It’s a rather fascinating one that began over 17 years ago. It is one about building up from scratch, facing challenges and growing from strength to strength, characterized by the high entrepreneurial energy brought in by the founders - Vikram Talwar and myself.
Within two years of starting up, EXL became acquired by Conseco, an American insurance company. By then, EXL already boasted of running 100 different processes and had 1,000 FTEs on its rolls. Within a short span of 12-18 months its infrastructure and managerial capabilities had built a sizable reputation and outshone many competitors, so it made perfect sense for Conseco to make the acquisition. Thereafter, EXL functioned as a captive unit and serviced a few third-party clients as well.
However, major changes were coming. Conseco filed for bankruptcy in 2002 after a severe financial upheaval. At this juncture, Vikram and I made a rather intelligent move by buying ourselves out and partnering with Oakhill Capital and FTV Capital in parallel. This was not just a smart move, but a courageous one as well. At that point, 95% of our revenue came from Conseco, and it was all terminated in a matter of three months.
It was time to start all over again, but with a big difference. By then EXL had gained considerable mastery over the insurance domain, which would prove to be a winning bet even decades later. There were 1,500 people on our rolls – and to the management’s credit no one lost their jobs. Those challenging months were extremely hard, but they provided an opportunity for cross-training which held the company in good stead. It may be worthwhile for present-day startups to take a leaf out of our book when faced with existential challenges.
As the commonly known adage goes, business is powered by robust fundamentals. EXL proved that rule right. Not only did it weather the storm, but it also grew its business back in a very short time. In the years to come, insurance would prove to be our dominant business segment. Even today, it has a very high share of 50% of our business. Building a deep knowledgebase on specific domains has been the company’s hallmark and one of the core competencies it swears by even today.
In 2006 the company went public and became listed on NASDAQ, celebrating its tenth anniversary as a publicly traded company last year. I have every reason to be most happy the way this turned out. EXL is now a 750 million dollar company in terms of annual revenue, employing 26,000 employees spread across 38 global centres in India, Philippines, Eastern and Central Europe, Romania, Bulgaria, Czech Republic, South Africa, Columbia and the United States. It has both a global footprint and a very strong Indian heritage.
But back to the Conseco part of the narrative, that experience left a deep imprint. At that time, there were severe challenges around finding and keeping the right talent. As can be expected, competitors tried to poach our key talent because the company was constrained. The learning curve was very steep for us back then. However, it demonstrated that the way you treat employees during difficult times is crucial, as this is when the distinct character of an organization takes shape. Some old timers speak about those times today to inspire the younger generation.