‘Organic growth is the way for us’

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: domain expertise so that we can bring in incremental value to our customer relationships in India.

Insurance, banking and financial services clients contribute the maximum towards EXL’s revenues. Are you looking at only these sectors?

If you take a look at the evolution of EXL, it’s been a very focussed company. We used to drive about 70% of our revenues from our banking, financial services and insurance. However, as we grow, it’s likely that we will diversify into other verticals.

Are you looking for acquisitions in Eastern Europe?

We are going to expand into two geographies in the next year. The Philippines will be the first one. We want to set up a green field operation there. We want to build our own capability there and service our existing clients with an expanded service outfit as well as target new customers. We also want to expand into Eastern Europe. We believe that the preferred way to expand into Eastern Europe is through an acquisition. So, we are looking at various options so that we can integrate an existing provider into our business.

But till now you have grown organically. Are you changing the strategy now?

At the end of the day, a healthy business is one where organic growth rate is fundamentally strong. Acquisitions are meant to add to the core business of the company. So, when we acquire, it is either to fill in a gap in the capabilities or the exclusives that the company has. So, it should be able to give us access to a new geography or to a new customer base. The principal way of growing for us is the organic way. Many companies that are going for many acquisitions are looking at size and scale. But the issue and the challenge really is the ability to integrate people and businesses. If you take a look at the IT services industry, leading players like TCS, Infosys and Wipro grew primarily through the organic route. You can also take a look at the numerous examples of roll-ups of the Indian IT services and in most of the cases they have been unsuccessful.

Asia-Pacific region is becoming hot for outsourcing? What are EXL’s plans for the region?