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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2012	Oct. 31, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	ExlService Holdings, Inc.
Entity Central Index Key	0001297989
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		32,146,397

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 118,579	$ 82,393
Short-term investments	6,814	7,869
Restricted cash	729	934
Accounts receivable, net	65,649	55,672
Prepaid expenses	3,260	4,269
Deferred tax assets, net	7,100	6,228
Advance income tax, net	588	3,379
Other current assets	10,832	6,097
Total current assets	213,551	166,841
Fixed assets, net	41,154	42,320
Restricted cash	3,824	3,387
Deferred tax assets, net	10,042	16,495
Intangible assets, net	32,247	36,313
Goodwill	92,886	92,287
Other assets	21,963	19,768
Total assets	415,667	377,411
Current liabilities:
Accounts payable	2,712	4,333
Deferred revenue	4,670	7,772
Accrued employee cost	27,400	27,700
Accrued expenses and other current liabilities	26,681	30,700
Current portion of capital lease obligations	1,741	1,729
Total current liabilities	63,204	72,234
Capital lease obligations, less current portion	3,152	4,244
Non-current liabilities	14,339	22,458
Total liabilities	80,695	98,936
Commitments and contingencies
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued
Stockholders' equity:
Common stock, $0.001 par value; 100,000,000 shares authorized, 32,450,559 shares issued and 32,114,297 shares outstanding as of September 30, 2012 and 31,496,461 shares issued and 31,173,064 shares outstanding as of December 31, 2011	32	31
Additional paid-in-capital	190,155	173,926
Retained earnings	176,719	147,046
Accumulated other comprehensive loss	(28,934)	(39,858)
Total stockholders' equity including shares held in treasury	337,972	281,145
Less: 336,262 shares as of September 30, 2012 and 323,397 shares as of December 31, 2011, held in treasury, at cost	(3,024)	(2,693)
ExlService Holdings, Inc. stockholders' equity	334,948	278,452
Non-controlling interest	24	23
Total stockholders' equity	334,972	278,475
Total liabilities and stockholders' equity	$ 415,667	$ 377,411

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2012	Dec. 31, 2011
Consolidated Balance Sheets [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	15,000,000	15,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	32,450,559	31,496,461
Common stock, shares outstanding	32,114,297	31,173,064
Treasury stock, shares	336,262	323,397

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Consolidated Statements of Income [Abstract]
Revenues	$ 112,639	$ 100,026	$ 325,277	$ 257,961
Cost of revenues (exclusive of depreciation and amortization)	68,650	61,755	201,367	157,971
Gross profit	43,989	38,271	123,910	99,990
Operating expenses:
General and administrative expenses	13,777	13,253	40,982	36,115
Selling and marketing expenses	7,009	6,915	22,502	18,894
Depreciation and amortization	6,333	6,443	18,732	16,405
Total operating expenses	27,119	26,611	82,216	71,414
Income from operations	16,870	11,660	41,694	28,576
Other income, net:
Foreign exchange (loss)/gain	(1,345)	495	(2,367)	3,945
Interest and other income, net	507	374	1,321	1,344
Income before income taxes	16,032	12,529	40,648	33,865
Income tax provision	4,329	4,138	10,975	8,639
Net income	$ 11,703	$ 8,391	$ 29,673	$ 25,226
Earnings per share:
Basic	$ 0.36	$ 0.28	$ 0.93	$ 0.84
Diluted	$ 0.35	$ 0.27	$ 0.90	$ 0.81
Weighted-average number of shares used in computing earnings per share:
Basic	32,154,001	30,293,114	31,857,909	29,926,846
Diluted	33,283,854	31,586,936	33,055,857	31,131,513

Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Consolidated Statements of Comprehensive Income/(Loss) [Abstract]
Net income	$ 11,703	$ 8,391	$ 29,673	$ 25,226
Other comprehensive income:
Unrealized gain/(loss) on effective cash flow hedges, net of taxes	9,070	(6,491)	9,270	(6,251)
Foreign currency translation adjustment	8,034	(12,441)	1,571	(11,457)
Retirement benefits, net of taxes	25	10	83	49
Total other comprehensive income/(loss)	17,129	(18,922)	10,924	(17,659)
Total comprehensive income/(loss)	$ 28,832	$ (10,531)	$ 40,597	$ 7,567

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the economic entity, including both controlling (parent) and noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, including any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Net of tax amount, before reclassification adjustments, of the change in accumulated gain (loss) from derivative instruments designated and qualifying as the effective portion of cash flow hedges. Also includes an entity's share of an equity investee's increase (decrease) in deferred hedging gain (loss).

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+ Details

Consolidated Statements of Cash Flow (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net income	$ 29,673	$ 25,226
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	18,732	16,405
Stock-based compensation expense	7,329	7,287
Amortization of deferred financing cost	114
Non-employee stock options	32	9
Unrealized foreign exchange loss/(gain)	555	(3,053)
Deferred income taxes	2,058	(2,660)
Non-controlling interest	1	2
Change in operating assets and liabilities:
Restricted cash	(122)	37
Accounts receivable	(9,709)	(8,170)
Prepaid expenses and other current assets	(4,717)	(6,324)
Accounts payable	(210)	(270)
Deferred revenue	(3,117)	(865)
Accrued employee cost	(1,448)	(2,025)
Accrued expenses and other liabilities	(447)	7,918
Advance income tax, net	2,775	2,002
Other assets	1,857	4,989
Net cash provided by operating activities	43,356	40,508
Cash flows from investing activities:
Purchase of fixed assets	(17,008)	(12,375)
Business acquisition (net of cash acquired)		(81,173)
Purchase of short-term investments	(9,678)	(7,895)
Proceeds from redemption of short-term investments	10,690	704
Net cash used for investing activities	(15,996)	(100,739)
Cash flows from financing activities:
Principal payments on capital lease obligations	(1,260)	(814)
Proceeds from short term borrowings		30,000
Repayments of short term borrowings		(30,049)
Payment of debt issuance costs		(446)
Acquisition of treasury stock	(331)	(1,624)
Proceeds from exercise of stock options	8,869	5,361
Proceeds from issuance of common stock from public offering		21,965
Direct cost incurred in relation to public offering		(392)
Net cash provided by financing activities	7,278	24,001
Effect of exchange rate changes on cash and cash equivalents	1,548	(2,076)
Net increase/(decrease) in cash and cash equivalents	36,186	(38,306)
Cash and cash equivalents, beginning of period	82,393	111,182
Cash and cash equivalents, end of period	$ 118,579	$ 72,876

Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2012

Organization and Basis of Presentation [Abstract]

Organization and Basis of Presentation

1. Organization and Basis of Presentation

Organization

ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the State of Delaware. ExlService Holdings, together with its subsidiaries (collectively, the “Company”), is a leading provider of outsourcing services and transformation services. The Company’s clients are located principally in the United States and the United Kingdom.

Basis of Presentation

The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

The unaudited interim consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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+ Details

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

The non-controlling interest represents the minority partner’s interest in the operation of exl Service.com (India) Private Limited (“Exl India”) and the profits associated with the minority partner’s interest in those operations, in the unaudited consolidated balance sheet and unaudited consolidated statement of income, respectively. This non-controlling interest in these operations for the three and nine months ended September 30, 2012 and 2011 was insignificant and is included under general and administrative expenses in the unaudited consolidated statements of income.

Use of Estimates

The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Estimates are based upon management’s best assessment of the current business environment. Actual results could differ from those estimates. The significant estimates and assumptions that affect the financial statements include, but are not limited to, allowance for doubtful receivables, service tax receivables, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based compensation expense, depreciation and amortization periods, recoverability of long-term assets including goodwill and intangibles and estimates to complete fixed price contracts.

Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (“FASB”) issued update No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS” (ASU No. 2011-04). ASU No. 2011-04 is intended to improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with GAAP and International Financial Reporting Standards (“IFRS”). ASU No. 2011-04 explains how to measure fair value and does not require additional measurements. Accordingly, the adoption of this accounting pronouncement from January 1, 2012 did not have an impact on the Company’s unaudited consolidated financial statements.

In June 2011, the FASB issued update No. 2011-05, “Presentation of Comprehensive Income” (ASU No. 2011-05). ASU No. 2011-05, effective retrospectively for the interim and annual periods beginning on or after December 15, 2011 (early adoption is permitted), requires presentation of total comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The Company adopted the option of presentation in two separate but consecutive statements. Refer to the Company’s unaudited consolidated statements of comprehensive income/(loss) for further details.

In December 2011, the FASB issued update No. 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards” (ASU No. 2011-12), which deferred the requirement to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for annual and interim financial statements. The adoption of this accounting pronouncement from January 1, 2012 did not have any impact on the Company’s unaudited consolidated financial statements.

In September 2011, the FASB issued update No. 2011-08, “Testing Goodwill for Impairment” (ASU No. 2011-08), which permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If an entity concludes that the fair value of a reporting unit is less than its carrying value, it is necessary to perform a two-step goodwill impairment test. ASU No. 2011-08 became effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of this accounting pronouncement did not have a material impact on the Company’s unaudited consolidated financial statements and the Company does not expect this to have a material impact on its annual goodwill impairment assessment in the fourth quarter of fiscal 2012.

In July 2012, the FASB issued update No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment” (ASU No. 2012-02), which simplifies the guidance for testing the impairment of indefinite-lived intangible assets other than goodwill. Examples of intangible assets subject to the guidance include indefinite-lived trademarks, licenses, and distribution rights. The amendment provides the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. Under the option, an entity is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This amendment is effective for fiscal years beginning after September 15, 2012, with early adoption permitted. The Company does not expect the new guidance to have an impact on its 2013 impairment test results.

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:


	September 30, 2012		December 31, 2011
Accrued expenses	$	17,569	$	15,572
Derivative instruments		4,846		9,170
Other current liabilities		4,266		5,958

Accrued expenses and other current liabilities	$	26,681	$	30,700

Non-current liabilities

Non-current liabilities consist of the following:


	September 30, 2012		December 31, 2011
Derivative instruments	$	3,642	$	8,559
Unrecognized tax benefits		2,726		4,981
Deferred rent		4,310		3,319
Retirement benefits		2,424		3,068
Other non-current liabilities		1,237		2,531

Non-current liabilities	$	14,339	$	22,458

Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

3. Earnings Per Share

Basic earnings per share is computed by dividing net income to common stockholders by the weighted average number of common shares outstanding 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 issued and outstanding at the reporting date, using the treasury stock method. Stock options, restricted stock and restricted stock units that are anti-dilutive are excluded from the computation of weighted average shares outstanding.

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


	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Numerators:
Net income	$	11,703	$	8,391	$	29,673	$	25,226
Denominators:
Basic weighted average common shares outstanding		32,154,001		30,293,114		31,857,909		29,926,846
Dilutive effect of share based awards		1,129,853		1,293,822		1,197,948		1,204,667

Diluted weighted average common shares outstanding		33,283,854		31,586,936		33,055,857		31,131,513

Earnings per share:
Basic	$	0.36	$	0.28	$	0.93	$	0.84
Diluted	$	0.35	$	0.27	$	0.90	$	0.81
Weighted average common shares considered anti-dilutive in computing diluted earnings per share		412,873		316,675		430,309		458,113

Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information [Abstract]

Segment Information

4. Segment Information

The Company is organized around its outsourcing services and transformation services segments.

The chief operating decision maker generally reviews financial information at the consolidated statement of income level but does not review any information except for revenues and cost of revenues of the individual segments. Therefore, the Company does not allocate depreciation, amortization, other income, capital expenditures and income taxes to its operating segments. Consequently, it is not practical to show assets, capital expenditures, depreciation or amortization by segment.

Revenues and cost of revenues for each of the three months ended September 30, 2012 and 2011 for the Company’s outsourcing services and transformation services segments, respectively, are as follows:


	Three months ended September 30, 2012							Three months ended September 30, 2011
	Outsourcing Services		Transformation Services		Total			Outsourcing Services		Transformation Services		Total
Revenues	$	91,984	$	20,655	$	112,639		$	83,176	$	16,850	$	100,026
Cost of revenues (exclusive of depreciation and amortization)		55,658		12,992		68,650			50,961		10,794		61,755

Gross profit	$	36,326	$	7,663	$	43,989		$	32,215	$	6,056	$	38,271

Operating expenses						27,119							26,611
Other income, net						(838	)						869
Income tax provision						4,329							4,138

Net income					$	11,703						$	8,391

Revenues and cost of revenues for each of the nine months ended September 30, 2012 and 2011 for the Company’s outsourcing services and transformation services segments, respectively, are as follows:


	Nine months ended September 30, 2012							Nine months ended September 30, 2011
	Outsourcing Services		Transformation Services		Total			Outsourcing Services		Transformation Services		Total
Revenues	$	270,640	$	54,637	$	325,277		$	208,751	$	49,210	$	257,961
Cost of revenues (exclusive of depreciation and amortization)		166,637		34,730		201,367			126,532		31,439		157,971

Gross profit	$	104,003	$	19,907	$	123,910		$	82,219	$	17,771	$	99,990

Operating expenses						82,216							71,414
Other income, net						(1,046	)						5,289
Income tax provision						10,975							8,639

Net income					$	29,673						$	25,226

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Business Combinations, Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2012

Business Combinations, Goodwill and Intangible Assets [Abstract]

Business Combinations, Goodwill and Intangible Assets

5. Business Combinations, Goodwill and Intangible Assets

On October 1, 2011, the Company acquired Trumbull Services, LLC., a market leader in subrogation services for property and casualty insurance companies, from The Hartford Financial Services Group, Inc. (the “Trumbull Acquisition”).

Goodwill

The following table sets forth details of the Company’s goodwill balance as of September 30, 2012:


	Outsourcing Services			Transformation Services		Total
Balance at January 1, 2011	$	26,585		$	16,785	$	43,370
Goodwill arising from OPI acquisition		54,604			—		54,604
Currency translation adjustments		(5,687	)		—		(5,687	)

Balance at December 31, 2011	$	75,502		$	16,785	$	92,287
Purchase accounting adjustments ⁽¹⁾		422			—		422
Currency translation adjustments		177			—		177

Balance at September 30, 2012	$	76,101		$	16,785	$	92,886

(1)	Relates to the acquisition of Business Process Outsourcing, Inc. (“OPI”) on May 31, 2011 (the “OPI Acquisition”).

Intangible Assets

Information regarding the Company’s intangible assets is as follows:


	As of September 30, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	33,105	$	(6,894	)	$	26,211
Leasehold benefits		3,491		(1,115	)		2,376
Developed technology		2,133		(513	)		1,620
Non-compete agreements		1,317		(1,195	)		122
Trade names and trademarks		2,722		(804	)		1,918

	$	42,768	$	(10,521	)	$	32,247


	As of December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	33,100	$	(4,456	)	$	28,644
Leasehold benefits		3,474		(668	)		2,806
Developed technology		2,133		(351	)		1,782
Non-compete agreements		1,316		(606	)		710
Trade names and trademarks		2,722		(351	)		2,371

	$	42,745	$	(6,432	)	$	36,313

Amortization expense for the three months ended September 30, 2012 and 2011 was $1,324 and $1,395, respectively. Amortization expense for the nine months ended September 30, 2012 and 2011 was $4,083 and $2,943, respectively. The weighted average life of intangible assets was 10.1 years for customer relationships, 6.8 years for leasehold benefits, 10.0 years for developed technology, 1.5 years for non-compete agreements and 3.0 years for trade names and trademarks excluding indefinite life trade names and trademarks. The Company had $900 of indefinite life trade names and trademarks as of both September 30, 2012 and December 31, 2011.


Estimated amortization of intangible assets during the year ending September 30,
2013	$	4,607
2014	$	4,111
2015	$	3,711
2016	$	3,711
2017	$	3,702

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
-Appendix F

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value Measurements

9 Months Ended

Sep. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

6. Fair Value Measurements

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 on a recurring basis as of September 30, 2012 and December 31, 2011. The table excludes short-term investments, accounts receivable, short-term borrowings, accounts payable and accrued expenses for which fair values approximate their carrying amounts.


As of September 30, 2012	Level 1		Level 2		Level 3		Total
Assets
Money market and mutual funds	$	83,225	$	—	$	—	$	83,225
Derivative financial instruments		—		2,759		—		2,759

Total	$	83,225	$	2,759	$	—	$	85,984

Liabilities
Derivative financial instruments	$	—	$	8,488	$	—	$	8,488

Total	$	—	$	8,488	$	—	$	8,488


As of December 31, 2011	Level 1		Level 2		Level 3		Total
Assets
Money market and mutual funds	$	42,067	$	—	$	—	$	42,067
Derivative financial instruments		—		32		—		32

Total	$	42,067	$	32	$	—	$	42,099

Liabilities
Derivative financial instruments	$	—	$	17,729	$	—	$	17,729

Total	$	—	$	17,729	$	—	$	17,729

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 broker quotations and are classified as Level 2. See Note 7 for further details.

- Definition

The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 6
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 33
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Derivatives and Hedge Accounting

9 Months Ended

Sep. 30, 2012

Derivatives and Hedge Accounting [Abstract]

Derivatives and Hedge Accounting

7. 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 and to minimize earnings and cash flow volatility associated with changes in foreign currency exchanges rates. The Company’s derivative financial instruments are largely forward foreign exchange contracts that are designated effective and that qualify as cash flow hedges under ASC topic 815, “Derivatives and hedging” (ASC No. 815). The Company also uses derivatives consisting of foreign currency exchange contracts not designated as hedging instruments under ASC No. 815 to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the Company’s functional currency. The Company’s primary exchange rate exposure is with the U.K. pound sterling and the Indian rupee. The Company also has exposure in Philippine pesos, Czech koruna and other local currencies in which it operates.

The Company had outstanding foreign exchange contracts totaling $226,555 and GBP 11,496 as of September 30, 2012 and totaling $235,866 and GBP 10,368 as of December 31, 2011. The Company estimates that approximately $3,297 of net derivative losses included in accumulated other comprehensive income (“AOCI”) could be reclassified into earnings within the next twelve months based on exchange rates prevailing as of September 30, 2012. As of September 30, 2012, the maximum outstanding term of derivative instruments that hedge forecasted transactions was thirty-three months.

The Company evaluates the effectiveness of its hedging positions at the time a contract is entered into as well as on an ongoing basis. If during this time a contract is deemed ineffective, the change in the fair value is recorded in the unaudited consolidated statements of income and is included in foreign exchange (loss)/gain. 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 derivative amounts recorded in equity are reclassified to earnings. No amounts of gains or losses were reclassified from AOCI into earnings as a result of forecasted transactions that failed to occur during the three and nine months ended September 30, 2012 and 2011.

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

Derivatives designated as hedging instruments


	September 30, 2012		December 31, 2011
Other current assets:
Foreign currency exchange contracts	$	1,409	$	—
Other assets:
Foreign currency exchange contracts	$	1,350	$	—
Accrued expenses and other current liabilities:
Foreign currency exchange contracts	$	4,706	$	9,170
Other non-current liabilities:
Foreign currency exchange contracts	$	3,642	$	8,559

Derivatives not designated as hedging instruments:


	September 30, 2012		December 31, 2011
Other current assets:
Foreign currency exchange contracts	$	—	$	32
Accrued expenses and other current liabilities:
Foreign currency exchange contracts	$	140	$	—

The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the three months ended September 30, 2012 and 2011:


Derivatives in Cash Flow Hedging Relationships	Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)					Location of (Loss)/Gain Reclassified from AOCI into Income (Effective Portion)	Amount of (Loss)/Gain Reclassified from AOCI into Income (Effective Portion)					Location of Gain/ (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	2012		2011				2012			2011			2012		2011
Foreign exchange contracts	$	9,980	$	(5,835	)	Foreign exchange (loss)/gain	$	(2,018	)	$	656	Foreign exchange (loss)/gain	$	—	$	—


Derivatives not designated as Hedging Instruments	Location of Gain/(Loss) Recognized in Income on Derivatives	Amount of Gain/(Loss) Recognized in Income on Derivatives

		2012		2011
Foreign exchange contracts	Foreign exchange (loss)/gain	$	2,623	$	(3,713	)

The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the nine months ended September 30, 2012 and 2011:


Derivatives in Cash Flow Hedging Relationships	Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)					Location of (Loss)/Gain Reclassified from AOCI into Income (Effective Portion)	Amount of (Loss)/Gain Reclassified from AOCI into Income (Effective Portion)					Location of Gain/ (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	2012		2011				2012			2011			2012		2011
Foreign exchange contracts	$	4,859	$	(2,865	)	Foreign exchange (loss)/gain	$	(7,281	)	$	3,386	Foreign exchange (loss)/gain	$	—	$	—


Derivatives not designated as Hedging Instruments	Location of Gain/(Loss) Recognized in Income on Derivatives	Amount of Gain/(Loss) Recognized in Income on Derivatives
		2012		2011
Foreign exchange contracts	Foreign exchange (loss)/gain	$	2,925	$	(2,937	)

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959

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-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624177-113959

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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80784-113994

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-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959

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-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624258-113959

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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41635-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fixed Assets

9 Months Ended

Sep. 30, 2012

Fixed Assets [Abstract]

Fixed Assets

8. Fixed Assets

The components of fixed assets, net of accumulated depreciation, consisted of the following:


	September 30, 2012			December 31, 2011
Owned Assets:
Network equipment, computers and software	$	62,924		$	55,499
Buildings		1,505			1,498
Land		985			980
Leasehold improvements		24,403			21,733
Office furniture and equipment		10,598			9,011
Motor vehicles		699			828
Capital work in progress		2,023			2,737

		103,137			92,286
Less: Accumulated depreciation and amortization		(65,523	)		(54,736	)

	$	37,614		$	37,550

Assets under capital leases:
Network equipment, computers and software	$	377		$	474
Leasehold improvements		2,554			2,541
Office furniture and equipment		1,498			1,645
Motor vehicles		975			882

		5,404			5,542
Less: Accumulated depreciation and amortization		(1,864	)		(772	)

	$	3,540		$	4,770

Fixed assets, net	$	41,154		$	42,320

Depreciation and amortization expense excluding amortization of acquisition-related intangibles for the three months ended September 30, 2012 and 2011 was $5,009 and $5,048, respectively, and $14,649 and $13,462 for the nine months ended September 30, 2012 and 2011, respectively.

Capital work in progress represents advances paid toward acquisitions of fixed assets and the cost of fixed assets not yet ready to be placed in service.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Capital Structure

9 Months Ended

Sep. 30, 2012

Capital Structure [Abstract]

Capital Structure

9. Capital Structure

The Company has one class of common stock.

During the three months ended September 30, 2012 and 2011, the Company did not acquire any shares of common stock from employees in connection with withholding tax payments related to the vesting of restricted stock. During the three months ended September 30, 2011, the Company completed a public offering of its common stock. The Company sold 1,000,000 shares of its common stock and certain selling stockholders sold an aggregate of 3,000,000 shares of common stock at a price of $23.00 per share less underwriting discount. The Company received net proceeds of $21,573 from the offering.

During the nine months ended September 30, 2012 and 2011, the Company acquired 12,865 shares and 9,596 shares of common stock, respectively from employees in connection with withholding tax payments related to the vesting of restricted stock for a total consideration of $331 and $185, respectively.

During the nine months ended September 30, 2011, the Company also acquired 61,299 shares of common stock for a total consideration of $1,439 in pursuance of an option agreement between the Company and Prudential Financial, Inc. (“Prudential”) dated July 1, 2004. The purchase price of $23.47 per share was the average closing price for the 30-day period on the Nasdaq Global Select Market preceding the date of exercise of options by Prudential.

The shares acquired pursuant to the transactions discussed in this section are currently being held as treasury stock.

Employee Benefit Plans

9 Months Ended

Sep. 30, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans

10. Employee Benefit Plans

The Company’s Gratuity Plans in India and the Philippines provide a lump-sum payment to vested employees on retirement or on termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. Liabilities with regard to the Gratuity Plans are determined by actuarial valuation using the projected unit credit method. Current service costs for the Gratuity 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.

Net gratuity cost includes the following components:


	Three months ended September 30,					Nine months ended September 30,
	2012			2011		2012			2011
Service cost	$	230		$	297	$	793		$	686
Interest cost		101			62		312			190
Expected return on plan assets		(43	)		—		(104	)		—
Actuarial loss		30			26		94			79

Net gratuity cost	$	318		$	385	$	1,095		$	955

The Gratuity Plans in India are funded plans that are managed and administered by Life Insurance Corporation of India and HDFC Standard Life Insurance Company. They calculate the annual contribution required to be made by the Company and manage the Gratuity Plans, including any required payouts. Fund managers manage these funds on a cash accumulation basis and declare interest retrospectively on March 31 of each year. The Company expects the return on the Gratuity Plans to be approximately 9% per annum for the year ended March 31, 2013.

Change in Plan Assets


Plan assets at January 1, 2012	$	1,015
Employer contribution		1,169
Expected return		104
Effect of exchange rate changes		(35	)

Plan assets at September 30, 2012	$	2,253

The Company maintains the Exl Service Inc. 401(k) Plan under Section 401(k) of the Internal Revenue Code of 1986, covering all eligible employees, as defined. The Company may make discretionary contributions of up to a maximum of 3% of employee compensation within certain limits. The Company has made provisions for contributions to the 401(k) Plan amounting to $245 and $179 during the three month periods ended September 30, 2012 and September 30, 2011, respectively, and $925 and $525 during the nine month periods ended September 30, 2012 and September 30, 2011.

During the three and nine month periods ended September 30, 2012 and 2011, the Company contributed the following amounts to various defined contribution plans on behalf of its employees in India, the Philippines, Romania, Bulgaria, Malaysia and the Czech Republic:


Three months ended September 30, 2012	$	1,384
Three months ended September 30, 2011	$	1,426
Nine months ended September 30, 2012	$	4,227
Nine months ended September 30, 2011	$	3,676

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Leases

9 Months Ended

Sep. 30, 2012

Leases [Abstract]

Leases

11. Leases

The Company finances its use of certain facilities, computer hardware, leasehold improvements, furniture, fixtures, office equipment and motor vehicles under various lease arrangements provided by financial institutions. Future minimum lease payments under these capital leases as of September 30, 2012 are as follows:


Year ending September 30,
2013	$	2,133
2014		1,664
2015		1,245
2016		600
2017		23

Total minimum lease payments		5,665
Less: amount representing interest		772

Present value of minimum lease payments		4,893
Less: current portion		1,741

Long term capital lease obligation	$	3,152

The Company conducts its operations using facilities leased under non-cancelable operating lease agreements that expire at various dates. Future minimum lease payments under non-cancelable operating lease agreements expiring after more than twelve months are as follows:


Year ending September 30,
2013	$	8,140
2014		6,794
2015		5,685
2016		3,522
2017		860
Thereafter		1,290

	$	26,291

The operating leases are subject to renewal periodically and have scheduled rent increases. The Company accounts for scheduled rent on a straight-line basis over the lease period. Rent expense under both cancellable and non-cancellable operating leases was $4,341 and $4,050 for the three months ended September 30, 2012 and 2011, respectively, and $13,325 and $10,253 for the nine months ended September 30, 2012 and 2011, respectively. Deferred rent as of September 30, 2012 and December 31, 2011 was $4,670 and $3,815, respectively, and is included in the unaudited consolidated balance sheets under “Accrued expenses and other current liabilities” and “Non-current liabilities.”

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References + Details

Income Taxes

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

12. Income Taxes

The Company recorded income tax expense of $4,329 and $4,138 for the three months ended September 30, 2012 and 2011, respectively, and $10,975 and $8,639 for the nine months ended September 30, 2012 and 2011, respectively. The effective rate of taxes decreased from 33.0% during the three months ended September 30, 2011 to 27.0% during the three months ended September 30, 2012. The decrease in the effective tax rate was primarily due to the higher taxable income in the U.S. and non-deductible acquisition related expenses in the three months ended September 30, 2011. The effective rate of taxes increased from 25.5% during the nine months ended September 30, 2011 to 27.0% during the nine months ended September 30, 2012. The increase in the effective tax rate was primarily due to the expiry of a tax holiday period for most of the Company’s operating units in India that ended on April 1, 2011, completion of the first five years of operations in certain operating units that were located in special economic zones (“SEZs”) in India after which the company is entitled to a 50% exemption from profits and release of a valuation allowance on deferred tax assets of $1,961 during the three months ended March 31, 2011.

The Company did benefit from a four-year income tax holiday for one of its operations centers in the Philippines that expired in the middle of 2012. The tax holiday, however, can be extended for an additional two years. The Company has applied for an extension of the tax holiday, which, if granted, would be effective retrospectively from the date of expiration of four years. The Company’s new operations center in the Philippines, which began operations in January 2012, also benefits from a separate four-year income tax holiday that can be extended for an additional two years. While the Company is reasonably certain that the Philippines Economic Zone Authority will extend these tax holidays, it is possible that such extension requests may be denied, or that these tax holidays may be conditioned or removed entirely due to changes in applicable legislation by the government of the Philippines. Should any of these events occur, the Company’s tax liability in the Philippines would likely increase.

The Company’s operations centers in Jaipur and Noida, India, which were established in SEZs in 2010, are eligible for tax incentives until 2020. As part of the OPI Acquisition, the Company also acquired operations centers in Bengaluru and Kochi, India that are also located in SEZs. The operations center in Bengaluru completed its first five years of operations on March 31, 2012. Under the tax regulations, the Bengaluru operations center is entitled to a 50% tax exemption on export profits for five years from April 1, 2012, after which there could be further increase in the tax expense for the center unless such profit is re-invested for the specified purposes under the tax laws. The Company also established a new operations center in Pune, India in June 2012, which is located in an SEZ. The Company anticipates establishing additional operations centers in SEZs in the future.

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. At September 30, 2012, the Company performed an analysis of the deferred tax asset valuation allowance for net operating loss carry forward for its domestic entities. Based on this analysis, the Company continues to carry a valuation allowance on the deferred tax assets on net operating loss carry forwards. The valuation allowance was approximately $919 as of both September 30, 2012 and December 31, 2011.

As a result of the OPI Acquisition, the Company acquired OPI’s federal and state net operating losses in the United States. Thus, as of September 30, 2012, the Company has federal net operating loss carry forwards of approximately $18,920, which expire in 2027. The Company’s federal net operating loss carry forwards are subject to certain annual utilization limitations under Section 382 of the United States Internal Revenue Code. The Company also has state and local net operating loss carry forwards of varying amounts, which are subject to limitations under the applicable rules and regulations of those taxing jurisdictions. The Company estimates that it will be able to utilize all of the losses before their expiration.

During 2007, the Indian government passed tax legislation that, among other items, subjects Indian taxpayers to a Minimum Alternative Tax (“MAT”). As of September 30, 2012 and December 31, 2011, deferred income taxes related to the MAT were approximately $2,883 and $2,793, respectively.

The Company’s provision for income taxes also includes the impact of provisions established for uncertain income tax positions determined in accordance with ASC No. 740, “Income Taxes,” as well as the related net interest. 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 provision for income taxes in the period in which such determination is made.

The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2012 through September 30, 2012:


Balance as of January 1, 2012	$	5,324
Increases related to prior year tax positions		—
Decreases related to prior year tax positions		(2,245	)
Increases related to current year tax positions		339
Decreases related to current year tax positions		(339	)
Effect of exchange rate changes		22

Balance as of September 30, 2012	$	3,101

The unrecognized tax benefits as of September 30, 2012 of $3,101, if recognized, would impact the effective tax rate.

The Company has recognized interest and penalties of ($283) and ($37) during the three and nine months ended September 30, 2012, respectively. The unrecognized tax benefits may increase or decrease in the next twelve months depending on the Company’s tax positions.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

13. Stock-Based Compensation

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


	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Cost of revenue	$	330	$	343	$	1,571	$	1,320
General and administrative expenses		867		1,090		3,472		3,444
Selling and marketing expenses		674		727		2,286		2,523

Total	$	1,871	$	2,160	$	7,329	$	7,287

The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:


	Three months ended September 30,					Nine months ended September 30,
	2012		2011			2012			2011
Dividend yield		—		0	%		0	%		0	%
Expected life (years)		—		4.50			5.38			5.63
Risk free interest rate		—		1.41	%		0.97	%		2.23	%
Volatility		—		40	%		40	%		40	%

The estimated expected term of options granted has been based on historical experience since October 2006, which is representative of the expected term of the options. Volatility has been calculated based on the volatility of the Company’s common stock and the volatility of stock of comparative companies. The risk-free interest rate that the Company uses in the option valuation model is based on U.S. treasury zero-coupon bonds with a remaining term similar to the expected term of the options.

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. The Company is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. All stock-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods.

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


	Number of Options			Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Life (Years)
Outstanding at December 31, 2011		3,030,128		$	13.22	$	28,318		6.79
Granted		416,129			25.36
Exercised		(728,530	)		12.17
Forfeited		(196,020	)		17.50

Outstanding at September 30, 2012		2,521,707		$	15.19	$	36,092		6.60

Vested and exercisable at September 30, 2012		1,323,562		$	13.18	$	21,603		5.57

Available for grant at September 30, 2012		2,246,314

The unrecognized compensation cost for unvested options as of September 30, 2012 was $5,898, which is expected to be expensed over a weighted average period of 2.55 years. The Company did not grant any options during the three months ended September 30, 2012. The weighted-average fair value of options granted during the nine months ended September 30, 2012 and 2011 was $9.43 and $8.15, respectively. The total fair value of shares vested during the three months ended September 30, 2012 and 2011 was $409 and $467, respectively. The total fair value of shares vested during the nine months ended September 30, 2012 and 2011 was $2,757 and $2,603, respectively.

Restricted Stock and Restricted Stock Units

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


	Restricted Stock					Restricted Stock Units
	Number			Weighted- Average Intrinsic Value		Number			Weighted- Average Intrinsic Value
Outstanding at December 31, 2011		63,834		$	18.41		939,659		$	19.40
Granted		—			—		353,050			24.82
Vested		(52,126	)		18.29		(189,442	)		19.11
Forfeited		(2,901	)		23.82		(87,202	)		20.89

Outstanding at September 30, 2012		8,807		$	17.64		1,016,065		$	21.22

As of September 30, 2012, unrecognized compensation cost of $16,847 is expected to be expensed over a weighted average period of 2.47 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Geographical Information

9 Months Ended

Sep. 30, 2012

Geographical Information [Abstract]

Geographical Information

14. Geographical Information


	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Revenues
United States	$	80,949	$	71,503	$	234,514	$	184,981
United Kingdom		23,061		20,983		66,046		59,097
Rest of World		8,629		7,540		24,717		13,883

	$	112,639	$	100,026	$	325,277	$	257,961


	September 30, 2012		December 31, 2011
Fixed assets, net
India	$	32,942	$	35,787
United States		2,597		1,408
Philippines		4,612		3,946
Rest of World		1,003		1,179

	$	41,154	$	42,320

Commitments and Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

15. Commitments and Contingencies

Fixed Asset Commitments

As of September 30, 2012, the Company had committed to spend approximately $1,129 under agreements to purchase fixed assets. This amount is net of advances paid in respect of these purchases.

Other Commitments

Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units under the Software Technology Parks of India (“STPI”) scheme promulgated by the Government of India which provided the Company with certain incentives on imported and indigenous capital goods on fulfillment of certain conditions. Although the corporate tax incentives under the STPI scheme are no longer available to the company, the units are required to fulfill such conditions for a limited time. In the event that these units are unable to meet the prescribed conditions over the specified period, the Company may be required to refund those incentives along with penalties and fines. The Company’s management believes, however, that these units have in the past satisfied and will continue to satisfy the required conditions.

ExlService Philippines, Inc. (“Exl Philippines”) is registered as an Ecozone IT Enterprise with the Philippines Economic Zone Authority. The registration provides the Company with certain incentives on the import of capital goods and requires Exl Philippines to meet certain export obligations. The Company benefited from a four-year income tax holiday for one of its operations centers in the Philippines that expired in the middle of 2012. The tax holiday, however, can be extended for an additional two years. The Company has applied for an extension of the tax holiday, which, if granted, will be effective retrospectively from the date of expiration of four years. The Company’s new operations center in the Philippines, which began operations in January 2012, also benefits from a separate four-year income tax holiday that can be extended for an additional two years.

Contingencies

U.S. and Indian transfer pricing regulations require that any international transaction involving associated enterprises be at an arm’s-length price. Transactions among the Company’s subsidiaries and the Company may be required to satisfy such requirements. Accordingly, the Company determines the pricing among its associated enterprises on the basis of detailed functional and economic analysis involving benchmarking against transactions among entities that are not under common control. The tax authorities have jurisdiction to review this arrangement and in the event that they determine that the transfer price applied was not appropriate, the Company may incur increased tax liability, including accrued interest and penalties. The Company is currently involved in disputes with the Indian tax authorities over the application of some of its transfer pricing policies. The Company has received a number of assessment orders from the Indian tax authorities with respect to their audit of certain of the Company’s subsidiaries. The Indian tax authorities are examining income tax returns for other tax years.

The details of the assessment orders, as well as amounts deposited or bank guarantees provided by the Company as of September 30, 2012 are set forth below:


Entity	Tax Year	Issue	Amount Demanded (Including Interest)		Amount Deposited (Including additional Interest)		Bank Guarantee Issued (Including additional Interest)
Exl India	2003-04	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. in the 2003-04 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.	$	1,839	$	1,839	$	—
Exl India	2004-05	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2004-05 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.		1,783		1,783		—
Exl India	2005-06	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2005-06 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.		3,439		3,439		—
Exl India	2006-07	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2006-07 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.		3,422		2,820		—
Exl India	2007-08	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2007-08 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.		3,964		946		—
Exl Inc.	2003-04	The assessment order alleges that EXL Inc. has a permanent establishment in India.		2,775		1,325		2,071
Exl Inc.	2004-05	The assessment order alleges that EXL Inc. has a permanent establishment in India.		89		38		49
Exl Inc.	2005-06	The assessment order alleges that EXL Inc. has a permanent establishment in India.		659		341		386
Exl Inc.	2006-07	The assessment order alleges that EXL Inc. has a permanent establishment in India.		1,130		—		—
BPO India	2004-05	The assessment order alleges the transfer price we applied to transactions between OPI India and OPI Inc., for the 2004-05 tax year was not appropriate and proposes certain adjustments to the methodology for computing the amount of the tax exemption.		135		135		—
BPO India	2008-09	The assessment order proposes certain adjustments to the methodology for computing the amount of the tax exemption.		69		69		—
OPI India	2008-09	The assessment order proposes certain adjustments to the methodology for computing the amount of the tax exemption.		72		70		—

			$	19,376	$	12,805	$	2,506

Based on advice from its Indian tax advisors, the facts underlying its position and its experience with these types of assessments, the Company believes that the probability of loss is remote and accordingly has not accrued any amount with respect to these matters in its unaudited consolidated financial statements. The Company does not expect any impact from these assessments on its future income tax expense. There is a likelihood that the Company might receive similar orders for subsequent years until the above disputes are resolved.

Amounts paid as deposits in respect of the assessments described above aggregating to $12,805 and $11,662 as of September 30, 2012 and December 31, 2011, respectively, are included in “Other assets” and amounts deposited for bank guarantees aggregating to $2,506 as of September 30, 2012 and $2,494 as of December 31, 2011, respectively, are included in “Restricted cash non-current” in the Company’s unaudited consolidated balance sheet as of September 30, 2012 and the audited consolidated balance sheet as of December 31, 2011.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

16. Subsequent Events

On October 12, 2012, the Company acquired Landacorp, Inc. (“Landacorp”), a leading provider of healthcare solutions and technology. Landacorp has more than 50 million members under management on its platforms and has developed services and technology solutions that share vital clinical data with payers, providers, plan participants and accountable care organizations (ACOs). The aggregate consideration paid for all the outstanding capital stock of Landacorp was $37,500 in cash, subject to final working capital adjustments.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2012
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	*Basis of Presentation* The unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011. The unaudited interim consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period.
Principles of Consolidation	*Principles of Consolidation* The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The non-controlling interest represents the minority partner’s interest in the operation of exl Service.com (India) Private Limited (“Exl India”) and the profits associated with the minority partner’s interest in those operations, in the unaudited consolidated balance sheet and unaudited consolidated statement of income, respectively. This non-controlling interest in these operations for the three and nine months ended September 30, 2012 and 2011 was insignificant and is included under general and administrative expenses in the unaudited consolidated statements of income.
Use of Estimates	*Use of Estimates* The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Estimates are based upon management’s best assessment of the current business environment. Actual results could differ from those estimates. The significant estimates and assumptions that affect the financial statements include, but are not limited to, allowance for doubtful receivables, service tax receivables, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based compensation expense, depreciation and amortization periods, recoverability of long-term assets including goodwill and intangibles and estimates to complete fixed price contracts.
Recent Accounting Pronouncements	*Recent Accounting Pronouncements* In May 2011, the Financial Accounting Standards Board (“FASB”) issued update No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS” (ASU No. 2011-04). ASU No. 2011-04 is intended to improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with GAAP and International Financial Reporting Standards (“IFRS”). ASU No. 2011-04 explains how to measure fair value and does not require additional measurements. Accordingly, the adoption of this accounting pronouncement from January 1, 2012 did not have an impact on the Company’s unaudited consolidated financial statements. In June 2011, the FASB issued update No. 2011-05, “Presentation of Comprehensive Income” (ASU No. 2011-05). ASU No. 2011-05, effective retrospectively for the interim and annual periods beginning on or after December 15, 2011 (early adoption is permitted), requires presentation of total comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The Company adopted the option of presentation in two separate but consecutive statements. Refer to the Company’s unaudited consolidated statements of comprehensive income/(loss) for further details. In December 2011, the FASB issued update No. 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards” (ASU No. 2011-12), which deferred the requirement to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for annual and interim financial statements. The adoption of this accounting pronouncement from January 1, 2012 did not have any impact on the Company’s unaudited consolidated financial statements. In September 2011, the FASB issued update No. 2011-08, “Testing Goodwill for Impairment” (ASU No. 2011-08), which permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If an entity concludes that the fair value of a reporting unit is less than its carrying value, it is necessary to perform a two-step goodwill impairment test. ASU No. 2011-08 became effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of this accounting pronouncement did not have a material impact on the Company’s unaudited consolidated financial statements and the Company does not expect this to have a material impact on its annual goodwill impairment assessment in the fourth quarter of fiscal 2012. In July 2012, the FASB issued update No. 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment” (ASU No. 2012-02), which simplifies the guidance for testing the impairment of indefinite-lived intangible assets other than goodwill. Examples of intangible assets subject to the guidance include indefinite-lived trademarks, licenses, and distribution rights. The amendment provides the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. Under the option, an entity is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This amendment is effective for fiscal years beginning after September 15, 2012, with early adoption permitted. The Company does not expect the new guidance to have an impact on its 2013 impairment test results.

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 40
-Section 45
-URI http://asc.fasb.org/section&trid=2197723

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2196966

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 325
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=2197087

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.3A-02)
-URI http://asc.fasb.org/extlink&oid=6959686&loc=d3e355033-122828

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=16385135&loc=d3e33801-111570

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 5, 6, 16-19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 96-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 20
-Subparagraph a(2)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 97-2
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph k
-Article 1

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02, 03
-Article 3A

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Summary of accrued expenses and other current liabilities

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:


	September 30, 2012		December 31, 2011
Accrued expenses	$	17,569	$	15,572
Derivative instruments		4,846		9,170
Other current liabilities		4,266		5,958

Accrued expenses and other current liabilities	$	26,681	$	30,700

Summary of non-current liabilities

Non-current liabilities

Non-current liabilities consist of the following:


	September 30, 2012		December 31, 2011
Derivative instruments	$	3,642	$	8,559
Unrecognized tax benefits		2,726		4,981
Deferred rent		4,310		3,319
Retirement benefits		2,424		3,068
Other non-current liabilities		1,237		2,531

Non-current liabilities	$	14,339	$	22,458

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per share

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


	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Numerators:
Net income	$	11,703	$	8,391	$	29,673	$	25,226
Denominators:
Basic weighted average common shares outstanding		32,154,001		30,293,114		31,857,909		29,926,846
Dilutive effect of share based awards		1,129,853		1,293,822		1,197,948		1,204,667

Diluted weighted average common shares outstanding		33,283,854		31,586,936		33,055,857		31,131,513

Earnings per share:
Basic	$	0.36	$	0.28	$	0.93	$	0.84
Diluted	$	0.35	$	0.27	$	0.90	$	0.81
Weighted average common shares considered anti-dilutive in computing diluted earnings per share		412,873		316,675		430,309		458,113

Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

Segment Information [Abstract]

Revenues and cost of revenues for Company's outsourcing services and transformation services segments


	Three months ended September 30, 2012							Three months ended September 30, 2011
	Outsourcing Services		Transformation Services		Total			Outsourcing Services		Transformation Services		Total
Revenues	$	91,984	$	20,655	$	112,639		$	83,176	$	16,850	$	100,026
Cost of revenues (exclusive of depreciation and amortization)		55,658		12,992		68,650			50,961		10,794		61,755

Gross profit	$	36,326	$	7,663	$	43,989		$	32,215	$	6,056	$	38,271

Operating expenses						27,119							26,611
Other income, net						(838	)						869
Income tax provision						4,329							4,138

Net income					$	11,703						$	8,391


	Nine months ended September 30, 2012							Nine months ended September 30, 2011
	Outsourcing Services		Transformation Services		Total			Outsourcing Services		Transformation Services		Total
Revenues	$	270,640	$	54,637	$	325,277		$	208,751	$	49,210	$	257,961
Cost of revenues (exclusive of depreciation and amortization)		166,637		34,730		201,367			126,532		31,439		157,971

Gross profit	$	104,003	$	19,907	$	123,910		$	82,219	$	17,771	$	99,990

Operating expenses						82,216							71,414
Other income, net						(1,046	)						5,289
Income tax provision						10,975							8,639

Net income					$	29,673						$	25,226

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Business Combinations, Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2012

Business Combinations, Goodwill and Intangible Assets [Abstract]

Summary of Company's goodwill

Goodwill

The following table sets forth details of the Company’s goodwill balance as of September 30, 2012:


	Outsourcing Services			Transformation Services		Total
Balance at January 1, 2011	$	26,585		$	16,785	$	43,370
Goodwill arising from OPI acquisition		54,604			—		54,604
Currency translation adjustments		(5,687	)		—		(5,687	)

Balance at December 31, 2011	$	75,502		$	16,785	$	92,287
Purchase accounting adjustments ⁽¹⁾		422			—		422
Currency translation adjustments		177			—		177

Balance at September 30, 2012	$	76,101		$	16,785	$	92,886

(1)	Relates to the acquisition of Business Process Outsourcing, Inc. (“OPI”) on May 31, 2011 (the “OPI Acquisition”).

Summary of Company's intangible assets

Intangible Assets

Information regarding the Company’s intangible assets is as follows:


	As of September 30, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	33,105	$	(6,894	)	$	26,211
Leasehold benefits		3,491		(1,115	)		2,376
Developed technology		2,133		(513	)		1,620
Non-compete agreements		1,317		(1,195	)		122
Trade names and trademarks		2,722		(804	)		1,918

	$	42,768	$	(10,521	)	$	32,247


	As of December 31, 2011
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	33,100	$	(4,456	)	$	28,644
Leasehold benefits		3,474		(668	)		2,806
Developed technology		2,133		(351	)		1,782
Non-compete agreements		1,316		(606	)		710
Trade names and trademarks		2,722		(351	)		2,371

	$	42,745	$	(6,432	)	$	36,313

Estimated amortization of intangible assets


Estimated amortization of intangible assets during the year ending September 30,
2013	$	4,607
2014	$	4,111
2015	$	3,711
2016	$	3,711
2017	$	3,702

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References + Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Measurements [Abstract]

Assets and Liabilities Measured at Fair Value

Assets and Liabilities Measured at Fair Value


As of September 30, 2012	Level 1		Level 2		Level 3		Total
Assets
Money market and mutual funds	$	83,225	$	—	$	—	$	83,225
Derivative financial instruments		—		2,759		—		2,759

Total	$	83,225	$	2,759	$	—	$	85,984

Liabilities
Derivative financial instruments	$	—	$	8,488	$	—	$	8,488

Total	$	—	$	8,488	$	—	$	8,488


As of December 31, 2011	Level 1		Level 2		Level 3		Total
Assets
Money market and mutual funds	$	42,067	$	—	$	—	$	42,067
Derivative financial instruments		—		32		—		32

Total	$	42,067	$	32	$	—	$	42,099

Liabilities
Derivative financial instruments	$	—	$	17,729	$	—	$	17,729

Total	$	—	$	17,729	$	—	$	17,729

Derivatives and Hedge Accounting (Tables)

9 Months Ended

Sep. 30, 2012

Derivatives and Hedge Accounting [Abstract]

Summary of fair value of the foreign currency exchange contracts

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

Derivatives designated as hedging instruments


	September 30, 2012		December 31, 2011
Other current assets:
Foreign currency exchange contracts	$	1,409	$	—
Other assets:
Foreign currency exchange contracts	$	1,350	$	—
Accrued expenses and other current liabilities:
Foreign currency exchange contracts	$	4,706	$	9,170
Other non-current liabilities:
Foreign currency exchange contracts	$	3,642	$	8,559

Derivatives not designated as hedging instruments:


	September 30, 2012		December 31, 2011
Other current assets:
Foreign currency exchange contracts	$	—	$	32
Accrued expenses and other current liabilities:
Foreign currency exchange contracts	$	140	$	—

Summary of effect of foreign currency exchange contracts on the unaudited consolidated statements of income

The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the three months ended September 30, 2012 and 2011:


Derivatives in Cash Flow Hedging Relationships	Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)					Location of (Loss)/Gain Reclassified from AOCI into Income (Effective Portion)	Amount of (Loss)/Gain Reclassified from AOCI into Income (Effective Portion)					Location of Gain/ (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	2012		2011				2012			2011			2012		2011
Foreign exchange contracts	$	9,980	$	(5,835	)	Foreign exchange (loss)/gain	$	(2,018	)	$	656	Foreign exchange (loss)/gain	$	—	$	—


Derivatives not designated as Hedging Instruments	Location of Gain/(Loss) Recognized in Income on Derivatives	Amount of Gain/(Loss) Recognized in Income on Derivatives

		2012		2011
Foreign exchange contracts	Foreign exchange (loss)/gain	$	2,623	$	(3,713	)

The following tables set forth the effect of foreign currency exchange contracts on the unaudited consolidated statements of income for the nine months ended September 30, 2012 and 2011:


Derivatives in Cash Flow Hedging Relationships	Amount of Gain/(Loss) Recognized in AOCI on Derivative (Effective Portion)					Location of (Loss)/Gain Reclassified from AOCI into Income (Effective Portion)	Amount of (Loss)/Gain Reclassified from AOCI into Income (Effective Portion)					Location of Gain/ (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	2012		2011				2012			2011			2012		2011
Foreign exchange contracts	$	4,859	$	(2,865	)	Foreign exchange (loss)/gain	$	(7,281	)	$	3,386	Foreign exchange (loss)/gain	$	—	$	—


Derivatives not designated as Hedging Instruments	Location of Gain/(Loss) Recognized in Income on Derivatives	Amount of Gain/(Loss) Recognized in Income on Derivatives
		2012		2011
Foreign exchange contracts	Foreign exchange (loss)/gain	$	2,925	$	(2,937	)

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References + Details

Fixed Assets (Tables)

9 Months Ended

Sep. 30, 2012

Fixed Assets [Abstract]

Components of fixed assets, net of accumulated depreciation

The components of fixed assets, net of accumulated depreciation, consisted of the following:


	September 30, 2012			December 31, 2011
Owned Assets:
Network equipment, computers and software	$	62,924		$	55,499
Buildings		1,505			1,498
Land		985			980
Leasehold improvements		24,403			21,733
Office furniture and equipment		10,598			9,011
Motor vehicles		699			828
Capital work in progress		2,023			2,737

		103,137			92,286
Less: Accumulated depreciation and amortization		(65,523	)		(54,736	)

	$	37,614		$	37,550

Assets under capital leases:
Network equipment, computers and software	$	377		$	474
Leasehold improvements		2,554			2,541
Office furniture and equipment		1,498			1,645
Motor vehicles		975			882

		5,404			5,542
Less: Accumulated depreciation and amortization		(1,864	)		(772	)

	$	3,540		$	4,770

Fixed assets, net	$	41,154		$	42,320

Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2012

Employee Benefit Plans [Abstract]

Net gratuity cost

Net gratuity cost includes the following components:


	Three months ended September 30,					Nine months ended September 30,
	2012			2011		2012			2011
Service cost	$	230		$	297	$	793		$	686
Interest cost		101			62		312			190
Expected return on plan assets		(43	)		—		(104	)		—
Actuarial loss		30			26		94			79

Net gratuity cost	$	318		$	385	$	1,095		$	955

Change in Plan Assets

Change in Plan Assets


Plan assets at January 1, 2012	$	1,015
Employer contribution		1,169
Expected return		104
Effect of exchange rate changes		(35	)

Plan assets at September 30, 2012	$	2,253

Contribution to various defined contribution plans


Three months ended September 30, 2012	$	1,384
Three months ended September 30, 2011	$	1,426
Nine months ended September 30, 2012	$	4,227
Nine months ended September 30, 2011	$	3,676

Leases (Tables)

9 Months Ended

Sep. 30, 2012

Leases [Abstract]

Future minimum lease payments under capital leases

Future minimum lease payments under these capital leases as of September 30, 2012 are as follows:


Year ending September 30,
2013	$	2,133
2014		1,664
2015		1,245
2016		600
2017		23

Total minimum lease payments		5,665
Less: amount representing interest		772

Present value of minimum lease payments		4,893
Less: current portion		1,741

Long term capital lease obligation	$	3,152

Future minimum lease payments under non-cancelable operating lease agreements expiring after more than twelve months


Year ending September 30,
2013	$	8,140
2014		6,794
2015		5,685
2016		3,522
2017		860
Thereafter		1,290

	$	26,291

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Summary of activity related to the gross unrecognized tax benefits

The following table summarizes the activity related to the gross unrecognized tax benefits from January 1, 2012 through September 30, 2012:


Balance as of January 1, 2012	$	5,324
Increases related to prior year tax positions		—
Decreases related to prior year tax positions		(2,245	)
Increases related to current year tax positions		339
Decreases related to current year tax positions		(339	)
Effect of exchange rate changes		22

Balance as of September 30, 2012	$	3,101

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation [Abstract]

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


	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Cost of revenue	$	330	$	343	$	1,571	$	1,320
General and administrative expenses		867		1,090		3,472		3,444
Selling and marketing expenses		674		727		2,286		2,523

Total	$	1,871	$	2,160	$	7,329	$	7,287

Fair value of each stock option granted to employees

The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:


	Three months ended September 30,					Nine months ended September 30,
	2012		2011			2012			2011
Dividend yield		—		0	%		0	%		0	%
Expected life (years)		—		4.50			5.38			5.63
Risk free interest rate		—		1.41	%		0.97	%		2.23	%
Volatility		—		40	%		40	%		40	%

Share based compensation stock options activity

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


	Number of Options			Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Life (Years)
Outstanding at December 31, 2011		3,030,128		$	13.22	$	28,318		6.79
Granted		416,129			25.36
Exercised		(728,530	)		12.17
Forfeited		(196,020	)		17.50

Outstanding at September 30, 2012		2,521,707		$	15.19	$	36,092		6.60

Vested and exercisable at September 30, 2012		1,323,562		$	13.18	$	21,603		5.57

Available for grant at September 30, 2012		2,246,314

Restricted stock and restricted stock unit activity

Restricted Stock and Restricted Stock Units

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


	Restricted Stock					Restricted Stock Units
	Number			Weighted- Average Intrinsic Value		Number			Weighted- Average Intrinsic Value
Outstanding at December 31, 2011		63,834		$	18.41		939,659		$	19.40
Granted		—			—		353,050			24.82
Vested		(52,126	)		18.29		(189,442	)		19.11
Forfeited		(2,901	)		23.82		(87,202	)		20.89

Outstanding at September 30, 2012		8,807		$	17.64		1,016,065		$	21.22

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References + Details

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14217-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (c)(2),(d),(e)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a),(c)(1),(d)(1)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph c(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 22
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph d(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph d, e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph c(2)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Geographical Information (Tables)

9 Months Ended

Sep. 30, 2012

Geographical Information [Abstract]

Geographical Information


	Three months ended September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Revenues
United States	$	80,949	$	71,503	$	234,514	$	184,981
United Kingdom		23,061		20,983		66,046		59,097
Rest of World		8,629		7,540		24,717		13,883

	$	112,639	$	100,026	$	325,277	$	257,961


	September 30, 2012		December 31, 2011
Fixed assets, net
India	$	32,942	$	35,787
United States		2,597		1,408
Philippines		4,612		3,946
Rest of World		1,003		1,179

	$	41,154	$	42,320

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies [Abstract]

Assessment orders details

The details of the assessment orders, as well as amounts deposited or bank guarantees provided by the Company as of September 30, 2012 are set forth below:


Entity	Tax Year	Issue	Amount Demanded (Including Interest)		Amount Deposited (Including additional Interest)		Bank Guarantee Issued (Including additional Interest)
Exl India	2003-04	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. in the 2003-04 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.	$	1,839	$	1,839	$	—
Exl India	2004-05	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2004-05 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.		1,783		1,783		—
Exl India	2005-06	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2005-06 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.		3,439		3,439		—
Exl India	2006-07	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2006-07 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.		3,422		2,820		—
Exl India	2007-08	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2007-08 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.		3,964		946		—
Exl Inc.	2003-04	The assessment order alleges that EXL Inc. has a permanent establishment in India.		2,775		1,325		2,071
Exl Inc.	2004-05	The assessment order alleges that EXL Inc. has a permanent establishment in India.		89		38		49
Exl Inc.	2005-06	The assessment order alleges that EXL Inc. has a permanent establishment in India.		659		341		386
Exl Inc.	2006-07	The assessment order alleges that EXL Inc. has a permanent establishment in India.		1,130		—		—
BPO India	2004-05	The assessment order alleges the transfer price we applied to transactions between OPI India and OPI Inc., for the 2004-05 tax year was not appropriate and proposes certain adjustments to the methodology for computing the amount of the tax exemption.		135		135		—
BPO India	2008-09	The assessment order proposes certain adjustments to the methodology for computing the amount of the tax exemption.		69		69		—
OPI India	2008-09	The assessment order proposes certain adjustments to the methodology for computing the amount of the tax exemption.		72		70		—

			$	19,376	$	12,805	$	2,506

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Summary of accrued expenses and other current liabilities
Accrued expenses	$ 17,569	$ 15,572
Derivative instruments	4,846	9,170
Other current liabilities	4,266	5,958
Accrued expenses and other current liabilities	$ 26,681	$ 30,700

- Definition

Aggregate carrying amount of current liabilities (due within one year or within the normal operating cycle if longer) not separately disclosed in the balance sheet. Includes costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered and of liabilities not separately disclosed.

+ References + Details

Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Summary of non-current liabilities
Derivative instruments	$ 3,642	$ 8,559
Unrecognized tax benefits	2,726	4,981
Deferred rent	4,310	3,319
Retirement benefits	2,424	3,068
Other non-current liabilities	1,237	2,531
Non-current liabilities	$ 14,339	$ 22,458

- Definition

For a classified balance sheet, the cumulative difference between the rental income or payments required by a lease agreement and the rental income or expense recognized on a straight-line basis, or other systematic and rational basis more representative of the time pattern in which use or benefit is granted or derived from the leased property, expected to be recognized in income or expense, by the lessor or lessee, respectively, more than one year after the balance sheet date.

+ References + Details

- Definition

This represents the noncurrent liability for underfunded plans recognized in the balance sheet that is associated with the defined benefit pension plans and other postretirement defined benefit plans.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2417-114920

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915240&loc=d3e1703-114919

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2410-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.24)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Numerators:
Net income	$ 11,703	$ 8,391	$ 29,673	$ 25,226
Denominators:
Basic weighted average common shares outstanding	32,154,001	30,293,114	31,857,909	29,926,846
Dilutive effect of share based awards	1,129,853	1,293,822	1,197,948	1,204,667
Diluted weighted average common shares outstanding	33,283,854	31,586,936	33,055,857	31,131,513
Earnings per share:
Basic	$ 0.36	$ 0.28	$ 0.93	$ 0.84
Diluted	$ 0.35	$ 0.27	$ 0.90	$ 0.81
Weighted average common shares considered anti-dilutive in computing diluted earnings per share	412,873	316,675	430,309	458,113

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues and cost of revenues for Company's outsourcing services and transformation services segments
Revenues	$ 112,639	$ 100,026	$ 325,277	$ 257,961
Cost of revenues (exclusive of depreciation and amortization)	68,650	61,755	201,367	157,971
Gross profit	43,989	38,271	123,910	99,990
Operating expenses	27,119	26,611	82,216	71,414
Other income, net	(838)	869	(1,046)	5,289
Income tax provision	4,329	4,138	10,975	8,639
Net income	11,703	8,391	29,673	25,226
Outsourcing Services [Member]
Revenues and cost of revenues for Company's outsourcing services and transformation services segments
Revenues	91,984	83,176	270,640	208,751
Cost of revenues (exclusive of depreciation and amortization)	55,658	50,961	166,637	126,532
Gross profit	36,326	32,215	104,003	82,219
Transformation Services [Member]
Revenues and cost of revenues for Company's outsourcing services and transformation services segments
Revenues	20,655	16,850	54,637	49,210
Cost of revenues (exclusive of depreciation and amortization)	12,992	10,794	34,730	31,439
Gross profit	$ 7,663	$ 6,056	$ 19,907	$ 17,771

Business Combinations, Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Summary of the Company's goodwill
Beginning Balance	$ 92,287	$ 43,370
Goodwill arising from OPI Acquisition		54,604
Purchase accounting adjustments	422
Currency translation adjustments	177	(5,687)
Balance at September 30, 2012	92,886	92,287
Outsourcing Services [Member]
Summary of the Company's goodwill
Beginning Balance	75,502	26,585
Goodwill arising from OPI Acquisition		54,604
Purchase accounting adjustments	422
Currency translation adjustments	177	(5,687)
Balance at September 30, 2012	76,101	75,502
Transformation Services [Member]
Summary of the Company's goodwill
Beginning Balance	16,785	16,785
Balance at September 30, 2012	$ 16,785	$ 16,785

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Business Combinations, Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Summary of the Company's intangible assets
Gross Carrying Amount	$ 42,768	$ 42,745
Accumulated Amortization	(10,521)	(6,432)
Net Carrying Amount	32,247	36,313
Customer relationships [Member]
Summary of the Company's intangible assets
Gross Carrying Amount	33,105	33,100
Accumulated Amortization	(6,894)	(4,456)
Net Carrying Amount	26,211	28,644
Leasehold benefits [Member]
Summary of the Company's intangible assets
Gross Carrying Amount	3,491	3,474
Accumulated Amortization	(1,115)	(668)
Net Carrying Amount	2,376	2,806
Developed technology [Member]
Summary of the Company's intangible assets
Gross Carrying Amount	2,133	2,133
Accumulated Amortization	(513)	(351)
Net Carrying Amount	1,620	1,782
Non-compete agreements [Member]
Summary of the Company's intangible assets
Gross Carrying Amount	1,317	1,316
Accumulated Amortization	(1,195)	(606)
Net Carrying Amount	122	710
Trade names and trademarks [Member]
Summary of the Company's intangible assets
Gross Carrying Amount	2,722	2,722
Accumulated Amortization	(804)	(351)
Net Carrying Amount	$ 1,918	$ 2,371

Business Combinations, Goodwill and Intangible Assets (Details 2) $ in Thousands	Sep. 30, 2012 USD ($)
Estimated amortization of intangible assets
2013	$ 4,607
2014	4,111
2015	3,711
2016	3,711
2017	$ 3,702

Business Combinations, Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Business Combinations Goodwill and Intangible Assets (Additional Textual) [Abstract]
Amortization expense	$ 1,324	$ 1,395	$ 4,083	$ 2,943
Indefinite life trade names and trademarks	$ 900		$ 900		$ 900
Trumbull [Member]
Business Combinations, Goodwill and Intangible Assets (Textual) [Abstract]
Acquisition of Trumbull Services, LLC			Oct. 01, 2011
Customer relationships [Member]
Business Combinations, Goodwill and Intangible Assets (Textual) [Abstract]
Weighted average life of intangible assets			10 years 1 month 6 days
Leasehold benefits [Member]
Business Combinations, Goodwill and Intangible Assets (Textual) [Abstract]
Weighted average life of intangible assets			6 years 9 months 18 days
Developed technology [Member]
Business Combinations, Goodwill and Intangible Assets (Textual) [Abstract]
Weighted average life of intangible assets			10 years
Non-compete agreements [Member]
Business Combinations, Goodwill and Intangible Assets (Textual) [Abstract]
Weighted average life of intangible assets			1 year 6 months
Trade names and trademarks [Member]
Business Combinations, Goodwill and Intangible Assets (Textual) [Abstract]
Weighted average life of intangible assets			3 years

Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Assets
Money market and mutual funds	$ 83,225	$ 42,067
Derivative financial instruments	2,759	32
Total	85,984	42,099
Liabilities
Derivative financial instruments	8,488	17,729
Total	8,488	17,729
Level 1 [Member]
Assets
Money market and mutual funds	83,225	42,067
Derivative financial instruments
Total	83,225	42,067
Liabilities
Derivative financial instruments
Total
Level 2 [Member]
Assets
Money market and mutual funds
Derivative financial instruments	2,759	32
Total	2,759	32
Liabilities
Derivative financial instruments	8,488	17,729
Total	8,488	17,729
Level 3 [Member]
Assets
Money market and mutual funds
Derivative financial instruments
Total
Liabilities
Derivative financial instruments
Total

Derivatives and Hedge Accounting (Details) - Foreign Currency Exchange Contract [Member] - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Designated as Hedging Instrument [Member] \| Other current assets [Member]
Summary of fair value of the foreign currency exchange contracts
Foreign currency exchange contracts, Asset	$ 1,409
Designated as Hedging Instrument [Member] \| Other assets [Member]
Summary of fair value of the foreign currency exchange contracts
Foreign currency exchange contracts, Asset	1,350
Designated as Hedging Instrument [Member] \| Accrued expenses and other current liabilities [Member]
Summary of fair value of the foreign currency exchange contracts
Foreign currency exchange contracts, Liability	4,706	9,170
Designated as Hedging Instrument [Member] \| Other Noncurrent Liabilities [Member]
Summary of fair value of the foreign currency exchange contracts
Foreign currency exchange contracts, Liability	3,642	8,559
Derivatives Not Designated as Hedging Instruments [Member] \| Other current assets [Member]
Summary of fair value of the foreign currency exchange contracts
Foreign currency exchange contracts, Asset		32
Derivatives Not Designated as Hedging Instruments [Member] \| Accrued expenses and other current liabilities [Member]
Summary of fair value of the foreign currency exchange contracts
Foreign currency exchange contracts, Liability	$ 140

Derivatives and Hedge Accounting (Details 1) - Foreign Currency Exchange Contract [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Derivatives in Cash Flow Hedging Relationships [Member]
Derivative Instruments Gain/Loss
Amount of Gain/(loss) Recognized in AOCI on Derivative(Effective Portion)	$ 9,980	$ (5,835)	$ 4,859	$ (2,865)
Foreign exchange (loss)/gain [Member] \| Derivatives Not Designated as Hedging Instruments [Member]
Derivative Instruments Gain/Loss
Amount of Gain/(loss) Recognized in Income on Derivatives	2,623	(3,713)	2,925	(2,937)
Foreign exchange (loss)/gain [Member] \| Derivatives in Cash Flow Hedging Relationships [Member]
Derivative Instruments Gain/Loss
Amount of (Loss)/Gain Reclassified from AOCI into Income (Effective Portion)	(2,018)	656	(7,281)	3,386
Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

- Definition

The amount of net gains and losses recognized in income during the period on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges, on derivative instruments designated and qualifying as hedging instruments in cash flow hedges, and on derivative instruments not designated as hedging instruments.

+ References + Details

Derivatives and Hedge Accounting (Details Textual) £ in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($)	Sep. 30, 2012 GBP (£)	Sep. 30, 2012 USD ($)	Dec. 31, 2011 GBP (£)	Dec. 31, 2011 USD ($)
Derivatives and Hedge Accounting (Textual) [Abstract]
Net derivative losses	$ 3,297
Maximum Outstanding Term of Derivative Instruments					33 months	33 months
Gain/(Losses) that reclassified from AOCI into earning as a result of forecasted transaction	$ 0	$ 0	$ 0	$ 0
Foreign Currency Exchange Contract [Member]
Derivatives and Hedge Accounting (Textual) [Abstract]
Foreign exchange contracts Outstanding					£ 11,496	$ 226,555	£ 10,368	$ 235,866

Fixed Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Owned Assets:
Assets, Gross	$ 103,137	$ 92,286
Less: Accumulated depreciation and amortization	(65,523)	(54,736)
Owned Assets, net	37,614	37,550
Assets Under Capital Leases:
Capital Leased Assets, Gross	5,404	5,542
Less: Accumulated depreciation and amortization	(1,864)	(772)
Assets under capital leases, net	3,540	4,770
Fixed assets, net	41,154	42,320
Network equipment, computers and software [Member]
Owned Assets:
Assets, Gross	62,924	55,499
Assets Under Capital Leases:
Capital Leased Assets, Gross	377	474
Buildings [Member]
Owned Assets:
Assets, Gross	1,505	1,498
Land [Member]
Owned Assets:
Assets, Gross	985	980
Leasehold Improvements [Member]
Owned Assets:
Assets, Gross	24,403	21,733
Assets Under Capital Leases:
Capital Leased Assets, Gross	2,554	2,541
Office furniture and equipment [Member]
Owned Assets:
Assets, Gross	10,598	9,011
Assets Under Capital Leases:
Capital Leased Assets, Gross	1,498	1,645
Motor vehicles [Member]
Owned Assets:
Assets, Gross	699	828
Assets Under Capital Leases:
Capital Leased Assets, Gross	975	882
Capital work in progress [Member]
Owned Assets:
Assets, Gross	$ 2,023	$ 2,737

Fixed Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Fixed Assets (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Fixed Assets (Textual) [Abstract]
Depreciation and amortization expense	$ 5,009	$ 5,048	$ 14,649	$ 13,462

Capital Structure (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Capital Structure (Textual) [Abstract]
Acquisition of restricted stock from employees in connection with withholding tax payments		12,865	9,596
Acquisition of common stock			61,299
Total consideration			$ 1,439
Purchase price per share average closing price for the period			$ 23.47
Withholding tax payments related to the vesting of restricted stock for total consideration		$ 331	$ 185
common stock Sold	1,000,000
Selling stockholders sold of common stock	3,000,000
common stock price per share	$ 23.00		$ 23.00
Net proceeds from sale of common stock	$ 21,573		$ 21,965

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net gratuity cost
Service cost	$ 230	$ 297	$ 793	$ 686
Interest cost	101	62	312	190
Expected return on plan assets	(43)		(104)
Actuarial loss	30	26	94	79
Net gratuity cost	$ 318	$ 385	$ 1,095	$ 955

- Definition

An amount calculated as a basis for determining the extent of delayed recognition of the effects of changes in the fair value of assets. The expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 30
-Glossary Expected Return on Plan Assets
-URI http://asc.fasb.org/extlink&oid=6512136

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Glossary Expected Return on Plan Assets
-URI http://asc.fasb.org/extlink&oid=6512171

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)(3)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The increase in a defined benefit pension plan's projected benefit obligation or a defined benefit postretirement plan's accumulated postretirement benefit obligation due to the passage of time.

+ References + Details

- Definition

The actuarial present value of benefits attributed by the pension benefit formula to services rendered by employees during the period. The portion of the expected postretirement benefit obligation attributed to employee service during the period. The service cost component is a portion of the benefit obligation and is unaffected by the funded status of the plan.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Service Cost (Component of Net Periodic Pension Cost)
-URI http://asc.fasb.org/extlink&oid=6525008

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)(1)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a, h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Employee Benefit Plans (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Employee Benefit Plans (Details 1) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Change in Plan Assets
Plan assets at January 1, 2012			$ 1,015
Employer contribution			1,169
Expected return	$ 43		104
Effect of exchange rate changes			(35)
Plan assets at September 30, 2012	$ 2,253		$ 2,253

Assets, usually stocks, bonds, and other investments, that have been segregated and restricted (usually in a trust) to provide benefits, at their fair value as of the measurement date. Plan assets include amounts contributed by the employer (and by employees for a contributory plan) and amounts earned from investing the contributions, less benefits paid. If a plan has liabilities other than for benefits, those non-benefit obligations may be considered as reductions of plan assets.

+ References + Details

Employee Benefit Plans (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Employee Benefit Plans (Details 2) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Contribution to various defined contribution plans
Contribution to various defined contribution plans	$ 1,384	$ 1,426	$ 4,227	$ 3,676

Employee Benefit Plans (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Employee Benefit Plans (Textual) [Abstract]
Approximate expected return on the fund assets			9.00%
Percentage of discretionary contributions, Maximum			3.00%
Provision for defined contributions plan	$ 245	$ 179	$ 925	$ 525

Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Dec. 31, 2011
Future minimum lease payments under capital leases
2013	$ 2,133
2014	1,664
2015	1,245
2016	600
2017	23
Total minimum lease payments	5,665
Less: amount representing interest	772
Present value of minimum lease payments	4,893
Less: current portion	1,741	$ 1,729
Long term capital lease obligation	$ 3,152	$ 4,244

Leases (Details 1) $ in Thousands	Sep. 30, 2012 USD ($)
Future minimum lease payments under non-cancelable operating lease agreements expiring after more than twelve months
2013	$ 8,140
2014	6,794
2015	5,685
2016	3,522
2017	860
Thereafter	1,290
Total operating lease payments	$ 26,291

Leases (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Leases (Textual) [Abstract]
Rent expense under both cancellable and non-cancellable operating leases	$ 4,341	$ 4,050	$ 13,325	$ 10,253
Deferred rent	$ 4,670		$ 4,670		$ 3,815

Income Taxes (Details) $ in Thousands	9 Months Ended
Income Taxes (Details) $ in Thousands	Sep. 30, 2012 USD ($)
Summary of the activity related to the gross unrecognized tax benefits
Balance as of January 1, 2012	$ 5,324
Increases related to prior year tax positions
Decreases related to prior year tax positions	(2,245)
Increases related to current year tax positions	339
Decreases related to current year tax positions	(339)
Effect of exchange rate changes	22
Balance as of September 30, 2012	$ 3,101

Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Mar. 31, 2011	Sep. 30, 2012	Sep. 30, 2011	Mar. 31, 2012	Dec. 31, 2011
Income Taxes (Textual) [Abstract]
Income tax expense	$ 4,329	$ 4,138		$ 10,975	$ 8,639
Increase (Decrease) in effective tax rates	27.00%	33.00%		27.00%	25.50%
Tax exemption on profit	50.00%
Release of a valuation allowance on deferred tax assets			$ 1,961
Income Tax Holiday expire				middle of 2012
Company's current benefits from income tax holiday				4 years
Additional period for income tax holiday				2 years
Extension period of tax holiday				2 years
Company's new benefits from income tax holiday				4 years
Extendable Income Tax Holiday				2 years
Period completed by Bengaluru operation						5 years
Valuation allowance	$ 919			$ 919			$ 919
Federal and state net operating losses	18,920			18,920
Deferred income taxes	2,883			2,883			2,793
Recognized interest and penalties	(283)			(37)
Unrecognized Tax Benefits	$ 3,101			$ 3,101			$ 5,324
Completion of operation first time period for tax holiday				5 years

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Costs related to the Company stock-based compensation plan
Total	$ 1,871	$ 2,160	$ 7,329	$ 7,287
Cost of revenue [Member]
Costs related to the Company stock-based compensation plan
Total	330	343	1,571	1,320
General and administrative expenses [Member]
Costs related to the Company stock-based compensation plan
Total	867	1,090	3,472	3,444
Selling and marketing expenses [Member]
Costs related to the Company stock-based compensation plan
Total	$ 674	$ 727	$ 2,286	$ 2,523

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Stock-Based Compensation (Details1)	3 Months Ended		9 Months Ended
Stock-Based Compensation (Details1)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Fair value of each stock option granted to employees
Dividend yield		0.00%	0.00%	0.00%
Expected life (years)		4 years 6 months	5 years 4 months 17 days	5 years 7 months 17 days
Risk free interest rate		1.41%	0.97%	2.23%
Volatility		40.00%	40.00%	40.00%

Stock-Based Compensation (Details2) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Stock option activity under the Company's stock plans
Number of Options, Outstanding at December 31, 2011	3,030,128
Weighted-Average Exercise Price, Outstanding at December 31 2011	$ 13.22
Aggregate Intrinsic value Outstanding at December 31 2011	$ 28,318
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	6 years 7 months 6 days	6 years 9 months 15 days
Number of Options, Granted	416,129
Weighted-Average Exercise Price, Granted	$ 25.36
Number of Options, Exercised	(728,530)
Weighted Average Exercise Price, Exercised	$ 12.17
Number of Options, Forfeited	(196,020)
Weighted Average Exercise Price, Forfeited	$ 17.50
Number of Options, Outstanding at September 30, 2012	2,521,707	3,030,128
Weighted-Average Exercise Price, Outstanding at September 30, 2012	$ 15.19	$ 13.22
Aggregate Intrinsic value Outstanding at September 30, 2012	$ 36,092	$ 28,318
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	6 years 7 months 6 days	6 years 9 months 15 days
Number of Options, Vested and exercisable at September 30, 2012	1,323,562
Weighted Average Exercise Price, Vested and Exercisable at September 30, 2012	$ 13.18
Aggregate Intrinsic Value, Vested and Exercisable at September 30, 2012	$ 21,603
Weighted Average Remaining Contractual Life (Years) Vested and Exercisable at September 30, 2012	5 years 6 months 26 days
Available for grant at September 30, 2012	2,246,314

Stock-Based Compensation (Details3)	9 Months Ended
Stock-Based Compensation (Details3)	Sep. 30, 2012 $ / shares shares
Restricted Stock [Member]
Restricted stock and restricted stock unit activity
Number, Outstanding at December 31, 2011 \| shares	63,834
Weighted-Average Intrinsic Value, Outstanding at December 31, 2011 \| $ / shares	$ 18.41
Number, Vested \| shares	(52,126)
Weighted-Average Intrinsic Value, Vested \| $ / shares	$ 18.29
Number, Forfeited \| shares	(2,901)
Weighted-Average Intrinsic Value, Forfeited \| $ / shares	$ 23.82
Number, Outstanding at September 30, 2012 \| shares	8,807
Weighted-Average Intrinsic Value, Outstanding at September 30, 2012 \| $ / shares	$ 17.64
Restricted Stock Units [Member]
Restricted stock and restricted stock unit activity
Number, Outstanding at December 31, 2011 \| shares	939,659
Weighted-Average Intrinsic Value, Outstanding at December 31, 2011 \| $ / shares	$ 19.40
Number, Granted \| shares	353,050
Weighted-Average Intrinsic Value, Granted \| $ / shares	$ 24.82
Number, Vested \| shares	(189,442)
Weighted-Average Intrinsic Value, Vested \| $ / shares	$ 19.11
Number, Forfeited \| shares	(87,202)
Weighted-Average Intrinsic Value, Forfeited \| $ / shares	$ 20.89
Number, Outstanding at September 30, 2012 \| shares	1,016,065
Weighted-Average Intrinsic Value, Outstanding at September 30, 2012 \| $ / shares	$ 21.22

Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Stock-Based Compensation (Textual) [Abstract]
Expected dividend yield			$ 0
Unrecognized compensation cost for unvested options	$ 5,898		$ 5,898
Expected weighted average period			2 years 6 months 18 days
Weighted average fair value of options granted	$ 0.00		$ 9.43	$ 8.15
Total fair value of shares vested in period	$ 409	$ 467	$ 2,757	$ 2,603
Unrecognized compensation cost	$ 16,847		$ 16,847
Expected expensed over a weighted average period			2 years 5 months 19 days

Geographical Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Geographical Information (Details) - USD ($) $ in Thousands	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Revenues
Total Revenues	$ 112,639	$ 100,026	$ 325,277	$ 257,961
Fixed assets, net
Total Fixed assets	41,154		41,154		$ 42,320
United States [Member]
Revenues
Total Revenues	80,949	71,503	234,514	184,981
Fixed assets, net
Total Fixed assets	2,597		2,597		1,408
United Kingdom [Member]
Revenues
Total Revenues	23,061	20,983	66,046	59,097
Rest of World [Member]
Revenues
Total Revenues	8,629	$ 7,540	24,717	$ 13,883
Fixed assets, net
Total Fixed assets	1,003		1,003		1,179
India [Member]
Fixed assets, net
Total Fixed assets	32,942		32,942		35,787
Philippines [Member]
Fixed assets, net
Total Fixed assets	$ 4,612		$ 4,612		$ 3,946

Commitments and Contingencies (Details) $ in Thousands	9 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2012 USD ($)
Assessment orders details
Amount Demanded (Including Interest)	$ 19,376
Amount Deposited (Including additional Interest)	12,805
Bank Guarantee Issued (Including additional Interest)	$ 2,506
Assessment Order One [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. in the 2003-04 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.
Amount Demanded (Including Interest)	$ 1,839
Amount Deposited (Including additional Interest)	$ 1,839
Assessment Order One [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2004
Assessment Order One [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2003
Assessment Order Two [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2004-05 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.
Amount Demanded (Including Interest)	$ 1,783
Amount Deposited (Including additional Interest)	$ 1,783
Assessment Order Two [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2005
Assessment Order Two [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2004
Assessment Order Three [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2005-06 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.
Amount Demanded (Including Interest)	$ 3,439
Amount Deposited (Including additional Interest)	$ 3,439
Assessment Order Three [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2006
Assessment Order Three [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2005
Assessment Order Four [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2006-07 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.
Amount Demanded (Including Interest)	$ 3,422
Amount Deposited (Including additional Interest)	$ 2,820
Assessment Order Four [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2007
Assessment Order Four [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2006
Assessment Order Five [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order alleges that the transfer price we applied to transactions between EXL India and EXL Inc. for the 2007-08 tax year was not appropriate and also disallows certain expenses claimed as tax deductible by EXL India.
Amount Demanded (Including Interest)	$ 3,964
Amount Deposited (Including additional Interest)	$ 946
Assessment Order Five [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2008
Assessment Order Five [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2007
Assessment Order Six [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order alleges that EXL Inc. has a permanent establishment in India.
Amount Demanded (Including Interest)	$ 2,775
Amount Deposited (Including additional Interest)	1,325
Bank Guarantee Issued (Including additional Interest)	$ 2,071
Assessment Order Six [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2004
Assessment Order Six [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2003
Assessment Order Seven [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order alleges that EXL Inc. has a permanent establishment in India.
Amount Demanded (Including Interest)	$ 89
Amount Deposited (Including additional Interest)	38
Bank Guarantee Issued (Including additional Interest)	$ 49
Assessment Order Seven [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2005
Assessment Order Seven [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2004
Assessment Order Eight [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order alleges that EXL Inc. has a permanent establishment in India.
Amount Demanded (Including Interest)	$ 659
Amount Deposited (Including additional Interest)	341
Bank Guarantee Issued (Including additional Interest)	$ 386
Assessment Order Eight [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2006
Assessment Order Eight [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2005
Assessment Order Nine [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order alleges that EXL Inc. has a permanent establishment in India.
Amount Demanded (Including Interest)	$ 1,130
Assessment Order Nine [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2007
Assessment Order Nine [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2006
Assessment Order Ten [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order alleges the transfer price we applied to transactions between OPI India and OPI Inc., for the 2004-05 tax year was not appropriate and proposes certain adjustments to the methodology for computing the amount of the tax exemption.
Amount Demanded (Including Interest)	$ 135
Amount Deposited (Including additional Interest)	$ 135
Assessment Order Ten [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2005
Assessment Order Ten [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2004
Assessment Order Eleven [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order proposes certain adjustments to the methodology for computing the amount of the tax exemption.
Amount Demanded (Including Interest)	$ 69
Amount Deposited (Including additional Interest)	$ 69
Assessment Order Eleven [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2009
Assessment Order Eleven [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2008
Assessment Order Twelve [Member] \| Foreign Country [Member]
Assessment orders details
Income Tax Assessment Order Description	The assessment order proposes certain adjustments to the methodology for computing the amount of the tax exemption.
Amount Demanded (Including Interest)	$ 72
Amount Deposited (Including additional Interest)	$ 70
Assessment Order Twelve [Member] \| Foreign Country [Member] \| Maximum [Member]
Assessment orders details
Tax Years	2009
Assessment Order Twelve [Member] \| Foreign Country [Member] \| Minimum [Member]
Assessment orders details
Tax Years	2008

Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
Commitments and Contingencies (Textual) [Abstract]
Net advances paid for purchase of fixed assets	$ 1,129
Export-Oriented units established percentage	100.00%
Income Tax Holiday expire	middle of 2012
Extendable income tax holiday	4 years
Company's current benefits from income tax holiday	4 years
Income tax holiday for one of its operations centers expire	2012
Amounts paid as deposits in respect of Contingencies	$ 12,805	$ 11,662
Extendable for additional	2 years
Amounts deposited for bank guarantees	$ 2,506	$ 2,494

Subsequent Events (Details Textual) - Subsequent Event [Member] $ in Thousands, Member in Millions	9 Months Ended
	Sep. 30, 2012 USD ($) Member
Subsequent Events (Textual) [Abstract]
Company acquisition, Date	Oct. 12, 2012
Members under management on its platforms \| Member	50
Aggregate consideration paid for all the outstanding capital stock \| $	$ 37,500