.53	%	3.85	%	2.46	%
Volatility for expected life	65.24	%	34.30	%	20.52	%

Performance restricted stock unit activity under the Company’s stock plans is shown below:


	Revenue Based PRSUs			Market Condition Based PRSUs
	Number	Weighted Average Fair Value		Number	Weighted Average Fair Value
Outstanding at December 31, 2020	105,891	$	72.33	105,869	$	97.84
Granted	—	—		121,180	119.80
Adjustment upon final determination of level of performance goal achievement*	(15,134)	64.33		45,189	92.13
Vested	(30,062)	64.33		(90,378)	92.13
Forfeited	(1,831)	78.34		(9,818)	116.50
Outstanding at December 31, 2021	58,864	$	78.29	172,042	$	113.74

* Represents adjustment of shares vested in respect of PUs and MUs granted in February 2019 upon achievement of the performance targets for such awards for which the underlying common stock was issued subsequent to December 31, 2021.

As of December 31, 2021, unrecognized compensation cost of $12,964 is expected to be expensed over a weighted average period of 1.7 years.

The impact of COVID-19 on the economic environment is uncertain and has caused variability in the estimation of number of performance based restricted stock units that will eventually vest and the related compensation cost to be recognized in the consolidated statements of income.

Impairment and Restructuring Charges	12 Months Ended
Impairment and Restructuring Charges	Dec. 31, 2021
Restructuring and Related Activities [Abstract]
Impairment and Restructuring Charges	Impairment and Restructuring ChargesIn March 2020, the Company completed the wind down of the operations of the Health Integrated business, which was reported within the former Healthcare reportable segment. The Healthcare reportable segment was based on segment reporting structure that existed prior to the Company's transition to new segment reporting structure effective January 1, 2020, which resulted in certain changes to its reportable segments. During the year ended December 31, 2019, in connection with the wind down process, the Company recorded pre-tax costs in the consolidated statements of income under “Impairment and restructuring charges,” and paid for the wind down during the years ended December 31, 2020 and 2019.

Related Party Disclosures

12 Months Ended

Dec. 31, 2021

Related Party Disclosures

On October 1, 2018, the Company entered into the Investment Agreement with the Purchaser relating to the issuance to the Purchaser of $150,000 aggregate principal amount of the Notes. In connection with the investment, Vikram S. Pandit, Chairman and CEO of The Orogen Group LLC (an affiliate of the Purchaser), was appointed to Company’s Board of Directors. The Company settled the Notes on August 27, 2021. Refer to Note 17 - Borrowings to the consolidated financial statements for further details.

The principal amount outstanding for the Notes was $150,000 as of December 31, 2020, and interest accrued of $1,313 as of December 31, 2020, related to the Investment Agreement.

The following transactions with the Purchaser were recognized by the Company in connection with the Notes:


	Year ended December 31
	2021		2020		2019
Repayment of Notes in cash	$	200,000	$	—	$	—
Issuance of shares of the Company's common stock	$	36,742	$	—	$	—
Interest expense on the Notes	$	3,442	$	5,250	$	5,206

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Capital Commitments At December 31, 2021 and 2020, the Company had committed to spend approximately $8,100 and $6,100 under agreements to purchase property and equipment. This amount is net of capital advances paid which are recognized in consolidated balance sheets as “Capital work in progress” under “Property and equipment, net.” Other Commitments Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units or under the STPI or SEZ 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 with the Philippine Economic Zone Authority. The registration provides the Company with certain fiscal incentives on the import of capital goods and local purchase of services and materials and requires ExlService Philippines, Inc. to meet certain performance and investment criteria. The Company believes that these centers have in the past satisfied and will continue to satisfy the required criteria. Contingencies Transfer pricing regulations generally require that any controlled intercompany transactions involving related entities be at an arm’s-length price. Accordingly, the Company determines the appropriate transfer prices for transactions among its related entities on the basis of a detailed functional and economic analysis involving benchmarking against transactions among unrelated entities. Tax authorities have jurisdiction to review transfer pricing results, and in the event that they determine that the transfer price applied was not appropriate, the Company may incur additional tax, interest and penalties. The Company is currently involved in transfer pricing disputes with Indian tax authorities regarding transactions with some of its related entities. In addition, the Company and a U.S. subsidiary are engaged in tax litigation with Indian tax authorities regarding a permanent establishment matter. The aggregate amount demanded by Indian tax authorities (net of advance payments) from the Company related to its transfer pricing and other corporate tax issues for tax years 2003 to 2019 and its permanent establishment issues for tax years 2003 to 2006 as of December 31, 2021 and 2020 is $34,276 and $16,748, respectively. The Company has made payments and/or provided bank guarantees against these demands in the amounts of $7,954 and $8,120, respectively. Amounts paid as deposits in respect of such assessments aggregating to $6,172 and $6,307 as of December 31, 2021 and 2020, respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $1,782 and $1,813 as of December 31, 2021 and 2020, respectively, are included in “Restricted cash” in the non-current assets section of the Company’s consolidated balance sheets. Based on the facts underlying the Company’s position and its experience with these types of assessments, the Company believes that its position will more likely than not be sustained upon final examination by the tax authorities based on its technical merits as of the reporting date and accordingly has not accrued any amount with respect to these matters in its consolidated financial statements. It is possible that the Company might receive similar orders or assessments from tax authorities for subsequent years. Accordingly, even if these disputes are resolved, the Indian tax authorities may still serve additional orders or assessments. India’s Value Added Tax ("VAT") regime ended in June 2017 and was replaced by the current Goods and Service Tax regime. Pursuant to reviewing the Company’s annual VAT filings, the Indian tax authorities raised aggregate VAT tax demands for tax years 2015 and 2017 in the amount $6,387. Beginning in the first quarter of 2020, the GST authorities began to reject the Company’s GST refunds in the amount of $3,322, and additional refunds may be denied. 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 reserve has been provided as of December 31, 2021. In February 2019, there was a judicial pronouncement in India with respect to defined social security contribution benefits payments interpreting certain statutory defined contribution obligations of employees and employers. Currently some of the Company's subsidiaries in India are undergoing assessment with the statutory authorities. As of the reporting date, it is unclear whether the interpretation set out in the pronouncement has retrospective application. If applied retrospectively, the interpretation may result in a significant increase in contributions payable by the Company for past periods for certain of its India-based employees. There are numerous interpretative challenges concerning the retrospective application of the judgment. Due to such challenges and a lack of interpretive guidance, and based on legal advice, the Company believes it is currently impracticable to reliably estimate the timing and amount of any payments the Company may be required to make. The Company will continue to monitor and evaluate its position based on future events and developments in this matter for the implications on the financial statements, if any. In 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. The Indian Social Security Code has implications on defined social security contribution plans, provision of certain benefits or facilities to employees at employer’s costs and post-retirement benefits. Most specifically, it broadens the definition of an employee and wages and liberalizes the definition of “continuous period” for the purpose of determining employee benefits, amongst others. 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, on individual basis, 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 amounts claimed in such cases are not meaningful indicators of the potential liabilities of the Company, that these matters are without merit, and that the Company intends to vigorously defend each of them. 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.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Preparation

Basis of Preparation and Principles of ConsolidationThe consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”).

Principles of Consolidation

The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings Inc. and all of its subsidiaries and includes the Company's share in the results of its associates.

Use of Estimates

Use of EstimatesThe preparation of the 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 consolidated financial statements and the 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 consolidated financial statements include, but are not limited to, estimates of the fair value of the identifiable intangible assets and contingent

Foreign Currency Translation

Foreign Currency TranslationThe functional currency of each entity in the Company is its respective local country currency which is also the currency of the primary economic environment in which it operates except for the entities in Mauritius which use the U.S. dollar as its functional currency. Transactions in foreign currencies are initially recorded into functional currency at the rates of exchange prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured into functional currency at the rates of exchange prevailing at the balance sheet date. Non-monetary assets and liabilities are remeasured to the functional currency at exchange rates that prevailed on the date of inception of the transaction. All foreign exchange gains and losses arising on re-measurement are recorded in the Company's consolidated statements of income.The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Share capital and other equity items are translated at exchange rates that prevailed on the date of inception of the transaction. Resulting translation adjustments are included in “Accumulated other comprehensive income/(loss)” in the consolidated balance sheets.

Revenue Recognition

Nature of Services

Type of Contracts

or penalties have been incurred. Revenues are recognized net of any penalties or service credits that are due to a client.

Modification to Contracts

Arrangements with Multiple Performance Obligations

Variable Consideration

Variability in the transaction price arises primarily due to service level agreements and volume discounts.

The Company considers its experience with similar transactions and expectations regarding the contract in estimating the amount of variable consideration that should be recognized during a period.

Allocation of Transaction Price to Performance Obligations

Unbilled Receivables

Deferred Revenue and Contract Fulfillment Costs

Contract Acquisition Costs

Upfront Payments Made to Customers

Out-of-Pocket Expenses

Reimbursements of out-of-pocket expenses received from clients are included as part of revenues.

Payment terms

Remaining Performance Obligations

i.Contracts with an original expected length of one year or less as determined under ASC 606,

ii.Contracts for which Company recognize revenue based on the right to invoice for service performed.

Cash and Cash Equivalents and Restricted Cash

For purposes of the statements of cash flows, the Company includes in its cash and cash-equivalent balances those amounts that have been classified as restricted cash and restricted cash equivalents.

Investments

Accounts Receivable and Allowance for Expected Credit Losses

Accounts Receivable and Allowance for Expected Credit Losses Accounts receivable are recorded net of allowances 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

Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts.

Property and equipment

Depreciation is computed using the straight-line method over the estimated useful lives of the assets.

Software Development Costs

Business Combinations, Goodwill and Other Intangible Assets

Business Combinations, Goodwill and Other Intangible AssetsASC Topic 805, Business Combinations, requires that the acquisition method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Contingent consideration is recognized at its fair value on the acquisition date. A

The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method:


			Useful Lives (in years)
Customer relationships			7-15
Developed technology			3-10
Non-compete agreements			4
Trade names and trademarks			2-10

Investment in Equity Affiliate

Investment in Equity AffiliateInvestments in equity affiliate 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 consolidated statements of income. The Company periodically reviews the carrying value of its investment to determine if there has been any other than temporary decline in carrying value. The investment balance for an investee is increased or decreased for cash contribution and distributions to or from, respectively.

Impairment of Long-lived Assets

Impairment of Long-lived AssetsLong-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. 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, and the asset’s residual value, if any. In turn, measurement of an impairment loss requires a determination of fair value, which is based on the best information available. The Company derives the required undiscounted cash flow estimates from its historical experience and its internal business plans. To determine fair value, the Company follows the discounted cash flow approach and uses its internal cash flow estimates discounted at an appropriate discount rate and independent appraisals, as appropriate. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value.

Derivative Financial Instruments

currency. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain/(loss).

Borrowings

Employee Benefits

Stock-Based Compensation

Income Taxes

Financial Instruments and Concentration of Credit Risk

Leases

The Company reviews ROU assets for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable.

Government Grants

Earnings per share

Commitments and contingencies

Commitments and contingenciesLiabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Legal costs incurred in connection with such liabilities are expensed as incurred.

Recent Accounting Pronouncements and Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements

(x) Recently Adopted Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives

The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method:


			Useful Lives (in years)
Customer relationships			7-15
Developed technology			3-10
Non-compete agreements			4
Trade names and trademarks			2-10

Segment and Geographical Information (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Revenues and Cost of Revenues for Company's Reportable Segments

Revenues and cost of revenues for the years ended December 31, 2021, 2020 and 2019, respectively, for each of the reportable segments, are as follows:


	Year ended December 31, 2021
	Insurance		Healthcare		Emerging Business		Analytics		Total

Revenues, net	$	381,999	$	112,386	$	167,236	$	460,672	$	1,122,293
Cost of revenues(1)	239,529		69,760		91,737		289,908		690,934
Gross profit(1)	$	142,470	$	42,626	$	75,499	$	170,764	$	431,359
Operating expenses									275,478
Loss on settlement of convertible notes, foreign exchange gain, interest expense and other income, net									(9,320)
Income tax expense									31,850
Gain from equity-method investment									47
Net income									$	114,758

(1) Exclusive of depreciation and amortization expense.


	Year ended December 31, 2020
	Insurance		Healthcare		Emerging Business		Analytics		Total
Revenues, net	$	341,770	$	101,315	$	152,670	$	362,679	$	958,434
Cost of revenues(1)	231,884		73,143		89,459		229,450		623,936
Gross profit(1)	$	109,886	$	28,172	$	63,211	$	133,229	$	334,498
Operating expenses									224,476
Foreign exchange gain, interest expense and other income, net									5,307
Income tax expense									25,626
Loss from equity-method investment									227
Net income									$	89,476

(1) Exclusive of depreciation and amortization expense.


	Year ended December 31, 2019
	Insurance		Healthcare		Emerging Business		Analytics		Total
Revenues, net	$	346,434	$	97,465	$	190,118	$	357,329	$	991,346
Cost of revenues(1)	238,580		77,048		108,617		231,245		655,490
Gross profit(1)	$	107,854	$	20,417	$	81,501	$	126,084	$	335,856
Operating expenses									259,403
Foreign exchange gain, interest expense and other income, net									6,647
Income tax expense									15,172
Loss from equity-method investment									269
Net income									$	67,659

(1) Exclusive of depreciation and amortization expense.

Revenues, net by service type, were as follows:


	Year ended December 31,
	2021		2020		2019
Digital operations and solutions(1)	$	661,621	$	595,755	$	634,017
Analytics services	460,672		362,679		357,329
Revenues, net	$	1,122,293	$	958,434	$	991,346

(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.


	Year ended December 31,
	2021		2020		2019
Revenues, net
United States	$	964,059	$	814,672	$	817,878
Non-United States
United Kingdom	105,734		88,659		113,036
Rest of World	52,500		55,103		60,432
Total Non-United States	158,234		143,762		173,468
Revenues, net	$	1,122,293	$	958,434	$	991,346

Property and Equipment, Net 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
	December 31, 2021		December 31, 2020
Long-lived assets
India	$	79,604	$	97,261
United States	50,095		46,659
Philippines	22,011		29,434
Rest of World	10,990		11,439
Long-lived assets	$	162,700	$	184,793

Revenues, net (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Contract with Customer, Receivables, Assets and Liabilities Recognized

The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers:


	As of
	December 31, 2021		December 31, 2020
Accounts receivable, net	$	194,232	$	147,635
Contract assets	$	2,524	$	4,437
Contract liabilities
Deferred revenue (consideration received in advance)	$	18,247	$	30,450
Consideration received for process transition activities	$	2,203	$	2,774

Revenue recognized during the years ended December 31, 2021 and 2020, which was included in the contract liabilities balance at the beginning of the respective periods:


	Year ended December 31,
	2021		2020
Deferred revenue (consideration received in advance)	$	30,089	$	10,949
Consideration received for process transition activities	$	1,886	$	1,424

Contract Acquisition and Fulfillment Costs

The following table provides details of the Company’s contract acquisition and fulfillment costs:


	Contract Acquisition Costs				Contract Fulfillment Costs
	Year ended December 31,				Year ended December 31,
	2021		2020		2021		2020
Opening Balance	$	1,027	$	1,307	$	5,631	$	7,255
Additions	277		310		3,742		779
Amortization	(793)		(590)		(3,578)		(2,403)
Closing Balance	$	511	$	1,027	$	5,795	$	5,631

Movement in Allowance for Expected Credit Loss


	As of
	December 31, 2021		December 31, 2020
Accounts receivable, including unbilled receivables	$	194,805	$	148,824
Less: Allowance for expected credit loss	(573)		(1,189)
Accounts receivable, net	$	194,232	$	147,635

The movement in “Allowance for expected credit losses” on customer balances for the years ended December 31, 2021 and 2020 was as follows:


	Year ended December 31,
	2021		2020
Balance at the beginning of the year	$	1,189	$	1,163
Additions / (reductions) during the period	(496)		300
Reductions due to write-off of Accounts Receivables	(129)		(269)
Translation adjustment	9		(5)
Balance at the end of the year	$	573	$	1,189

Other Income, net (Tables)

12 Months Ended

Dec. 31, 2021

Other Income and Expenses [Abstract]

Summary of Other Income, net

Other income, net consists of the following:


	Year ended December 31,
	2021		2020		2019
Gain on sale and mark-to-market of mutual funds and money market funds	$	4,891	$	9,615	$	13,180
Interest and dividend income	2,726		2,501		2,184
Others, net	(844)		(51)		1,143
Other income, net	$	6,773	$	12,065	$	16,507

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2021

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:


	Year ended December 31,
	2021		2020		2019
Numerators:
Net income	$	114,758	$	89,476	$	67,659
Denominators:
Basic weighted average common shares outstanding	33,549,275		34,273,388		34,350,150
Dilutive effect of share based awards	408,693		254,717		382,533
Dilutive effect of conversion premium on the Notes	286,510		27,059		—
Diluted weighted average common shares outstanding	34,244,478		34,555,164		34,732,683
Earnings per share attributable to ExlService Holdings Inc. stockholders:
Basic	$	3.42	$	2.61	$	1.97
Diluted	$	3.35	$	2.59	$	1.95
Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share	10,705		289,061		106,375

Cash, Cash Equivalents and Restricted Cash (Tables)

12 Months Ended

Dec. 31, 2021

Cash and Cash Equivalents [Abstract]

Schedule of Cash and Cash Equivalents

For the purpose of statements of cash flows, cash, cash equivalents and restricted cash comprise of the following:


	As of
	December 31, 2021		December 31, 2020		December 31, 2019
Cash and cash equivalents	$	135,337	$	218,530	$	119,165
Restricted cash (current)	6,174		4,690		5,453
Restricted cash (non-current)	2,299		2,299		2,426
Cash, cash equivalents and restricted cash	$	143,810	$	225,519	$	127,044

Restrictions on Cash and Cash Equivalents

For the purpose of statements of cash flows, cash, cash equivalents and restricted cash comprise of the following:


	As of
	December 31, 2021		December 31, 2020		December 31, 2019
Cash and cash equivalents	$	135,337	$	218,530	$	119,165
Restricted cash (current)	6,174		4,690		5,453
Restricted cash (non-current)	2,299		2,299		2,426
Cash, cash equivalents and restricted cash	$	143,810	$	225,519	$	127,044

Property and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, net consists of the following:


		As of
	Estimated useful lives (Years)	December 31, 2021		December 31, 2020
Owned Assets:
Network equipment and computers	3-5	$	116,023	$	107,016
Software	3-5	101,884		99,708
Leasehold improvements	3-8	46,401		48,052
Office furniture and equipment	3-8	22,302		22,210
Motor vehicles	2-5	693		599
Buildings	30	1,070		1,089
Land	—	700		712
Capital work in progress	—	10,288		4,647
		299,361		284,033
Less: Accumulated depreciation and amortization		(213,699)		(191,629)
		$	85,662	$	92,404
Right-of-use assets under finance leases:*
Network equipment and computers		91		93
Leasehold improvements		1,229		817
Office furniture and equipment		787		255
Motor vehicles		578		688
		2,685		1,853
Less: Accumulated depreciation and amortization		(2,339)		(1,382)
		$	346	$	471
Property and equipment, net		$	86,008	$	92,875

*Depreciation on assets held under finance leases are computed using the straight-line method over the shorter of the asset's estimated useful lives or the lease term.

The depreciation and amortization expense, excluding amortization of acquisition-related intangibles recognized in the consolidated statements of income was as follows:


	Year ended December 31,
	2021		2020		2019
Depreciation and amortization expense	$	36,354	$	36,050	$	30,423

The effect of foreign exchange gain upon settlement of cash flow hedges recorded under depreciation and amortization, was as follows:


	Year ended December 31,
	2021		2020		2019
Effect of foreign exchange gains	$	524	$	51	$	212

Internally developed software costs, included under Software, was as follows:


	As of
	December 31, 2021		December 31, 2020
Cost	$	19,289	$	18,371
Less : Accumulated amortization	(10,226)		(5,998)
Internally developed software, net	$	9,063	$	12,373

The amortization expense on internally developed software recognized in the consolidated statements of income was as follows:


	Year ended December 31,
	2021		2020		2019
Amortization expense	$	4,253	$	4,894	$	2,745

Business Combinations, Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Assets and Liabilities Acquired

The Company’s preliminary purchase price allocation to net tangible and intangible assets of Clairvoyant as of December 16, 2021 is as follows:


Assets:
Cash and cash equivalents	$	5,606
Accounts receivable, net	9,042
Other current assets	352
Property and equipment, net	399
Intangible assets, net
Customer relationships	31,600
Developed technology	2,070
Trade names and trademarks	300
Non-compete agreements	300
Other assets	376
Total assets	$	50,045

Liabilities:
Accounts payable	(1,241)
Accrued expenses and other current liabilities	(4,833)

Deferred tax liabilities	(9,383)
Other non-current liabilities	(238)
Total liabilities	(15,695)

Net assets acquired	34,350
Goodwill	55,225
Total purchase consideration*	$	89,575

* Includes contingent consideration of $9,000 recognized at fair value.

Schedule of Goodwill

The following table sets forth details of changes in goodwill by reportable segment of the Company:


	Insurance		Healthcare		Emerging Business		Analytics		TT&L		F&A		All Other		Total
Balance at January 1, 2020	$	38,276	$	19,276	$	—	$	227,289	$	12,457	$	46,905	$	5,326	$	349,529
Goodwill reallocation(1)	12,192		2,693		49,803		—		(12,457)		(46,905)		(5,326)		—
Currency translation adjustments	31		(16)		(455)		(1)		—		—		—		(441)
Balance at December 31, 2020	$	50,499	$	21,953	$	49,348	$	227,288	$	—	$	—	$	—	$	349,088
Acquisition	—		—		—		55,225		—		—		—		55,225
Currency translation adjustments	(71)		(11)		(328)		(1)		—		—		—		(411)
Balance at December 31, 2021	$	50,428	$	21,942	$	49,020	$	282,512	$	—	$	—	$	—	$	403,902

Schedule of Indefinite Lived Intangible Assets

Information regarding the Company’s intangible assets is set forth below:


	As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	103,016	$	(33,018)	$	69,998
Developed technology	25,040		(15,850)		9,190
Trade names and trademarks	1,700		(1,006)		694
Non-compete agreements	300		—		300
	$	130,056	$	(49,874)	$	80,182
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—	$	900
Total intangible assets	$	130,956	$	(49,874)	$	81,082


	As of December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	73,357	$	(27,464)	$	45,893
Developed technology	23,510		(11,858)		11,652
Trade names and trademarks	5,100		(3,951)		1,149
	$	101,967	$	(43,273)	$	58,694
Indefinite-lived intangible assets:
Trade names and trademarks	$	900	$	—	$	900
Total intangible assets	$	102,867	$	(43,273)	$	59,594

Schedule of Amortization of Intangible Assets

The amortization expense recognized in the consolidated statements of income was as follows:


	Year ended December 31,
	2021		2020		2019
Amortization expense	$	12,778	$	14,412	$	21,558

Schedule of Finite Lived Intangible Assets Useful Lives

The remaining weighted average life of intangible assets is as follows:


			(in years)
Customer relationships			6.5
Developed technologies			2.1
Trade names and trademarks (Finite lived)			2.4
Non-compete agreements			4.0

Schedule of Estimated Future Amortization of Intangible Assets


Estimated future amortization expense related to finite-lived intangible assets as of December 31, 2021 was as follows:
2022	$	17,004
2023	14,468
2024	11,966
2025	10,539
2026	10,195
2027 and thereafter	16,010
Total	$	80,182

Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Current Assets

Other current assets consist of the following:


	As of
	December 31, 2021		December 31, 2020
Receivables from statutory authorities	$	18,023	$	15,658
Derivative instruments	8,682		9,755
Advances to suppliers	1,464		3,906
Deferred contract fulfillment costs	1,483		2,888
Contract assets	1,319		1,814
Interest accrued on term deposits	892		169
Others	2,146		2,919
Other current assets	$	34,009	$	37,109

Other Assets (Tables)

12 Months Ended

Dec. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets

Other assets consist of the following:


	As of
	December 31, 2021		December 31, 2020
Lease deposits	$	9,649	$	9,788
Deposits with statutory authorities	6,417		6,341
Derivative instruments	6,307		6,933
Deferred contract fulfillment costs	4,312		2,743
Contract assets	1,205		2,623
Receivable from Statutory authorities	222		754
Term deposits	186		216
Others	2,071		2,701
Other assets	$	30,369	$	32,099

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Accounts Payable and Accrued Liabilities, Current [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:


	As of
	December 31, 2021		December 31, 2020
Accrued expenses	$	44,405	$	39,951
Payable to statutory authorities	13,902		10,594
Accrued capital expenditures	7,404		7,857
Client liabilities	6,097		4,740
Derivative instruments	1,852		435
Interest payable	252		1,399
Finance lease liabilities	141		229
Other current liabilities	1,071		1,205
Accrued expenses and other current liabilities	$	75,124	$	66,410

Other Non-Current liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Liabilities, Noncurrent [Abstract]

Summary of Other Non-Current Liabilities

Other non-current liabilities consist of the following:


	As of
	December 31, 2021		December 31, 2020
Retirement benefits	$	9,604	$	8,940
Contingent consideration	9,000		—
Derivative instruments	1,785		29
Deferred transition revenue	995		924
Unrecognized tax benefits	1,068		907
Finance lease liabilities	229		281
Accrued capital expenditures	—		3,486
Others	120		3,568
Other non-current liabilities	$	22,801	$	18,135

Accumulated Other Comprehensive Income/( Loss) (Tables)

12 Months Ended

Dec. 31, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income/( Loss)

The balances as of December 31, 2021 and 2020 are as follows:


	Accumulated Other Comprehensive Income/(Loss)
	Foreign currency translation loss		Unrealized gain on cash flow hedges		Retirement benefits		Total
Balance as of January 1, 2020	$	(87,591)	$	4,098	$	(1,399)	$	(84,892)
Gains / (losses) recognized during the year	(540)		12,665		(2,401)		9,724
Reclassification to net income (1)	—		(801)		394		(407)
Income tax effects (2)	1,946		(2,163)		808		591
Accumulated other comprehensive income/(loss) as of December 31, 2020	$	(86,185)	$	13,799	$	(2,598)	$	(74,984)
Gains / (losses) recognized during the year	(11,134)		4,663		(558)		(7,029)
Losses on net investment hedges	(1,134)		—		—		(1,134)
Reclassification to net income (1)	—		(9,264)		709		(8,555)
Income tax effects (2)	3,016		(778)		(10)		2,228
Accumulated other comprehensive income/(loss) as of December 31, 2021	$	(95,437)	$	8,420	$	(2,457)	$	(89,474)

1.Refer to Note 16 - Derivatives and Hedge Accounting and Note 19 - Employee Benefit Plans to the consolidated financial statements for reclassification to net income.

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value

The following table sets forth the Company’s assets and liabilities that were accounted for at fair value as of December 31, 2021 and 2020.


	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
As of December 31, 2021	(Level 1)		(Level 2)		(Level 3)		Total
Assets
Cash and cash equivalents (money market funds)*	$	5,374	$	—	$	—	$	5,374
Mutual funds**	$	127,551	$	—	$	—	$	127,551
Derivative financial instruments	$	—	$	14,989	$	—	$	14,989
Total	$	132,925	$	14,989	$	—	$	147,914
Liabilities
Derivative financial instruments	$	—	$	3,637	$	—	$	3,637
Contingent consideration	$	—	$	—	$	9,000	$	9,000
Total	$	—	$	3,637	$	9,000	$	12,637

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
As of December 31, 2020	(Level 1)		(Level 2)		(Level 3)		Total
Assets
Cash and cash equivalents (money market funds)*	$	13,463	$	—	$	—	$	13,463
Mutual funds**	$	160,441	$	—	$	—	$	160,441
Derivative financial instruments	$	—	$	16,688	$	—	$	16,688
Total	$	173,904	$	16,688	$	—	$	190,592
Liabilities
Derivative financial instruments	$	—	$	464	$	—	$	464
Total	$	—	$	464	$	—	$	464

* Represents money market funds which are carried at the fair value option under ASC 825 "Financial Instruments".

** Represents those short-term investments which are carried at the fair value option under ASC 825 "Financial Instruments".

Derivatives and Hedge Accounting (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Value of Foreign Currency Exchange Contracts

The following tables set forth the fair value of the foreign currency exchange contracts and their location on the consolidated financial statements:


Derivatives designated as hedging instruments:	As of
Foreign currency exchange contracts	December 31, 2021		December 31, 2020
Other current assets	$	8,669	$	9,740
Other assets	$	6,307	$	6,933
Accrued expenses and other current liabilities	$	1,324	$	176
Other non-current liabilities	$	1,785	$	29

Derivatives not designated as hedging instruments:	As of
Foreign currency exchange contracts	December 31, 2021		December 31, 2020
Other current assets	$	13	$	15
Accrued expenses and other current liabilities	$	528	$	259

Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income/(Loss)


	Year ended December 31,
Forward Exchange Contracts:	2021		2020		2019
Unrealized gain recognized in AOCI
Derivatives in cash flow hedging relationships	$	4,663	$	12,665	$	8,773

Gain recognized in consolidated statements of income
Derivatives not designated as hedging instruments	$	196	$	3,686	$	3,208

Location and amount of gain/(loss) recognized in consolidated statements of income for cash flow hedging relationships and derivatives not designated as hedging instruments:


	Year ended December 31,
	2021				2020				2019
	As per consolidated statements of income		Gain on foreign currency exchange contracts		As per consolidated statements of income		Gain/(loss) on foreign currency exchange contracts		As per consolidated statements of income		Gain on foreign currency exchange contracts
Cash flow hedging relationships
Location in consolidated statements of income where gain/(loss) was reclassed from AOCI

Cost of revenues	$	690,934	$	7,785	$	623,936	$	1,008	$	655,490	$	3,269
General and administrative expenses	$	142,040	$	948	$	113,891	$	(161)	$	126,909	$	424
Selling and marketing expenses	$	84,306	$	53	$	60,123	$	(5)	$	71,842	$	46
Depreciation and amortization expense	$	49,132	$	478	$	50,462	$	(41)	$	51,981	$	212
Total before tax			$	9,264			$	801			$	3,951
Income tax benefit/(expense) relating to above			$	(1,530)			$	500			$	(1,173)
Net of tax			$	7,734			$	1,301			$	2,778

Derivatives not designated as hedging instruments
Location in consolidated statements of income where gain was recognized

Foreign exchange gain, net	$	4,313	$	196	$	4,432	$	3,686	$	3,752	$	3,208
	$	4,313	$	196	$	4,432	$	3,686	$	3,752	$	3,208

Summary of Effect of Net Investment Hedges on Accumulated Other Comprehensive Income

Effect of net investment hedges on accumulated other comprehensive income/(loss):


	Year ended December 31,
	Amount of loss recognized in AOCI
Net investment hedging relationships	2021		2020		2019
Foreign exchange contracts	$	1,134	$	—	$	—

Borrowings (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Company's Debt Position

The following tables summarizes the Company’s debt position as of December 31, 2021 and 2020.


	As of December 31, 2021				As of December 31, 2020
	Revolving Credit Facility		Total		Revolving Credit Facility		Notes		Total
Current portion of long-term borrowings	$	260,016	$	260,016	$	25,000	$	—	$	25,000

Long-term borrowings	$	—	$	—	$	64,000	$	150,000	$	214,000
Unamortized debt discount	—		—		—		(11,236)		(11,236)
Unamortized debt issuance costs*	—		—		—		(803)		(803)
Long-term borrowings	$	—	$	—	$	64,000	$	137,961	$	201,961
Total borrowings	$	260,016	$	260,016	$	89,000	$	137,961	$	226,961

Schedule of Credit Facilities Carried an Effective Interest Rate

The revolving Credit Facility carried an effective interest rate as shown below.


	Year ended December 31,
	2021		2020		2019
Effective Interest Rate	1.7	%	2.3	%	4.0	%

The Notes carried an effective interest rate as shown below:


	Year ended December 31,
	2021		2020		2019
Effective Interest Rate	3.6	%	3.6	%	3.6	%

Schedule of Interest Expense Debt Recognized

During the years ended December 31, 2021, 2020 and 2019, the Company recognized interest expense and amortization of debt discount on the Notes as below:


	Year ended December 31,
		2021		2020		2019
Interest expense on the Notes		$	3,442	$	5,250	$	5,206
Amortization of debt discount on the Notes		$	1,795	$	2,616	$	2,472

Schedule of Principal Maturities of Borrowings

Expected payments for all of the Company's borrowings as of December 31, 2021 were as follows:


	Revolving Credit Facility		Interest payments
2022	$	260,016	$	2,510

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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Schedule of Purchase of Common Stock from Employees Withholding Tax Payments Related to Vesting of Restricted Stock

Capital Structure (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]


	Shares repurchased	Total consideration		Weighted average purchase price per share (1)
Twelve months ended December 31, 2021	31,309	$	2,752	$	87.90
Twelve months ended December 31, 2020	28,052	$	2,131	$	75.96
Twelve months ended December 31, 2019	23,859	$	1,490	$	62.47

Summary of Company's Purchased Shares of its Common Stock, Including Commissions

The Company purchased shares of its common stock, including commissions, under repurchase programs, as below:


	Shares repurchased	Total consideration		Weighted average purchase price per share (1)
Twelve months ended December 31, 2021	1,087,325	$	115,605	$	106.32
Twelve months ended December 31, 2020	1,085,153	$	77,818	$	71.71
Twelve months ended December 31, 2019	643,486	$	39,874	$	61.96

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Summary of Change in Projected Benefit Obligation

Change in projected benefit obligation, was as follows:


	2021		2020
Projected benefit obligation as of January 1	$	20,466	$	15,311
Service cost	3,512		2,706
Interest cost	929		964
Benefits paid	(1,844)		(878)
Acquisition adjustments	209		—
Actuarial loss*	539		2,425
Effect of exchange rate changes	(540)		(62)
Projected benefit obligation as of December 31	$	23,271	$	20,466
Unfunded amount-non-current	$	9,604	$	8,940
Unfunded amount-current	62		14
Total accrued liability	$	9,666	$	8,954
Accumulated benefit obligation	$	14,794	$	12,490

Accumulated benefit obligation in excess of plan assets	$	1,189	$	978

Components of Net Periodic Benefit Costs

Components of net periodic benefit costs, were as follows:


	Year ended December 31,
	2021		2020		2019
Service cost	$	3,512	$	2,706	$	1,953
Interest cost	929		964		875
Expected return on plan assets	(796)		(636)		(568)
Amortization of actuarial (gain)/loss, gross of tax	709		394		(159)
Net gratuity cost	$	4,354	$	3,428	$	2,101

Income tax effects on amortization of actuarial (gain)/loss	(204)		(127)		16
Amortization of actuarial (gain)/loss, net of tax	$	505	$	267	$	(143)

Summary of Components of Actuarial Gain/(Loss)

The components of actuarial gain/(loss) on retirement benefits included in accumulated other comprehensive income/(loss), excluding tax effects, were as follows:


	As of December 31,
	2021		2020		2019
Net actuarial loss	$	(3,624)	$	(3,772)	$	(1,762)
Net prior service cost	(12)		(15)		(18)
Accumulated other comprehensive income/(loss), excluding tax effects	$	(3,636)	$	(3,787)	$	(1,780)

Summary of Weighted Average Actuarial Assumptions

The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost were:


	December 31,
	2021		2020		2019
Discount rate	5.6	%	4.6	%	6.5	%
Rate of increase in compensation levels	7.6	%	7.1	%	6.0	%
Expected long-term rate of return on plan assets per annum	6.8	%	7.0	%	7.5	%

Summary of Expected Benefit Payments


Expected benefit payments during the year ending December 31,
2022	$	3,165
2023	$	2,979
2024	$	2,738
2025	$	2,464
2026	$	2,162
2027 to 2031	$	8,006

Change in Plan Assets


Change in Plan Assets
Plan assets at January 1, 2020	$	8,784
Actual return	661
Employer contribution	3,099
Benefits paid*	(869)
Effect of exchange rate changes	(163)
Plan assets at December 31, 2020	$	11,512
Actual return	777
Employer contribution	3,361
Benefits paid*	(1,835)
Effect of exchange rate changes	(210)
Plan assets at December 31, 2021	$	13,605

* Benefits payments were substantially made from the plan assets during the year.

Schedule of Company's Contribution Plan

The Company's accrual for contributions to the 401(k) Plans were as follows:


	Year ended December 31,
	2021		2020		2019
Contribution to the 401(k) Plans	$	3,693	$	3,577	$	3,617


	Year ended December 31,
	2021		2020		2019
Contribution to the defined benefit plans	$	16,340	$	11,332	$	10,614

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of Supplemental Balance Sheet Information

Supplemental balance sheet information


	As of
	December 31, 2021		December 31, 2020
Operating Lease
Operating lease right-of-use assets	$	76,692	$	91,918

Operating lease liabilities – Current	$	18,487	$	18,894
Operating lease liabilities – Non-current	68,506		84,874
Total operating lease liabilities	$	86,993	$	103,768

Finance Lease
Property and equipment, gross	$	2,685	$	1,853
Accumulated depreciation	(2,339)		(1,382)
Property and equipment, net	$	346	$	471

Finance lease liabilities – Current	$	141	$	229
Finance lease liabilities – Non-current	229		281
Total finance lease liabilities	$	370	$	510

Schedule of Components of Lease Cost

The components of lease cost, which are included in the Company's consolidated statements of income, are as follows:


Lease cost	Year ended December 31, 2021		Year ended December 31, 2020
Finance lease:
Amortization of right-of-use assets	$	188	$	235
Interest on lease liabilities	63		81
	$	251	$	316
Operating lease(a)	26,326		27,146
Variable lease costs	7,621		8,496
	$	33,947	$	35,642

Total lease cost	$	34,198	$	35,958

(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:


	Year ended December 31, 2021		Year ended December 31, 2020
Cash payments for amounts included in the measurement of lease liabilities :
Operating cash outflows for operating leases	$	25,674	$	26,589
Operating cash outflows for finance leases	$	63	$	81
Financing cash outflows for finance leases	$	201	$	249
Right-of-use assets obtained in exchange for new operating lease liabilities	$	4,547	$	18,765
Right-of-use assets obtained in exchange for new finance lease liabilities	$	71	$	45
Weighted-average remaining lease term (in years)
Finance lease	2.1 years		1.8 years
Operating lease	5.8 years		6.3 years
Weighted-average discount rate
Finance lease	14.5%		10.5%
Operating lease	7.2%		7.4%

Schedule of Maturities of Operating Lease Liabilities

Maturities of lease liabilities as of December 31, 2021 were as follows:


	Operating Leases		Finance Leases
2022	$	24,020	$	185
2023	22,666		147
2024	17,745		72
2025	10,741		34
2026	8,395		17
2027 and thereafter	25,198		—
Total lease payments	$	108,765	$	455
Less: Imputed interest	21,772		85
Present value of lease liabilities	$	86,993	$	370

Maturities of lease liabilities as of December 31, 2020 were as follows:


	Operating Leases		Finance Leases
2021	$	25,829	$	262
2022	24,316		194
2023	22,066		114
2024	17,084		36
2025	9,749		11
2026 and thereafter	34,334		—
Total lease payments	$	133,378	$	617
Less: Imputed interest	29,610		107
Present value of lease liabilities	$	103,768	$	510

Schedule of Maturities of Finance Lease Liabilities

Maturities of lease liabilities as of December 31, 2021 were as follows:


	Operating Leases		Finance Leases
2022	$	24,020	$	185
2023	22,666		147
2024	17,745		72
2025	10,741		34
2026	8,395		17
2027 and thereafter	25,198		—
Total lease payments	$	108,765	$	455
Less: Imputed interest	21,772		85
Present value of lease liabilities	$	86,993	$	370

Maturities of lease liabilities as of December 31, 2020 were as follows:


	Operating Leases		Finance Leases
2021	$	25,829	$	262
2022	24,316		194
2023	22,066		114
2024	17,084		36
2025	9,749		11
2026 and thereafter	34,334		—
Total lease payments	$	133,378	$	617
Less: Imputed interest	29,610		107
Present value of lease liabilities	$	103,768	$	510

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of Components of Income /(Loss) Before Income Taxes

The components of income/(loss) before income taxes consist of the following:


	Year ended December 31,
	2021		2020		2019
Domestic	$	43,759	$	30,893	$	(16,685)
Foreign	102,802		84,436		99,785
	$	146,561	$	115,329	$	83,100

Summary of Income Tax Expense/(Benefit)

Income tax expense/(benefit) consists of the following:


	Year ended December 31,
	2021		2020		2019
Current provision:
Domestic	$	18,532	$	7,946	$	10,823
Foreign	33,644		14,983		16,694
	$	52,176	$	22,929	$	27,517
Deferred provision/(benefit):
Domestic	$	(15,954)	$	1,343	$	(13,912)
Foreign	(4,372)		1,354		1,567
	$	(20,326)	$	2,697	$	(12,345)
Income tax expense	$	31,850	$	25,626	$	15,172

Schedule of Income Tax Recognized in Other Comprehensive Income

Income taxes (deferred) recognized in AOCI were as follows:


	Year ended December 31,
	2021		2020		2019
Deferred taxes benefit / (expense) recognized on:
Unrealized gain on cash flow hedges	$	(2,308)	$	(1,663)	$	(1,564)
Reclassification adjustment for cash flow hedges	1,530		(500)		1,173
Retirement benefits (incl. effects of tax rate changes)	194		935		312
Reclassification adjustment for retirement benefits	(204)		(127)		16
Foreign currency translation gain/(loss)	3,016		1,946		(644)
Total income tax benefit / (expense) recognized in AOCI	$	2,228	$	591	$	(707)

Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes

The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows:


	Year ended December 31,
	2021		2020		2019
Expected tax expense	$	30,777	$	24,219	$	17,451
Impact of tax holiday	—		(757)		(5,920)
Foreign tax rate differential	1,127		(1,991)		1,660
Deferred tax provision	350		2,888		3,026
Unrecognized tax benefits and interest	161		6		174
State taxes, net of Federal taxes	4,968		3,242		2,137
Non-deductible expenses	3,165		1,467		1,329

Excess tax benefit on stock-based compensation	(3,651)		(2,378)		(2,306)
Research and development credits	(1,727)		(918)		(1,650)
Prior period items	(931)		(182)		(143)
Benefit on settlement of convertible notes	(2,411)		—		—
Others	22		30		(586)
Tax expense	$	31,850	$	25,626	$	15,172

Summary of Components of Deferred Tax Balances

The components of the deferred tax balances as of December 31, 2021 and 2020 are as follows:


	As of
	December 31, 2021		December 31, 2020
Deferred tax assets:
Tax credit carryforward	$	16,236	$	—
Depreciation and amortization expense	10,722		9,710
Stock-based compensation	10,760		9,383
Accrued employee costs and other expenses	13,264		12,208

Net operating loss carryforwards	2,057		2,042
Unrealized exchange loss	408		391
Deferred rent	4,454		4,782
Others	642		281
	$	58,543	$	38,797
Valuation allowance	(188)		(188)
Deferred tax assets	$	58,355	$	38,609

Deferred tax liabilities:
Unrealized exchange gain	$	5,840	$	2,668
Intangible assets	28,119		19,720
Unamortized discount on convertible notes	—		2,753
Others	3,957		6,566
Deferred tax liabilities	$	37,916	$	31,707
Net deferred tax assets	$	20,439	$	6,902

Summary of Activity Related to Gross Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019.


	2021		2020		2019
Balance as of January 1	$	907	$	1,047	$	804
Decreases/(increases) related to prior year tax positions	(12)		—		69
Decreases related to prior year tax positions	—		(324)		(156)
Increases related to current year tax positions	173		184		330

Balance as of December 31	$	1,068	$	907	$	1,047

Stock Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

The following costs by nature of function related to the Company’s stock-based compensation plan are included in the consolidated statements of income:


	Year ended December 31,
	2021		2020		2019
Cost of revenues	$	7,871	$	6,300	$	5,895
General and administrative expenses	16,396		11,009		10,012
Selling and marketing expenses	14,354		10,926		10,163
Total	$	38,621	$	28,235	$	26,070

Income tax benefit related to share-based compensation, including excess tax benefits	$	9,424	$	8,330	$	7,986

Stock Based Compensation Stock Option Activity

Stock option activity under the Company’s stock-based compensation plans is shown below:


	Number of Options	Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Life (Years)
Outstanding at December 31, 2020	31,265	$	25.43	$	1,866	1.9
Granted	—	—		—		—
Exercised	(28,172)	25.19		2,475		—
Forfeited	—	—		—		—
Outstanding at December 31, 2021	3,093	$	27.62	$	362	2.0
Vested and exercisable at December 31, 2021	3,093	$	27.62	$	362	2.0


	Year ended December 31,
	2021		2020		2019
Cash received from options exercised during the year	$	710	$	1,501	$	986

Company's Stock Options Outstanding and Stock Options Vested and Exercisable

The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable at December 31, 2021:


	Options Outstanding, Vested and Exercisable
Range of Exercise Prices	Shares	Weighted-Average Exercise Price

$25.01 to $28.00	3,093	$	27.62

Restricted Stock Activity Under Company's Stock Plans

Restricted stock unit activity under the Company’s stock-based compensation plans is shown below:


	Restricted Stock Units
	Number	Weighted- Average Fair Value
Outstanding at December 31, 2020**	903,666	$	67.84
Granted	550,690	91.23
Vested*	(372,519)	64.01
Forfeited	(99,650)	75.68
Outstanding at December 31, 2021**	982,187	$	81.61

* Includes 18,904 and 14,368 restricted stock units vested during the years ended December 31, 2021 and 2020, respectively, for which the underlying common stock is yet to be issued.

** As of December 31, 2021 and 2020, restricted stock units vested for which the underlying common stock is yet to be issued are 162,481 and 181,638, respectively.

The weighted-average fair value of restricted stock units granted was as follows:


	Year ended December 31,
	2021		2020		2019
Weighted-average fair value	$	91.23	$	76.99	$	64.29

The total grant date fair value of restricted stock units vested was as follows:


	Year ended December 31,
	2021		2020		2019
Total grant date fair value	$	23,845	$	20,072	$	22,084

Performance restricted stock unit activity under the Company’s stock plans is shown below:


	Revenue Based PRSUs			Market Condition Based PRSUs
	Number	Weighted Average Fair Value		Number	Weighted Average Fair Value
Outstanding at December 31, 2020	105,891	$	72.33	105,869	$	97.84
Granted	—	—		121,180	119.80
Adjustment upon final determination of level of performance goal achievement*	(15,134)	64.33		45,189	92.13
Vested	(30,062)	64.33		(90,378)	92.13
Forfeited	(1,831)	78.34		(9,818)	116.50
Outstanding at December 31, 2021	58,864	$	78.29	172,042	$	113.74

Weighted Average Valuation Assumptions for Market Condition Performance Restricted Stock Units

The fair value of each MU granted to employees is estimated on the date of grant using the following weighted average assumptions:


	Year ended December 31,
	2021		2020		2019
Dividend yield	—		—		—
Expected life (years)	2.9		2.9		2.9
Risk free interest rate for expected life	0.53	%	3.85	%	2.46	%
Volatility for expected life	65.24	%	34.30	%	20.52	%

Related Party Disclosures (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Related Party Transactions

The following transactions with the Purchaser were recognized by the Company in connection with the Notes:


	Year ended December 31
	2021		2020		2019
Repayment of Notes in cash	$	200,000	$	—	$	—
Issuance of shares of the Company's common stock	$	36,742	$	—	$	—
Interest expense on the Notes	$	3,442	$	5,250	$	5,206

Summary of Significant Accounting Policies - Summary of Revenues and Reimbursements (Details)	12 Months Ended
	Dec. 31, 2021
Minimum
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment terms	60 days

Summary of Significant Accounting Policies - Schedule of Property and Equipment, Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2021
Maximum \| Software
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years

Summary of Significant Accounting Policies - Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives (Detail)	12 Months Ended
	Dec. 31, 2021
Customer relationships \| Minimum
Finite-lived intangible assets:
Estimated useful lives of intangible assets	7 years
Customer relationships \| Maximum
Finite-lived intangible assets:
Estimated useful lives of intangible assets	15 years
Developed technology \| Minimum
Finite-lived intangible assets:
Estimated useful lives of intangible assets	3 years
Developed technology \| Maximum
Finite-lived intangible assets:
Estimated useful lives of intangible assets	10 years
Trade names and trademarks \| Minimum
Finite-lived intangible assets:
Estimated useful lives of intangible assets	2 years
Trade names and trademarks \| Maximum
Finite-lived intangible assets:
Estimated useful lives of intangible assets	10 years
Non-compete agreements
Finite-lived intangible assets:
Estimated useful lives of intangible assets	4 years

Summary of Significant Accounting Policies - Share-Based Compensation (Details)		12 Months Ended
	Jun. 15, 2018	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based percentage		100.00%
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]
Performance based percentage		50.00%
Vesting period		3 years
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]
Performance based percentage		50.00%
Vesting period		3 years
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) \| Market Condition Based PRSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target shares an employee can earn		200.00%

Segment and Geographical Information - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2021 operating_segment
Segment Reporting [Abstract]
Number of operating segments	4

Segment and Geographical Information - Revenues and Cost of Revenues for Company's Reportable Segments (Detail) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Revenues and cost of revenues for Company's reportable segments [Line Items]

$ 1,122,293

$ 958,434

$ 991,346

^[1]

690,934

623,936

655,490

Loss on settlement of convertible notes, foreign exchange gain, interest expense and other income, net

^[1]

431,359

334,498

335,856

Operating expenses

275,478

224,476

259,403

(9,320)

5,307

6,647

Income tax expense

31,850

25,626

15,172

(Gain)/loss from equity-method investment

(47)

227

269

Net income attributable to ExlService Holdings, Inc. stockholders

114,758

89,476

67,659

Digital operations and solutions

Revenues and cost of revenues for Company's reportable segments [Line Items]

Revenues and cost of revenues for Company's reportable segments [Line Items]

661,621

595,755

634,017

Analytics services

Revenues and cost of revenues for Company's reportable segments [Line Items]

460,672

362,679

357,329

Insurance

381,999

341,770

346,434

239,529

231,884

238,580

Revenues and cost of revenues for Company's reportable segments [Line Items]

142,470

109,886

107,854

Healthcare

112,386

101,315

97,465

69,760

73,143

77,048

Revenues and cost of revenues for Company's reportable segments [Line Items]

42,626

28,172

20,417

Emerging Business

167,236

152,670

190,118

91,737

89,459

108,617

Revenues and cost of revenues for Company's reportable segments [Line Items]

75,499

63,211

81,501

Analytics

460,672

362,679

357,329

289,908

229,450

231,245

$ 170,764

$ 133,229

$ 126,084

[1]	Exclusive of depreciation and amortization expense.

Segment and Geographical Information - Revenues Based on Geographical Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Property, Plant and Equipment [Line Items]
Revenues, net	$ 1,122,293	$ 958,434	$ 991,346
United States
Revenues from External Customers and Property, Plant and Equipment [Line Items]
Revenues, net	964,059	814,672	817,878
Total Non-United States
Revenues from External Customers and Property, Plant and Equipment [Line Items]
Revenues, net	158,234	143,762	173,468
United Kingdom
Revenues from External Customers and Property, Plant and Equipment [Line Items]
Revenues, net	105,734	88,659	113,036
Rest of World
Revenues from External Customers and Property, Plant and Equipment [Line Items]
Revenues, net	$ 52,500	$ 55,103	$ 60,432

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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Derivative Instruments, Gain (Loss) [Line Items]

Segment and Geographical Information - Property, Plant and Equipment, Net Based on Geographical Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 162,700	$ 184,793
India
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	79,604	97,261
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	50,095	46,659
Philippines
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	22,011	29,434
Rest of World
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 10,990	$ 11,439

Revenues, net - Contracts with Customer, Receivables, Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 194,232	$ 147,635
Contract assets	2,524	4,437
Contract liabilities
Deferred revenue (consideration received in advance)	18,247	30,450
Consideration received for process transition activities	$ 2,203	$ 2,774

Revenues, net - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Capitalized Contract Cost [Line Items]
Accounts receivable not billed	$ 93,336,000	$ 63,995,000
Contract Acquisition Costs
Capitalized Contract Cost [Line Items]
Impairment loss in relation to costs capitalized	0	0
Contract Fulfillment Costs
Capitalized Contract Cost [Line Items]
Impairment loss in relation to costs capitalized	$ 0	$ 0

Revenues, net - Contract with Customer Revenue Recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Deferred revenue (consideration received in advance)	$ 30,089	$ 10,949
Consideration received for process transition activities	$ 1,886	$ 1,424

Revenues, net - Contract Acquisition and Fulfillment Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Contract Acquisition Costs
Increase (Decrease) In Capitalized Contract Costs [Roll Forward]
Opening Balance	$ 1,027	$ 1,307
Additions	277	310
Amortization	(793)	(590)
Closing Balance	511	1,027
Contract Fulfillment Costs
Increase (Decrease) In Capitalized Contract Costs [Roll Forward]
Opening Balance	5,631	7,255
Additions	3,742	779
Amortization	(3,578)	(2,403)
Closing Balance	$ 5,795	$ 5,631

Revenues, net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Accounts receivable, including unbilled receivables	$ 194,805	$ 148,824
Less: Allowance for expected credit loss	(573)	(1,189)	$ (1,163)
Accounts receivable, net	$ 194,232	$ 147,635

Revenues, net - Allowance for Credit Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at the beginning of the year	$ 1,189	$ 1,163
Additions / (reductions) during the period	(496)	300
Reductions due to write-off of Accounts Receivables	(129)	(269)
Translation adjustment	9	(5)
Balance at the end of the year	$ 573	$ 1,189

Other Income, net - Summary of Other Income, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Other Income and Expenses [Abstract]
Gain on sale and mark-to-market of mutual funds and money market funds	$ 4,891	$ 9,615	$ 13,180
Interest and dividend income	2,726	2,501	2,184
Others, net	(844)	(51)	1,143
Other income, net	$ 6,773	$ 12,065	$ 16,507

Earnings Per Share - Additional Information (Details) - 3.50% Convertible Senior Notes due October 1, 2024 - Notes - $ / shares	Dec. 31, 2021	Aug. 27, 2021	Oct. 01, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Interest rate	3.50%		3.50%
Conversion price (in dollars per share)	$ 75	$ 118.37	$ 75

Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerators:
Net income	$ 114,758	$ 89,476	$ 67,659
Denominators:
Basic weighted average common shares outstanding (in shares)	33,549,275	34,273,388	34,350,150
Dilutive effect of share based awards (in shares)	408,693	254,717	382,533
Dilutive effect of conversion premium on the Notes (in shares)	286,510	27,059	0
Diluted weighted average common shares outstanding (in shares)	34,244,478	34,555,164	34,732,683
Earnings per share attributable to ExlService Holdings Inc. stockholders:
Basic (in dollars per share)	$ 3.42	$ 2.61	$ 1.97
Diluted (in dollars per share)	$ 3.35	$ 2.59	$ 1.95
Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share (in shares)	10,705	289,061	106,375

Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 135,337	$ 218,530	$ 119,165
Restricted cash (current)	6,174	4,690	5,453
Restricted cash (non-current)	2,299	2,299	2,426
Cash, cash equivalents and restricted cash	$ 143,810	$ 225,519	$ 127,044	$ 104,131

Property and Equipment, net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Owned Assets:
Owned assets, gross	$ 299,361	$ 284,033
Less: Accumulated depreciation and amortization	(213,699)	(191,629)
Property and equipment, net	85,662	92,404
Right-of-use assets under finance leases:
Right of use assets under finance leases, gross	2,685	1,853
Less: Accumulated depreciation and amortization	(2,339)	(1,382)
Property and equipment, net	346	471
Property and equipment, net	$ 86,008	$ 92,875
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property and equipment, net	Property and equipment, net
Network equipment and computers
Owned Assets:
Owned assets, gross	$ 116,023	$ 107,016
Right-of-use assets under finance leases:
Right of use assets under finance leases, gross	$ 91	93
Network equipment and computers \| Minimum
Owned Assets:
Estimated useful lives	3 years
Network equipment and computers \| Maximum
Owned Assets:
Estimated useful lives	5 years
Software
Owned Assets:
Owned assets, gross	$ 101,884	99,708
Software \| Minimum
Owned Assets:
Estimated useful lives	3 years
Software \| Maximum
Owned Assets:
Estimated useful lives	5 years
Leasehold improvements
Owned Assets:
Owned assets, gross	$ 46,401	48,052
Right-of-use assets under finance leases:
Right of use assets under finance leases, gross	$ 1,229	817
Leasehold improvements \| Minimum
Owned Assets:
Estimated useful lives	3 years
Leasehold improvements \| Maximum
Owned Assets:
Estimated useful lives	8 years
Office furniture and equipment
Owned Assets:
Owned assets, gross	$ 22,302	22,210
Right-of-use assets under finance leases:
Right of use assets under finance leases, gross	$ 787	255
Office furniture and equipment \| Minimum
Owned Assets:
Estimated useful lives	3 years
Office furniture and equipment \| Maximum
Owned Assets:
Estimated useful lives	8 years
Motor vehicles
Owned Assets:
Owned assets, gross	$ 693	599
Right-of-use assets under finance leases:
Right of use assets under finance leases, gross	$ 578	688
Motor vehicles \| Minimum
Owned Assets:
Estimated useful lives	2 years
Motor vehicles \| Maximum
Owned Assets:
Estimated useful lives	5 years
Buildings
Owned Assets:
Estimated useful lives	30 years
Owned assets, gross	$ 1,070	1,089
Land
Owned Assets:
Owned assets, gross	700	712
Capital work in progress
Owned Assets:
Owned assets, gross	$ 10,288	$ 4,647

Property and Equipment, net - Depreciation and Amortization Expense and Effect of Foreign Exchange Gain (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 36,354	$ 36,050	$ 30,423
Depreciation and amortization
Property, Plant and Equipment [Line Items]
Effect of foreign exchange gains	$ 524	$ 51	$ 212

Property and Equipment, net - Internally Developed Software Costs, Included under Software (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Cost	$ 19,289	$ 18,371
Less : Accumulated amortization	(10,226)	(5,998)
Internally developed software, net	9,063	12,373
Amortization expense	$ 4,253	$ 4,894	$ 2,745

Property and Equipment, net - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Long-lived assets impairment charges	$ 0	$ 0	$ 2,178,000

Business Combinations, Goodwill and Intangible Assets - Additional Information (Details) $ in Thousands		3 Months Ended	12 Months Ended
	Dec. 16, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Business Acquisition [Line Items]
Contingent consideration		$ 9,000	$ 9,000
Proceeds from borrowings			300,000	$ 110,000	$ 46,000
Revolving Credit Facility
Business Acquisition [Line Items]
Proceeds from borrowings	$ 75,000
Clairvoyant
Business Acquisition [Line Items]
Percentage of business acquired	100.00%
Initial purchase consideration	$ 80,080
Purchase consideration, net	76,831
Earn-out payments	20,000
Contingent consideration	$ 9,000
Acquisition-related costs			$ 761
Clairvoyant \| Customer relationships
Business Acquisition [Line Items]
Acquired finite-lived intangible asset, weighted average useful life	7 years
Clairvoyant \| Developed technology
Business Acquisition [Line Items]
Acquired finite-lived intangible asset, weighted average useful life	3 years
Long-term revenue growth rate
Business Acquisition [Line Items]
Reporting unit, measurement input		0.030
Discount rate \| Minimum
Business Acquisition [Line Items]
Reporting unit, measurement input		0.120
Discount rate \| Maximum
Business Acquisition [Line Items]
Reporting unit, measurement input		0.121

Business Combinations, Goodwill and Intangible Assets - Summary of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 16, 2021	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill	$ 403,902		$ 349,088	$ 349,529
Contingent consideration	$ 9,000
Clairvoyant
Business Acquisition [Line Items]
Cash and cash equivalents		$ 5,606
Accounts receivable, net		9,042
Other current assets		352
Property and equipment, net		399
Other assets		376
Total assets		50,045
Accounts payable		(1,241)
Accrued expenses and other current liabilities		(4,833)
Deferred tax liabilities		(9,383)
Other non-current liabilities		(238)
Total liabilities		(15,695)
Net assets acquired		34,350
Goodwill		55,225
Total purchase consideration		89,575
Contingent consideration		9,000
Clairvoyant \| Customer relationships
Business Acquisition [Line Items]
Intangible assets, net		31,600
Clairvoyant \| Developed technology
Business Acquisition [Line Items]
Intangible assets, net		2,070
Clairvoyant \| Trade names and trademarks
Business Acquisition [Line Items]
Intangible assets, net		300
Clairvoyant \| Non-compete agreements
Business Acquisition [Line Items]
Intangible assets, net		$ 300

Business Combinations, Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Beginning balance	$ 349,088	$ 349,529
Goodwill reallocation		0
Currency translation adjustments	(411)	(441)
Acquisition	55,225
Ending balance	403,902	349,088
Insurance
Goodwill [Roll Forward]
Beginning balance	50,499	38,276
Goodwill reallocation		12,192
Currency translation adjustments	(71)	31
Acquisition	0
Ending balance	50,428	50,499
Healthcare
Goodwill [Roll Forward]
Beginning balance	21,953	19,276
Goodwill reallocation		2,693
Currency translation adjustments	(11)	(16)
Acquisition	0
Ending balance	21,942	21,953
Emerging Business
Goodwill [Roll Forward]
Beginning balance	49,348	0
Goodwill reallocation		49,803
Currency translation adjustments	(328)	(455)
Acquisition	0
Ending balance	49,020	49,348
Analytics
Goodwill [Roll Forward]
Beginning balance	227,288	227,289
Goodwill reallocation		0
Currency translation adjustments	(1)	(1)
Acquisition	55,225
Ending balance	282,512	227,288
TT&L
Goodwill [Roll Forward]
Beginning balance	0	12,457
Goodwill reallocation		(12,457)
Currency translation adjustments	0	0
Acquisition	0
Ending balance	0	0
F&A
Goodwill [Roll Forward]
Beginning balance	0	46,905
Goodwill reallocation		(46,905)
Currency translation adjustments	0	0
Acquisition	0
Ending balance	0	0
All Other
Goodwill [Roll Forward]
Beginning balance	0	5,326
Goodwill reallocation		(5,326)
Currency translation adjustments	0	0
Acquisition	0
Ending balance	$ 0	$ 0

Business Combinations, Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Finite-lived intangible assets:
Gross Carrying Amount	$ 130,056	$ 101,967
Accumulated Amortization	(49,874)	(43,273)
Total	80,182	58,694
Indefinite-lived intangible assets:
Total intangible assets, gross carrying amount	130,956	102,867
Total intangible assets, net carrying amount	81,082	59,594
Trade names and trademarks
Indefinite-lived intangible assets:
Trade names and trademarks	900	900
Customer relationships
Finite-lived intangible assets:
Gross Carrying Amount	103,016	73,357
Accumulated Amortization	(33,018)	(27,464)
Total	69,998	45,893
Developed technology
Finite-lived intangible assets:
Gross Carrying Amount	25,040	23,510
Accumulated Amortization	(15,850)	(11,858)
Total	9,190	11,652
Trade names and trademarks
Finite-lived intangible assets:
Gross Carrying Amount	1,700	5,100
Accumulated Amortization	(1,006)	(3,951)
Total	694	$ 1,149
Non-compete agreements
Finite-lived intangible assets:
Gross Carrying Amount	300
Accumulated Amortization	0
Total	$ 300

Business Combinations, Goodwill and Intangible Assets - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 12,778	$ 14,412	$ 21,558

Business Combinations, Goodwill and Intangible Assets - Weighted Average Life of Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2021
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	6 years 6 months
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	2 years 1 month 6 days
Trade names and trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	2 years 4 months 24 days
Non-compete agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	4 years

Business Combinations, Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 17,004
2023	14,468
2024	11,966
2025	10,539
2026	10,195
2027 and thereafter	16,010
Total	$ 80,182	$ 58,694

Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Receivables from statutory authorities	$ 18,023	$ 15,658
Derivative instruments	8,682	9,755
Advances to suppliers	1,464	3,906
Deferred contract fulfillment costs	1,483	2,888
Contract assets	1,319	1,814
Interest accrued on term deposits	892	169
Others	2,146	2,919
Other current assets	$ 34,009	$ 37,109

Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Lease deposits	$ 9,649	$ 9,788
Deposits with statutory authorities	6,417	6,341
Derivative instruments	6,307	6,933
Deferred contract fulfillment costs	4,312	2,743
Contract assets	1,205	2,623
Receivable from Statutory authorities	222	754
Term deposits	186	216
Others	2,071	2,701
Other assets	$ 30,369	$ 32,099

Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accrued expenses	$ 44,405	$ 39,951
Payable to statutory authorities	13,902	10,594
Accrued capital expenditures	7,404	7,857
Client liabilities	6,097	4,740
Derivative instruments	1,852	435
Interest payable	252	1,399
Finance lease liabilities	141	229
Other current liabilities	1,071	1,205
Accrued expenses and other current liabilities	$ 75,124	$ 66,410
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities

Other Non-Current liabilities - Summary of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Liabilities, Noncurrent [Abstract]
Retirement benefits	$ 9,604	$ 8,940
Contingent consideration	9,000	0
Derivative instruments	1,785	29
Deferred transition revenue	995	924
Unrecognized tax benefits	1,068	907
Finance lease liabilities	229	281
Accrued capital expenditures	0	3,486
Others	120	3,568
Other non-current liabilities	$ 22,801	$ 18,135
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other non-current liabilities	Other non-current liabilities

Accumulated Other Comprehensive Income/( Loss) - Summary of Accumulated Other Comprehensive Income/( Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 719,172	$ 670,001	$ 618,319
Gains / (losses) recognized during the year	(7,029)	9,724
Reclassification to net income	(8,555)	(407)
Income tax effects	2,228	591
Loss on net investment hedges	(1,134)	0	0
Ending balance	693,156	719,172	670,001
Foreign currency translation loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(86,185)	(87,591)
Gains / (losses) recognized during the year	(11,134)	(540)
Reclassification to net income	0	0
Income tax effects	3,016	1,946
Loss on net investment hedges	(1,134)
Ending balance	(95,437)	(86,185)	(87,591)
Unrealized gain on cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	13,799	4,098
Gains / (losses) recognized during the year	4,663	12,665
Reclassification to net income	(9,264)	(801)
Income tax effects	(778)	(2,163)
Loss on net investment hedges	0
Ending balance	8,420	13,799	4,098
Retirement benefits
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(2,598)	(1,399)
Gains / (losses) recognized during the year	(558)	(2,401)
Reclassification to net income	709	394
Income tax effects	(10)	808
Loss on net investment hedges	0
Ending balance	(2,457)	(2,598)	(1,399)
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(74,984)	(84,892)	(83,467)
Ending balance	$ (89,474)	$ (74,984)	$ (84,892)

Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents (money market funds)	$ 5,374	$ 13,463
Mutual funds	127,551	160,441
Derivative financial instruments	14,989	16,688
Total	147,914	190,592
Liabilities
Derivative financial instruments	3,637	464
Contingent consideration	9,000
Total	12,637	464
(Level 1)
Assets
Cash and cash equivalents (money market funds)	5,374	13,463
Mutual funds	127,551	160,441
Derivative financial instruments	0	0
Total	132,925	173,904
Liabilities
Derivative financial instruments	0	0
Contingent consideration	0
Total	0	0
(Level 2)
Assets
Cash and cash equivalents (money market funds)	0	0
Mutual funds	0	0
Derivative financial instruments	14,989	16,688
Total	14,989	16,688
Liabilities
Derivative financial instruments	3,637	464
Contingent consideration	0
Total	3,637	464
(Level 3)
Assets
Cash and 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	9,000
Total	$ 9,000	$ 0

Fair Value Measurements - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 9,000,000
Impairment charges	0	$ 0
(Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	9,000,000
(Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 0
Fair value of convertible notes		$ 152,384,000

Derivatives and Hedge Accounting - Additional Information (Detail) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)	Dec. 31, 2021 GBP (£)	Dec. 31, 2021 EUR (€)	Dec. 31, 2021 COP ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 GBP (£)	Dec. 31, 2020 EUR (€)	Dec. 31, 2020 COP ($)
Derivative Instruments, Gain (Loss) [Line Items]
Cash flow hedge gain to be reclassified within twelve months	$ 7,345
Maximum outstanding term of cash flow hedges	42 months
Derivative designated as hedging instruments \| Derivatives in cash flow hedging relationships \| Foreign currency exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Foreign exchange contracts outstanding	$ 514,580				$ 451,935
Derivative not designated as hedging instruments \| Foreign currency exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Foreign exchange contracts outstanding	$ 134,612	£ 6,763	€ 1,343	$ 2,541,902	$ 143,394	£ 6,753	€ 2,447	$ 8,287,950

Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Detail) - Foreign currency exchange contracts - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Derivative designated as hedging instruments \| Other current assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset	$ 8,669	$ 9,740
Derivative designated as hedging instruments \| Other assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset	6,307	6,933
Derivative designated as hedging instruments \| Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability	1,324	176
Derivative designated as hedging instruments \| Other non-current liabilities
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability	1,785	29
Derivative not designated as hedging instruments \| Other current assets
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, asset	13	15
Derivative not designated as hedging instruments \| Accrued expenses and other current liabilities
Derivatives, Fair Value [Line Items]
Foreign currency exchange contracts, liability	$ 528	$ 259

Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Gain recognized in consolidated statements of income	$ 4,313	$ 4,432	$ 3,752
Foreign currency exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gain recognized in AOCI	1,134	0	0
Derivatives in cash flow hedging relationships \| Derivative designated as hedging instruments \| Foreign currency exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gain recognized in AOCI	4,663	12,665	8,773
Fair value hedge \| Gain/ (loss) on foreign currency exchange contracts \| Derivative not designated as hedging instruments \| Foreign currency exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain recognized in consolidated statements of income	$ 196	$ 3,686	$ 3,208

Derivatives and Hedge Accounting - Location of Gain or Loss Recognized (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

General and administrative expenses

^[1]

$ 690,934

$ 623,936

$ 655,490

142,040

113,891

126,909

Selling and marketing expenses

84,306

60,123

71,842

Depreciation and amortization expense

49,132

50,462

51,981

Income before income tax expense and earnings from equity affiliates

146,561

115,329

83,100

Income tax benefit/(expense) relating to above

(31,850)

(25,626)

(15,172)

Net income attributable to ExlService Holdings, Inc. stockholders

114,758

89,476

67,659

Foreign exchange gain, net

4,313

4,432

3,752

Gain/ (loss) on foreign currency exchange contracts | Derivatives Designated as Hedging Instruments | Derivatives in cash flow hedging relationships | Foreign currency exchange contracts

Derivative Instruments, Gain (Loss) [Line Items]

General and administrative expenses

7,785

1,008

3,269

948

(161)

424

Selling and marketing expenses

(5)

Depreciation and amortization expense

478

(41)

212

Income before income tax expense and earnings from equity affiliates

9,264

801

3,951

Income tax benefit/(expense) relating to above

(1,530)

500

(1,173)

Net income attributable to ExlService Holdings, Inc. stockholders

7,734

1,301

2,778

Gain/ (loss) on foreign currency exchange contracts | Derivative not designated as hedging instruments | Fair value hedge | Foreign currency exchange contracts

Derivative Instruments, Gain (Loss) [Line Items]

Foreign exchange gain, net

$ 196

$ 3,686

$ 3,208

[1]	Exclusive of depreciation and amortization expense.

Derivatives and Hedge Accounting - Effect of Net Investment Hedges on AOCI/(L) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Foreign currency exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Effect of net investment hedges on accumulated other comprehensive income	$ 1,134	$ 0	$ 0

Borrowings - Company's Debt Position (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Current portion of long-term borrowings	$ 260,016	$ 25,000
Long-term borrowings	0	214,000
Unamortized debt discount	0	(11,236)
Unamortized debit issuance costs	0	(803)
Long-term borrowings	0	201,961
Total	260,016	226,961
Notes
Debt Instrument [Line Items]
Current portion of long-term borrowings		0
Long-term borrowings		150,000
Unamortized debt discount		(11,236)
Unamortized debit issuance costs		(803)
Long-term borrowings		137,961
Total		137,961
Revolving Credit Facility
Debt Instrument [Line Items]
Current portion of long-term borrowings	260,016	25,000
Long-term borrowings	0	64,000
Unamortized debt discount	0	0
Unamortized debit issuance costs	0	0
Long-term borrowings	0	64,000
Total	260,016	89,000
Unamortized debt issuance costs	$ 232	$ 490

Borrowings - Additional Information (Detail) $ / shares in Units, $ in Thousands					12 Months Ended
	Oct. 01, 2021 numberOfDays	Aug. 27, 2021 USD ($) numberOfDays $ / shares shares	Oct. 01, 2018 USD ($) $ / shares	Nov. 21, 2017 USD ($)	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Jul. 02, 2018 USD ($)
Credit Facilities [Line Items]
Repayments of debt					$ 329,031	$ 120,867	$ 98,247
Loss on settlement of convertible notes					12,845	0	$ 0
Outstanding letters of credit					$ 461	$ 461
3.50% Convertible Senior Notes due October 1, 2024 \| Notes
Credit Facilities [Line Items]
Debt instrument face amount			$ 150,000
Interest rate			3.50%		3.50%
Conversion rate			0.0133333
Conversion price (in dollars per share) \| $ / shares		$ 118.37	$ 75		$ 75
Threshold percentage of stock price trigger	150.00%
Convertible debt, threshold trading days \| numberOfDays	20
Convertible debt, threshold consecutive trading days \| numberOfDays	30
Aggregate consideration		$ 236,742
Repayments of debt		$ 200,000
Common stock issued (in shares) \| shares		310,394			310,394
Debt instrument, day volume \| numberOfDays		20
Aggregate consideration, debt component		$ 152,742
Aggregate consideration, equity component		$ 84,000
Effective interest rate		2.90%			3.60%	3.60%	3.60%
Unamortized debt issuance costs		$ 139,897
Loss on settlement of convertible notes					$ 12,845
Revolving Credit Facility
Credit Facilities [Line Items]
Unamortized debt issuance costs					$ 232	$ 490
Revolving Credit Facility \| Credit Agreement
Credit Facilities [Line Items]
Revolving credit facility				$ 200,000
Option to increase additional credit facility				100,000				$ 100,000
Line of credit , maximum borrowing capacity								$ 300,000
Unrestricted domestic cash and cash equivalents				$ 50,000
Interest coverage ratio, maximum				3.5
Interest coverage ratio, minimum				3.0
Revolving Credit Facility \| Credit Agreement \| Minimum
Credit Facilities [Line Items]
Commitment fee percentage range on unused credit facility				0.15%
Revolving Credit Facility \| Credit Agreement \| Maximum
Credit Facilities [Line Items]
Commitment fee percentage range on unused credit facility				0.30%
Revolving Credit Facility \| Credit Agreement \| Prime Rate \| Minimum
Credit Facilities [Line Items]
Basis spread on variable rate				0.00%
Revolving Credit Facility \| Credit Agreement \| Prime Rate \| Maximum
Credit Facilities [Line Items]
Basis spread on variable rate				0.75%
Revolving Credit Facility \| Credit Agreement \| London Interbank Offered Rate (LIBOR) \| Minimum
Credit Facilities [Line Items]
Basis spread on variable rate				1.00%
Revolving Credit Facility \| Credit Agreement \| London Interbank Offered Rate (LIBOR) \| Maximum
Credit Facilities [Line Items]
Basis spread on variable rate				1.75%

Borrowings - Credit Facilities Carried an Effective Interest Rate (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Credit Agreement \| Revolving Credit Facility
Debt Instrument [Line Items]
Effective Interest Rate	1.70%	2.30%	4.00%

Borrowings - Notes Carried an Effective Interest Rate (Details)	Dec. 31, 2021	Aug. 27, 2021	Dec. 31, 2020	Dec. 31, 2019
3.50% Convertible Senior Notes due October 1, 2024 \| Notes
Debt Instrument [Line Items]
Effective Interest Rate	3.60%	2.90%	3.60%	3.60%

Borrowings - Interest Expense and Amortization of Debt Discount (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Amortization of debt discount on the Notes	$ 1,795	$ 2,616	$ 2,472
3.50% Convertible Senior Notes due October 1, 2024 \| Notes
Debt Instrument [Line Items]
Interest expense on the Notes	3,442	5,250	5,206
Amortization of debt discount on the Notes	$ 1,795	$ 2,616	$ 2,472

Borrowings - Maturities of Borrowings (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Revolving Credit Facility
Credit Facilities [Line Items]
2022	$ 260,016
Interest payments
Credit Facilities [Line Items]
2022	$ 2,510

Capital Structure - Additional Information (Detail)		12 Months Ended
Capital Structure - Additional Information (Detail)	Aug. 27, 2021 shares	Dec. 31, 2021 USD ($) class_of_common_stock shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Oct. 05, 2021 USD ($)	Dec. 16, 2019 USD ($)
Equity, Class of Treasury Stock [Line Items]
Number of classes of common stock outstanding \| class_of_common_stock		1
Common stock, dividends		$ 0	$ 0	$ 0
3.50% Convertible Senior Notes due October 1, 2024 \| Notes
Equity, Class of Treasury Stock [Line Items]
Common stock issued (in shares) \| shares	310,394	310,394
2019 Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock authorized by board of directors						$ 200,000,000
2022 Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock authorized by board of directors					$ 300,000,000

Capital Structure - Purchase of Common Stock from Employees Withholding Tax Payments Related to Vesting of Restricted Stock (Details - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Equity [Abstract]
Shares repurchased (in shares)	31,309	28,052	23,859
Total consideration	$ 2,752	$ 2,131	$ 1,490
Weighted average purchase price per share (in dollars per share)	$ 87.90	$ 75.96	$ 62.47

Capital Structure - Purchased Shares of its Common Stock, Including Commissions (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Equity [Abstract]
Shares repurchased (in shares)	1,087,325	1,085,153	643,486
Total consideration	$ 115,605	$ 77,818	$ 39,874
Weighted average purchase price per share (in dollars per share)	$ 106.32	$ 71.71	$ 61.96

Employee Benefit Plans - Summary of Change in Projected Benefit Obligation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Change in benefit obligation
Projected benefit obligation as of January 1	$ 20,466	$ 15,311
Service cost	3,512	2,706	$ 1,953
Interest cost	929	964	875
Benefits paid	(1,844)	(878)
Acquisition adjustments	209	0
Actuarial loss	539	2,425
Effect of exchange rate changes	(540)	(62)
Projected benefit obligation as of December 31	23,271	20,466	$ 15,311
Unfunded amount-non-current	9,604	8,940
Unfunded amount-current	62	14
Total accrued liability	9,666	8,954
Accumulated benefit obligation	14,794	12,490
Accumulated benefit obligation in excess of plan assets	$ 1,189	$ 978

Employee Benefit Plans - Net Period Benefit Costs (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Service cost	$ 3,512	$ 2,706	$ 1,953
Interest cost	929	964	875
Expected return on plan assets	(796)	(636)	(568)
Amortization of actuarial (gain)/loss, gross of tax	709	394	(159)
Net gratuity cost	4,354	3,428	2,101
Income tax effects on amortization of actuarial (gain)/loss	(204)	(127)	16
Amortization of actuarial (gain)/loss, net of tax	$ 505	$ 267	$ (143)

Employee Benefit Plans - Summary of Components of Actuarial Gain/(Loss) (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax [Abstract]
Net actuarial loss	$ (3,624)	$ (3,772)	$ (1,762)
Net prior service cost	(12)	(15)	(18)
Accumulated other comprehensive income/(loss), excluding tax effects	$ (3,636)	$ (3,787)	$ (1,780)

Employee Benefit Plans - Summary of Weighted Average Actuarial Assumptions (Detail)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate	5.60%	4.60%	6.50%
Rate of increase in compensation levels	7.60%	7.10%	6.00%
Expected long-term rate of return on plan assets per annum	6.80%	7.00%	7.50%

Employee Benefit Plans - Summary of Expected Benefit Payments (Detail) $ in Thousands	Dec. 31, 2021 USD ($)
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2022	$ 3,165
2023	2,979
2024	2,738
2025	2,464
2026	2,162
2027 to 2031	$ 8,006

Employee Benefit Plans - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2021
Retirement Benefits [Abstract]
Percentage of expected return on plan assets	6.70%
Percentage of discretionary contributions towards 401(k) Plan, maximum	4.00%

Employee Benefit Plans - Change in Plan Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Plan assets at the beginning of the year	$ 11,512	$ 8,784
Actual return	777	661
Employer contribution	3,361	3,099
Benefits paid	(1,835)	(869)
Effect of exchange rate changes	(210)	(163)
Plan assets at the end of the year	$ 13,605	$ 11,512

Amount of contribution received by defined benefit plan from employer which increases plan assets.

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

Employee Benefit Plans - Contribution Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Contributions to the 401(k) Plans	$ 3,693	$ 3,577	$ 3,617
Company's contribution to the 401(k) Plan	$ 16,340	$ 11,332	$ 10,614

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Lease
Operating lease right-of-use assets	$ 76,692	$ 91,918
Operating lease liabilities – Current	18,487	18,894
Operating lease liabilities – Non-current	68,506	84,874
Total operating lease liabilities	86,993	103,768
Finance Lease
Property and equipment, gross	2,685	1,853
Accumulated depreciation	(2,339)	(1,382)
Property and equipment, net	346	471
Finance lease liabilities – Current	141	229
Finance lease liabilities – Non-current	229	281
Total finance lease liabilities	$ 370	$ 510

Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Finance lease:
Amortization of right-of-use assets	$ 188	$ 235
Interest on lease liabilities	63	81
Total finance lease cost	251	316
Operating lease	26,326	27,146
Variable lease costs	7,621	8,496
Total operating lease cost	33,947	35,642
Total lease cost	$ 34,198	$ 35,958

Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash payments for amounts included in the measurement of lease liabilities :
Operating cash outflows for operating leases	$ 25,674	$ 26,589
Operating cash outflows for finance leases	63	81
Financing cash outflows for finance leases	201	249	$ 336
Right-of-use assets obtained in exchange for new operating lease liabilities	4,547	18,765
Right-of-use assets obtained in exchange for new finance lease liabilities	$ 71	$ 45
Weighted-average remaining lease term (in years)
Finance lease	2 years 1 month 6 days	1 year 9 months 18 days
Operating lease	5 years 9 months 18 days	6 years 3 months 18 days
Weighted-average discount rate
Finance lease	14.50%	10.50%
Operating lease	7.20%	7.40%

Leases - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Reduction in lease liabilities	$ 2,917	$ 3,143
Reduction in ROU assets	2,917	3,143
Operating lease, impairment charge	$ 0	$ 0	$ 1,449

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
2022	$ 24,020	$ 25,829
2023	22,666	24,316
2024	17,745	22,066
2025	10,741	17,084
2026	8,395	9,749
2027 and thereafter	25,198	34,334
Total lease payments	108,765	133,378
Less: Imputed interest	21,772	29,610
Present value of lease liabilities	86,993	103,768
Finance Leases
2022	185	262
2023	147	194
2024	72	114
2025	34	36
2026	17	11
2027 and thereafter	0	0
Total lease payments	455	617
Less: Imputed interest	85	107
Present value of lease liabilities	$ 370	$ 510

Leases - Maturities of Lease Liabilities Prior Year (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
2021	$ 24,020	$ 25,829
2022	22,666	24,316
2023	17,745	22,066
2024	10,741	17,084
2025	8,395	9,749
2026 and thereafter	25,198	34,334
Total lease payments	108,765	133,378
Less: Imputed interest	21,772	29,610
Present value of lease liabilities	86,993	103,768
Finance Leases
2021	185	262
2022	147	194
2023	72	114
2024	34	36
2025	17	11
2026 and thereafter	0	0
Total lease payments	455	617
Less: Imputed interest	85	107
Present value of lease liabilities	$ 370	$ 510

Income Taxes - Summary of Components of Income / (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Domestic	$ 43,759	$ 30,893	$ (16,685)
Foreign	102,802	84,436	99,785
Income before income tax expense and earnings from equity affiliates	$ 146,561	$ 115,329	$ 83,100

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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Income Taxes - Summary of Income Tax Expense / (Benefit) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current provision:
Domestic	$ 18,532	$ 7,946	$ 10,823
Foreign	33,644	14,983	16,694
Total	52,176	22,929	27,517
Deferred provision/(benefit):
Domestic	(15,954)	1,343	(13,912)
Foreign	(4,372)	1,354	1,567
Total	(20,326)	2,697	(12,345)
Income tax expense	$ 31,850	$ 25,626	$ 15,172

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

Deferred taxes benefit / (expense) recognized on:

Income Taxes - Summary of Income Taxes Recognized in Other Comprehensive Income (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Unrealized gain on cash flow hedges

$ (2,308)

$ (1,663)

$ (1,564)

Reclassification adjustment for cash flow hedges

1,530

(500)

1,173

Retirement benefits (incl. effects of tax rate changes)

194

935

312

Reclassification adjustment for retirement benefits

(204)

(127)

Foreign currency translation gain/(loss)

3,016

1,946

(644)

Total income tax benefit / (expense) recognized in AOCI

^[1]

$ 2,228

$ 591

$ (707)

[1]	These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gains/(losses). Refer to Note 21 - Income Taxes to the consolidated financial statements.

Amount of tax expense (benefit) allocated to other comprehensive income (loss).

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Income Taxes - Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Expected tax expense	$ 30,777	$ 24,219	$ 17,451
Impact of tax holiday	0	(757)	(5,920)
Foreign tax rate differential	1,127	(1,991)	1,660
Deferred tax provision	350	2,888	3,026
Unrecognized tax benefits and interest	161	6	174
State taxes, net of Federal taxes	4,968	3,242	2,137
Non-deductible expenses	3,165	1,467	1,329
Excess tax benefit on stock-based compensation	(3,651)	(2,378)	(2,306)
Research and development credits	(1,727)	(918)	(1,650)
Prior period items	(931)	(182)	(143)
Benefit on settlement of convertible notes	(2,411)	0	0
Others	22	30	(586)
Income tax expense	$ 31,850	$ 25,626	$ 15,172

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Taxes [Line Items]
Effective tax rate increased	21.70%	22.20%
Income tax expense	$ 31,850,000	$ 25,626,000	$ 15,172,000
Excess tax benefits, stock awards	3,651,000	2,378,000	2,306,000
Tax benefit on settlement of notes	2,411,000	0	0
Withholding taxes	33,644,000	$ 14,983,000	$ 16,694,000
Accrued withholding taxes	$ 10,988,000
Effective tax rate in Philippines post tax exemption	5.00%
Effect of diluted earnings per share, tax holiday (in dollars per share)	$ 0	$ 0.02	$ 0.17
Operating loss carryforward valuation allowance	$ 188,000	$ 188,000
Unrecognized tax benefits that would impact tax rate if recognized	1,068,000
Unrecognized tax benefits, interest and penalties on income taxes expense	0	$ 0
United States
Income Taxes [Line Items]
Foreign income	66,000,000
Withholding taxes	3,494,000
India
Income Taxes [Line Items]
Foreign income	42,500,000
Withholding taxes	$ 7,494,000

Income Taxes - Summary of Components of Deferred Tax Balances (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Tax credit carryforward	$ 16,236	$ 0
Depreciation and amortization expense	10,722	9,710
Stock-based compensation	10,760	9,383
Accrued employee costs and other expenses	13,264	12,208
Net operating loss carryforwards	2,057	2,042
Unrealized exchange loss	408	391
Deferred rent	4,454	4,782
Others	642	281
Deferred tax assets	58,543	38,797
Valuation allowance	(188)	(188)
Deferred tax assets	58,355	38,609
Deferred tax liabilities:
Unrealized exchange gain	5,840	2,668
Intangible assets	28,119	19,720
Unamortized discount on convertible notes	0	2,753
Others	3,957	6,566
Deferred tax liabilities	37,916	31,707
Net deferred tax assets	$ 20,439	$ 6,902

Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance as of January 1	$ 907	$ 1,047	$ 804
Decreases/(increases) related to prior year tax positions		0	69
Decreases related to prior year tax positions	(12)	(324)	(156)
Increases related to current year tax positions	173	184	330
Balance as of December 31	$ 1,068	$ 907	$ 1,047

Stock Based Compensation - Additional Information (Detail) - shares		12 Months Ended
	Jun. 15, 2018	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiring period of equity options to employees	10 years
Vesting period	4 years
2018 Stock Options Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares available for grant (in shares)	3,175,000
Number of shares available for grant (in shares)		1,777,687
Stock issued, stock-based compensation plans (in shares)		120,440

Stock Based Compensation - Costs Related to Company's Stock Based Compensation Plan (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expenses	$ 38,621	$ 28,235	$ 26,070
Income tax benefit related to share-based compensation, including excess tax benefits	9,424	8,330	7,986
Cost of revenues
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expenses	7,871	6,300	5,895
General and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expenses	16,396	11,009	10,012
Selling and marketing expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expenses	$ 14,354	$ 10,926	$ 10,163

Stock Based Compensation - Stock Options Narrative (Details) - Employee Stock Option - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%
Unrecognized compensation cost for unvested stock options	$ 0
Number of options, granted (in shares)	0	0	0
Intrinsic value of options exercised	$ 2,475,000	$ 3,488,000	$ 3,187,000

Stock Based Compensation - Stock Based Compensation Stock Option Activity (Detail) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of options, outstanding, beginning balance (in shares)	31,265
Number of options, granted (in shares)	0	0	0
Number of options, exercised (in shares)	(28,172)
Number of options, forfeited (in shares)	0
Number of options, outstanding, ending balance (in shares)	3,093	31,265
Number of options, vested and exercisable at December 31, 2021 (in shares)	3,093
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)	$ 25.43
Weighted-average exercise price, granted (in dollars per share)	0
Weighted-average exercise price, exercised (in dollars per share)	25.19
Weighted-average exercise price, forfeited (in dollars per share)	0
Weighted-average exercise price, outstanding, ending balance (in dollars per share)	27.62	$ 25.43
Weighted average exercise price, vested and exercisable at December 31, 2021 (in dollars per share)	$ 27.62
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Aggregate intrinsic value, outstanding	$ 362	$ 1,866
Aggregate intrinsic value, exercised	2,475	$ 3,488	$ 3,187
Aggregate intrinsic value, vested and exercisable at December 31, 2021	$ 362
Weighted-average remaining contractual life	2 years	1 year 10 months 24 days
Weighted-average remaining contractual life, vested and exercisable at December 31, 2021	2 years

Stock Based Compensation - Company's Stock Options Outstanding and Stock Options Vested and Exercisable (Detail)	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Share-based Payment Arrangement [Abstract]
Range of exercise prices, lower range limit (in dollars per share)	$ 25.01
Range of exercise prices, upper range limit (in dollars per share)	$ 28.00
Options outstanding, vested and exercisable (in shares) \| shares	3,093
Options outstanding, vested and exercisable, weighted-average exercise price (in dollars per share)	$ 27.62

Stock Based Compensation - Stock Options Exercised (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Cash received from options exercised during the year	$ 710	$ 1,501	$ 986

Stock Based Compensation - Restricted Stock Unit Activity Under Company's Stock Plans (Detail) - Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number, outstanding, beginning balance (in shares)	903,666
Number, granted (in shares)	550,690
Number, vested (in shares)	(372,519)
Number, forfeited (in shares)	(99,650)
Number, outstanding, ending balance (in shares)	982,187	903,666
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, beginning balance (in dollars per share)	$ 67.84
Weighted-average fair value, granted (in dollars per share)	91.23	$ 76.99	$ 64.29
Weighted-average fair value, vested (in dollars per share)	64.01
Weighted-average fair value, forfeited (in dollars per share)	75.68
Weighted-average fair value, outstanding, ending balance (in dollars per share)	$ 81.61	$ 67.84
Restricted stock units vested for which underlying common stock is yet to be issued (in shares)	18,904	14,368
Restricted stock units vested (in shares)	162,481	181,638

Stock Based Compensation - Restricted Stock Units Fair Value (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 57,897
Cost not yet recognized, period for recognition	2 years 6 months
Weighted-average fair value of restricted stock units granted (in dollars per share)	$ 91.23	$ 76.99	$ 64.29
Total grant date fair value	$ 23,845	$ 20,072	$ 22,084

Stock Based Compensation - Performance Based Stock Awards Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Jun. 15, 2018	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based percentage		100.00%
Revenue Based PRSUs \| Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based percentage		50.00%
Vesting period		3 years
Market Condition Based PRSUs \| Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based percentage		50.00%
Vesting period		3 years
Market Condition Based PRSUs \| Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target shares an employee can earn		200.00%
Performance Based Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost		$ 12,964
Cost not yet recognized, period for recognition		1 year 8 months 12 days

Stock Based Compensation - Summary of Weighted Average Valuation Assumptions for Market Condition Performance Restricted Stock Units (Details) - Market Condition Based PRSUs	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%
Expected life (years)	2 years 10 months 24 days	2 years 10 months 24 days	2 years 10 months 24 days
Risk free interest rate for expected life	0.53%	3.85%	2.46%
Volatility for expected life	65.24%	34.30%	20.52%

Stock Based Compensation - Performance Restricted Stock Activity (Details)	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Revenue Based PRSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number, outstanding, beginning balance (in shares) \| shares	105,891
Number, granted (in shares) \| shares	0
Adjustment upon final determination of level of performance goal achievement (in shares) \| shares	(15,134)
Number, vested (in shares) \| shares	(30,062)
Number, forfeited (in shares) \| shares	(1,831)
Number, outstanding, ending balance (in shares) \| shares	58,864
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, beginning balance (in dollars per share) \| $ / shares	$ 72.33
Weighted-average fair value, granted (in dollars per share) \| $ / shares	0
Weighted-average fair value, adjustment upon final determination of level of performance goal achievement (in dollars per share) \| $ / shares	64.33
Weighted-average fair value, vested (in dollars per share) \| $ / shares	64.33
Weighted-average fair value, forfeited (in dollars per share) \| $ / shares	78.34
Weighted-average fair value, outstanding, ending balance (in dollars per share) \| $ / shares	$ 78.29
Market Condition Based PRSUs
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number, outstanding, beginning balance (in shares) \| shares	105,869
Number, granted (in shares) \| shares	121,180
Adjustment upon final determination of level of performance goal achievement (in shares) \| shares	45,189
Number, vested (in shares) \| shares	(90,378)
Number, forfeited (in shares) \| shares	(9,818)
Number, outstanding, ending balance (in shares) \| shares	172,042
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, beginning balance (in dollars per share) \| $ / shares	$ 97.84
Weighted-average fair value, granted (in dollars per share) \| $ / shares	119.80
Weighted-average fair value, adjustment upon final determination of level of performance goal achievement (in dollars per share) \| $ / shares	92.13
Weighted-average fair value, vested (in dollars per share) \| $ / shares	92.13
Weighted-average fair value, forfeited (in dollars per share) \| $ / shares	116.50
Weighted-average fair value, outstanding, ending balance (in dollars per share) \| $ / shares	$ 113.74

Related Party Disclosures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Oct. 01, 2018
Debt Instrument [Line Items]
Debt outstanding	$ 260,016	$ 226,961
Issuance of shares of the Company's common stock	36,742	0	$ 0
Notes
Debt Instrument [Line Items]
Debt outstanding		137,961
Notes \| 3.50% Convertible Senior Notes due October 1, 2024
Debt Instrument [Line Items]
Debt instrument face amount				$ 150,000
Debt outstanding		150,000
Interest accrued		1,313
Repayment of Notes in cash	200,000	0	0
Interest expense on the Notes	$ 3,442	$ 5,250	$ 5,206

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.