Kale Consultants Limited Nasscom Innovation Awards 2006

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NASSCOM Innovation Awards 2006 Business Model
Innovation
Presented by Kale Consultants Ltd.
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Corporate Overview
A pioneer in Travel and Transportation, with 20
years of experience in end-to-end delivery
capabilities

• Vertical Focus
• Airline
• Travel Hospitality
• Transportation Logistics

• Services and Solutions
• Information Technology
• Business Process Outsourcing
• Off-the-shelf Solutions/ Products

• Industry Recognition
• StB (Simplifying the Business) partner with
  IATA
• Industry Associate of Cargo 2000, an IATA
  interest group
• APEX - Industry Standard Proration engine
  selected by IATA

• Global Clientele
• 60 reputed Global Clientele
• Multi-year contracts with Industry leaders
• Satisfying customers in diverse geographies and
  with varied business models

Domain
Technology
BPO

• Global Presence
• Near shore presence in US and UK
• 3 offshore Delivery Centers in India
• 2 BPO service centers in Mumbai Pune
• More than 900 skilled professionals

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The Perfect Setting !
A turbulent industry and a vibrant IT service
provider, Perfect recipe for Innovation !!
Kale
Airlines Industry

• Industry reeling from 9/11, urgent need to reduce
  costs, not ready for CAPEX, willing to look at
  new paradigms
• Revenue Accounting - the industry scenario
• Back office function complex, both people and
  technology intensive
• Done in-house as a rule outsourcing was to
  captives ( eg BA- WNS and Swissair to AFS) or low
  end data entry work only
• Clear line between software vendors and BPO
  vendors

• A recent entrant in the revenue accounting
  solution space with package REVERA
• 7 customers mostly small/medium airlines
• Software product company .no BPO activity at all
• Typical problems of product business feast or
  faminesmall annuity revenue streams and
  predictability
• After 9/11, very challenging to get customers to
  invest in solution replacement

The need for innovation more pressing than ever
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We came, We analyzed and We innovated !!
Innovations focused on addressing the industry
pain points
Our Innovations
Their Concerns

• To outsource and transform technology

• Platform based BPO a global first in the
  industry

• To get cost flexibility

• All inclusive Transaction based pricing

• Risks of outsourcing

• Portfolio of offerings

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Innovation 1 Platform based BPO a global
first in the industry
A disruptive business model combined Product,
IT service BPO service
Benefits - Kale
Benefits - Industry

• No headaches of managing
• Application Software
• Technical infrastructure
• People
• Domain knowledge
• Process management
• Defined and Committed SLA, quality and cost
• Transformation
• Improved accuracy
• Faster reporting
• Greater productivity
• Year on year improvements
• Cost Saving
• Capex Avoidance

• New business opportunity BPO
• Annuity revenues
• Differentiation in market
• Sticky business
• Opportunity to improve product beta site in our
  control productivity improvements

Vision
To create an end to end outsourced RA service
that is global best by all benchmarks
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Innovation 2 All inclusive Transaction
Pricing
Reinvented perspective of looking at the pricing
Benefits - Industry
Benefits - Kale

• No need to manage/negotiate productivity

• Flexibility in deploying people and changing
  software and processes

• Variable cost pay for use

• Motivation to enhance productivity

• Flexibility in the business environment

• Differentiator from the pure play BPOs

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Innovation 3 creating a bouquet of offerings
Peeling the Onion enhanced product/service
portfolio

• World class solutions in RA space
• Application software
• REVERA
• APEX proration engine
• Services
• Revenue Accounting using
• REVERA or customers
• system
• Sales audit
• Refunds and re-issues audit
• Interline audit
• Booking class audit
• CRS fees audit
• Reservation clean-up
• Cargo Revenue Accounting
• Neutral Fare Proration ( IATA NFP)
• Hosted REVERA and APEX

Benefits - Kale
Benefits - Industry

• Multiple entry points to get a customer
  relationship

• Can start anywhere .lower risk and get immediate
  value

• Continuum to fully outsourced PRA service

• Opportunity to up-sell and cross-sell

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Gaining Velocity in the market place
Nod from the customers and markets owing to the
embedded innovation
Number of Transactions

• Grew from 5 to 33 customers (11 are out of the
  worlds top 25 Airlines) in PRA space
• Starting with 3.6 million transactions, today
  Kale processes 50 million transactions
• Kale has broadened the range of services from
  offering 1 service to 8 different services today
  in the Revenue Accounting space
• Last year Audit services helped airlines recover
  USD 10.44 million.

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They trust us with their business
Partner of choice for Industry leaders globally
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Client Testimonials
We Delivered, They Benefited, They Expressed !
Our business objective was to significantly
reduce our operational costs and improve the
revenue accounting process. To achieve this, we
needed to use an industry standard solution, and
outsource the work to an accredited and
established service provider with the requisite
processes to ensure business continuity and low
risk. After an exhaustive evaluation, Kale MPS
came out as the clear winner in terms of
providing us the confidence to outsource this
critical function. Kale's proven domain expertise
and excellent service made our decision an easy
one.
Mr. Nigel Turner Chief Executive Officer
Outsourcing to experts in the field helps us
keep our costs in line. We choose Kale because of
their expertise in understanding the intricacies
and complexities of revenue accounting. It gives
me immense pleasure to announce that we are
continuing our relationship and moving towards
achieving even greater cost benefits. We look
forward to a partnership with Kale for a further
four years.
Mr. Akbar Al Baker Chief Executive Officer
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A word on NFP ( Neutral fare prorate )
service
Innovation and Kale, The journey continues with
NFP
The Concept

• IATA identified simplifying the interline
  processing as being great opportunity to reduce
  cost for industry
• Concept is that ticket data is sent to an
  industry standard NFP engine and values accepted
  by participating carriers
• Will eliminate duplication of efforts, reduce
  rejections and ensure accuracy of revenue sharing

Industry Initiatives

• Industry working group started search for vendors
• Kales APEX and ATPCO s CHIPS finally chosen
  as the exclusive vendors for NFP technology.
• Service is in production being implemented by 25
  airlines in Phase I

Kale - a huge pride for the Indian Industry
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Happy to announce !!
Partner of choice for Industry leaders globally
Sky Team chooses Kales APEX for NFP service
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Our mission
Kales commitment to leadership through constant
innovation

• Revenue accounting is a global opportunity worth
  approximately 600m. Most of the spending is
  in-house
• We have led innovations in this space and our
  goal is to be THE 1 supplier of choice by all
  parameters

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Future is Bright !!
The potential for Kale is enormous

• The Travel and Transport industry is going
  through a period of unprecedented change
• Huge growth ( 6 CAGR globally, much faster in
  Asia )
• Increased competition
• Dropping yields
• Huge e-commerce adoption
• Customers are asking for
• Transformation solutions
• More efficient and simpler business processes
• Cost savings, year on year
• Riskreward partnerships

• Kale is getting into next phase of organizational
  growth
• Last six years was about global leadership albeit
  in a niche
• Now our aspiration is to be an Omnibus solution
  provider to the Travel and Transport Industry
• Our competitive edge is
• Technology BPO domain skills and capabilities
  
• Solution mind set and innovation in our DNA
• Our customer base
• Our brand

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• Thank you !