EXLS · 10-Q · 2026Q1 · Full report

Pricing Model Shift

ExlService Holdings, Inc. · 2026-04-28 · Importance 41 · Surprise 42

EXL is observing and acting on an industry shift from time-and-materials and FTE pricing toward transaction-based, outcome-based and subscription models; these alternative pricing structures are being applied selectively across clients and platforms. Management states it is seeking to move certain clients from FTE to transaction-based or other alternative models to align compensation with realized client outcomes. The shift increases focus on operating efficiency and is intended to protect or improve gross margins for platform and outcomes-based offerings. Outcome-based contracts may alter revenue recognition and variability of future revenue streams as usage and savings metrics determine compensation.

Key facts

• The business offers pricing models including time-and-material, full-time-equivalent, transaction-based, outcome-based, subscription-based and other alternative pricing models and is observing a shift toward transaction-based and outcome-based pricing.