IT outsourcing vendor ExlService Holdings today said its first quarter 2014 revenue increased to $121.8 million from $116 million in Q1 2013.
It paid approximately $2.5 million due to the reimbursement of transition and disentanglement costs tied to a previously disclosed client issue.
Exl said its outsourcing services revenues increased to $100.1 million from $97.6 million.
Transformation services revenues rose to $21.7 million from $18.4 million.
Gross margin was 38.5 percent compared to 37.1 percent. Outsourcing services gross margin was 41.2 percent compared to 39.0 percent.
Net income grew to $11.1 million from $9.8 million.
Rohit Kapoor, vice chairman and CEO, ExlService, said: “EXL had a solid first quarter, driven by strength in decision analytics revenues particularly in risk and marketing analytics engagements tailored to the banking, insurance and healthcare industries.”
In outsourcing, industry verticals such as life insurance, healthcare, banking, and utilities performed particularly well.
EXL clients are actively looking for innovative solution ideas that integrate decision analytics and operations management in long-term annuity arrangements.
The company is expecting annual revenues of $480 million to $500 million.