ExlService Holdings CEO Rohit Kapoor advocates for smaller, specialized language models that corporations can own and control. This strategy moves away from relying on large, rented foundation models from major tech providers. Kapoor cites regulatory risks and the need for data sovereignty as the primary drivers for this shift.
The approach aims to give clients greater control over their intellectual property and business operations. TD Cowen recently named EXLS as a top small and mid-cap investment idea. The firm notes the company’s resilient business model and growth potential despite current pressures on the IT services sector.
Analysts believe ExlService is well-positioned to grow as market concerns regarding AI's impact moderate. The company’s focus on data and AI-led offerings remains a key driver for future performance.