Varna-0358-Corporate Travel BPO ITC

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M.P. Birla Institute of Management, Bangalore

1

“Exploring BPO market for advertising and finance

industries-an exploratory study for ITC InfoTech”

Submitted to

Bangalore UniversityIn partial fulfillment of

the requirements for the awardof the degree of

Masters of Business Administration

Under the guidance of External Guide Internal Guide

Mr. Prabhjinder Bedi Dr. N.S. Viswanath

Manager – BPO ProfessorITC-Infotech Ltd. M.P.B.I.M – B.V.BBangalore Bangalore

By Varna U.A

(Reg no. 03XQCM6114)

M.P.Birla Institute of Management

Associate Bharatiya Vidya BhavanBangalore-5600012005-2006




2

STUDENT DECLARATION

I hereby declare that this project report entitled “Exploring BPO

market for advertising and finance industries-an

exploratory study for ITC InfoTech” has been undertaken and

completed by me under the valuable guidance of Mr. Prabhjinder Bedi,

Manager-BPO ITC-Infotech Limited and Prof. N S Viswanath in partial

fulfillment of degree of Master of Business Administration (MBA) program

is my original work and not submitted for the award of any other degree,

diploma, fellowship or other similar title or prizes.

Varna U.A

Reg No: 03XQCM6114




3

PRINCIPAL’S CERTIFICATE

This is to certify that this report titled “Exploring BPO market

for advertising and finance industries-an exploratory study

for ITC InfoTech “ has been prepared by Miss Varna U.A

bearing registration number 03XQCM6114, under the guidance of

Dr. N S Viswanath, M P Birla Institute Of Management, Assosiate

Bhartiya Vidya Bhavan, Bangalore.

Place: Bangalore Dr. Nagesh Malavalli

Date: Principal




4

GUIDE’S CERTIFICATE

This is to certify that this report titled “Exploring BPO market for

advertising and finance industries-an exploratory study for

ITC InfoTech has been prepared by Miss. Varna U.A bearing

registration number 03XQCM6114, under my guidance. This has not formed

a basis for the award of any Degree/ Diploma by Bangalore University or

any other university.

Place: Bangalore Dr. N S Viswanath

Date: Project Guide




5

ACKNOWLEDGEMENT

I am extremely great full to Miss. Anita Saldanha, Senior Officer (Human

Resource Management) for permitting me to carry out this study.

I would like to thank Mr. Prabhjinder Bedi ,Manager -BPO who

allowed me to work under him and gave me an opportunity to be part of

business plan.

I wish to place on record my deep sense of gratitude to Dr. N S

Viswanath for his expert advice, valuable guidance, sustained Interest and

criticism in the preparation of internship report.

I would like to express my profound gratitude to all those who have helped

me directly or indirectly in the course of this study.

Place: Bangalore Varna U A

Date: Reg No: 03XQCM6114




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List of Graphs

1. Percentage of air travel in a month

2. Travel booking

3. Availability of separate travel department?

4. Current Travel solution

5. Availability ARC code

6. Kind of GDS

7. Association to current solution

8. Inclusive package inclination

9. Air frequency trips

10. Air spent annually

11. Class of travel

12. Factor concerned

13. Turnaround time

14. Annual spent hotel & car

15. Traveler choice of travel

16. Satisfaction level

17. Conflicting area

18. Process Flow chart

19. Travel Booking evolution




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INTRODUCTION

ITC InfoTech is an SEI CMM Level 5 software services & solutions provider.

Supported by ITC’s strong business fundamentals, our corporate vision and

resources are totally aligned to deliver to our global clients the true essence

of “Business-friendly Solutions” innovatively and cost-effectively.

It is a part of the ITC Group, one of the world' s most successfully

diversified companies. ITC is one of India’s foremost private sector

companies with a market capitalization of around US $ 6 billion and a

turnover of US $ 2.6 billion. Rated among the World' s Leading Companies

by Forbes magazine, ITC ranks fourth in net profit among India' s private

sector corporations. ITC has a diversified presence in Cigarettes, Hotels,

Paperboards & Specialty Papers, Packaging, Agri-Business, Branded

Apparel, Packaged Foods & Confectionery, Greeting Cards and other

FMCG products.

Need for the study

The need to undergo this training for a MBA student of Bangalore

University is to fulfill the requirement of MBA degree course of the

University. The training is undertaken during May-August 2005 and main

purpose of the training is to understand the real time business scenario &

know the practical implication and policies of the company. The theoreticalaspects that we study during our course can




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be implemented into practice. This is done in order to sustain a WIN-WIN

situation for the company and oneself.

Objectives of the study

Getting an insight of practices & policies followed in carrying out a business

Plan in corporate scenario. As the annual travel spend of fortune 500

companies range from $10 Million to $100 Million thus if they outsource

their travel need to destination like India where FTE (full time equivalent) is

1/3 of American counterpart. Then these companies can reduce cost and

show better profitability in their balance Sheet.




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ITC Limited –Overview

ITC is one of India's foremost private sector companies with a market capitalization

of over US $ 8 billion and a turnover of US $ 2.6 billion. Rated among the World's

Leading Companies by Forbes magazine, ITC ranks third in pre-tax profit among

India's private sector corporations. ITC has a diversified presence in Cigarettes,

Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Branded

Apparel, Packaged Foods & Confectionery, Greeting Cards and other FMCG

products. While ITC is an outstanding market leader in its traditional businesses of

Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gainingmarket share even in its nascent businesses of Branded Apparel, Greeting Cards and

Packaged Foods & Confectionery.

ITC employs over 15,000 people at more than 60 locations across India. Ranked

among India's most valuable companies by the 'Business Today' magazine, ITC

continuously endeavors to enhance its wealth generating capabilities in a

globalizing environment to consistently reward more than 1, 37, 544 shareholders,

fulfill the aspirations of its stakeholders and meet societal expectations. This over-

arching vision of the company is expressively captured in its corporate positioning

statement: "Enduring Value. For the nation. For the Shareholder."

Background

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco

Company of India Limited'. Its beginnings were humble. A leased office on Radha




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Bazar Lane, Kolkata, was the centre of the Company' s existence. The Company

celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land

situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum

of Rs 310,000. This decision of the Company was historic in more ways than one. It

was to mark the beginning of a long and eventful journey into India' s future. The

Company' s headquarter building, ' Virginia House' , which came up on that plot of

land two years later, would go on to become one of Kolkata' s most venerated

landmarks. The Company' s ownership progressively Indianised, and the name of the

Company was changed to I.T.C. Limited in 1974. In recognition of the Company' s

multi-business portfolio encompassing a wide range of businesses - Cigarettes &

Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty

Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery

- the full stops in the Company' s name were removed effective September 18, 2001.

The Company now stands rechristened 'ITC Limited' .

History and Evolution

Though the first six decades of the Company' s existence were primarily devoted to

the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the

Seventies witnessed the beginnings of a corporate transformation that would usher

in momentous changes in the life of the Company.




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This KOVAI Unit allows ITC to improve customer service with reduced lead

time and a wider product range.

• In 1985, ITC set up Surya Tobacco Co. in Nepal as a joint venture with the

reputed Soaltee group. In August 2002, Surya Tobacco became a subsidiary

of ITC Limited and its name was changed to Surya Nepal Private Limited

(Surya Nepal).

• In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper

manufacturing company and a major supplier of tissue paper to the cigarette

industry. The merged entity was named the Tribeni Tissues Division (TTD).

To harness strategic and operational synergies, TTD was merged with the

Bhadrachalam Paperboards Division to form the Paperboards & Specialty

Papers Division in November 2002.

• Also in 1990, leveraging its agri-sourcing competency, ITC set up the

International Business Division (IBD) for export of agri-commodities. The

Division is today one of India' s largest exporters. ITC' s unique and now

widely acknowledged e-Choupal initiative began in 2000 with soya farmersin Madhya Pradesh. Now it extends to 6 states covering over two million

farmers.

• In 2000, ITC' s Packaging & Printing business launched a line of high quality

greeting cards under the brand name ' Expressions' . In 2002, the product

range was enlarged with the introduction of Gift wrappers, Autograph

books and Slam books. In the same year, ITC also launched ‘Expressions

Matrubhasha’, a vernacular range of greeting cards in eight languages and

‘Expressions Paperkraft’, a range of premium stationery products. In 2003,

the company rolled out ‘Classmates’, a range of notebooks in the school

stationery segment.




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• ITC also entered the Lifestyle Retailing business with the Wills Sport range

of international quality relaxed wear for men and women in 2000. The Wills

Lifestyle chain of exclusive stores later expanded its range to include Wills

Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC

also initiated a foray into the popular segment with its men' s wear brand,

John Players, in 2002.

• In 2000, ITC spun off its information technology business into a wholly

owned subsidiary, ITC Infotech India Limited, to more aggressively pursue

emerging opportunities in this area.

• ITC made its entry into the branded & packaged Foods business in August

2001 with the launch of the Kitchens of India brand. A more broad-based

entry has been made since June 2002 with brand launches in the

Confectionery, Staples and Snack Foods segments. In 2002, the ' mint-o’

trade mark was acquired and relaunched in orange and mint flavours. In the

same year ‘Candyman’ was added to the confectionery range and

‘Aashirvaad’ atta was rolled out. The ' Aashirvaad’brand now extends toready-to-eat foods, ready-to-cook pastes and salt. In 2003 the ‘Candyman’

range was expanded to include deposited candies and éclairs. In 2003

‘Sunfeast’ biscuits were launched and ‘mint-o’ lemon mint flavour was

introduced. In 2004 the ‘Kitchens of India’ brand was extended to cooking

pastes.

• In 2002, ITC' s philosophy of contributing to enhancing the competitiveness

of the entire value chain found yet another expression in the Safety Matches

initiative. ITC now markets popular safety matches brands like iKno,

Mangal Deep, VaxLit, Delite and Aim.




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• ITC' s foray into the marketing of Agarbattis (incense sticks) in 2003 marked

the manifestation of its partnership with the cottage sector. ITC' s popular

agarbattis brands include Spriha and Mangal Deep across a range of

fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and

Nagchampa.

ITC-INFOTECH LIMITED

ITC Infotech is an SEI CMM Level 5 software services & solutions provider.

Supported by ITC’s strong business fundamentals, its corporate vision and

resources are totally aligned to deliver to global clients the true essence of

“Business-friendly Solutions” innovatively and cost-effectively.

Welcome to ITC Infotech India Ltd.: Its a reputed Business Process Solutions

company with over 2600 employees servicing leading Fortune 500 firms with BPO

& Offshore Outsourcing in a single integrated service platform.

Based in the sprawling 36 acre ITC InfoTech park (in Bangalore, India), BPO

business commenced in September 2002 with one end-client. Today, they have

extended their services to multiple Fortune class clients in Americas and Europe

working 24X7.

Business process outsourcing solutions deliver a distinct value to needs of an

offshore-based Business Solutions Partner. Experience in building successful

delivery environments ensures client' s risks are mitigated, backed withtheir market

and industry experience, domain expertise, process and people management skills.




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“ITC Limited” their parent company is a USD 2.6 Billion business conglomerate

with diversified knowledge in businesses that span the

likes of Hospitality & Travel and CPG. Parentage' s experience of over a century in

these businesses has helped them understand and create practices that meet world-

class outsourcing solution needs in areas like Finance & Administration, Human

Resource Management and other Knowledge Enhanced service requirements of our

outsourcing partners.

Presently they are positioned to offer knowledge and process enriched competency

business solutions in the Travel & Hospitality and CPG domains. Creating distinct

value for their business outsourcing partners in these domains had developed core

competencies coupled with best in industry processes. Expertise has translated into

robust and scalable, yet flexible business offshore methodologies .Travel and

Entertainment has become the second largest sales and general administrative

expense line item on the income statement for most organizations. They offer end-

to-end travel management solutions that can help organizations cut their T&E cost

by around 30-40%.

Their approach and expertise spans process reengineering, IT integration services,

offshore travel helpdesk services and corporate travel cost analytics that can help to

strategically align with their clients outsourcing and process demands at various

stages of the service cycle.




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COMPANY VISION

• Leadership in select technologies/ domains including PLM,

Hospitality, CRM, Manufacturing and Financial Services

• Among the top 10 Indian Outsourcing companies

• One of the top 3 Indian BPO companies

• 20 key clients from the Fortune 1000 list

• Top 5 employer of choice

COMPANY MISSION

Deliver THE BEST in class business solutions to our customers and enhance value

for all stakeholders - always

Overview - Travel pattern in a corporate

The big picture: Travel has always been an important part of how

companies achieve business goals. The practice of strategic travel

management grew over last 25 years to most effectively meet those

objectives. As the economy took a downturn beginning in 2000, the

importance of effective travel management became even clearer. Since then,the growing corporate emphasis on accountability, safety, and security has

reshaped the role of travel managers and re-emphasized the importance of

travel management.




17

Business travel volumes and expenditures fluctuate with the economy, but

even in lean times, corporations send people on the road. The 2004 Business

Travelers Survey is one in of several indicators showing that business travel

is on the rise.

Business travel is integral to the travel industry, and the American

economy. 38.3 million Americans generated 210.5 million domestic business

person trips in 2003. They spent $153.2 billion – nearly one-third of the

domestic travel market.

Corporate approach to travel policy. Just over four in ten (44%) business

travelers report they must use the telephone or websites to book business

trips on their own. On the other hand, nearly that many (37%) report they

book travel in one of four ways, classified as managed travel programs:

• A central travel management department or on-site travel agency (17%)

• An off-site travel agency (9%)• A central travel management department plus company-wide booking

Software (6%)

• An Internet-based travel agency, such as Orbitz for Business, Expedia

Corporate Travel or Travelocity Business) (5%)

Business Process Outsourcing- The New Growth Sector

• Global outsourcing spending is projected to top $1.2 trillion by the end

of 2003.




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• Globally, outsourcing spending is increasing by 11 percent per year.

• Two thirds of the outsourcing spend is in large Fortune 500 companies.

• Two-thirds of outsourcing spending is in the US.

• Shrinking margins will force more companies to break with tradition and

consider BPO to reduce operating cost.

• A lot of demand is expected to be generated by HR processes especially

payroll Management

• In India , ITES-BPO segment registered a growth of 59% to reach Rs.

113bn (US $2.3 billion)

• According to current industry estimates, India commands more than 90%

of all offshore outsourcing in IT services

• ITeS contributed 25% to the total IT Software and Service exports from

India during FY03

• Captive ITES-BPO players have almost doubled their share in Indian

software exports, growing by a phenomenal 90% in last financial year

• ITES-BPO segment is projected to register a growth of 54% to clock

revenues of US$ 3.6 billion during FY2003-04

• The ITeS industry is expected to grow to Rs. 810bn in 2008.

Brief overview about CPG sector

The retail-consumer packaged goods (CPG) industry has changed. The

challenging global economic conditions of 2000-2003 have required

enterprises to become more agile and adaptable, and to improve real-time

decision-making capabilities. Relying on instinct or traditional processes to




19

make decisions will not deliver the business results that financial markets

demand.

Today, competitive advantage in the retail-CPG industry depends on a

relentless drive to increase productivity and remove costs from operations,

prudent investments to deliver customer value, and precise execution to

provide consistency and quality. Leaders are consistently working to

improve the productivity and efficiency of their organizations, while

enhancing customer service and satisfaction. Delivering the right product

in the right quantity, location and pricerequires the ability to assess,

decide, and execute.

Management consulting firm Accenture conducted a study with 63 of

STORES Magazine' s top 100 publicly held globalretailers in 2000. The study

revealed that, in the last decade, only one-third of the retailers surveyed

were able to generate revenue growth above the industry average of 9.9percent and/or to generate stock price growth above the Standard and

Poor' s (S&P) 500 average of 13.7 percent. What did these successful

companies have in common? They achieved operational excellence using

innovative business methods and technology.

Brief overview about automotive sector

The auto industry is facing the most difficult market in half a decade with a

mixture of worry and determination, according to the latest KPMG survey

of top vehicle manufacturer and supplier executives. Unlike previous




20

downturns, this one seems likely to accelerate broad changes now under

way. The global car industry that emerges in several years could look quite

different from the recent balance of competitors, executives believe.

Highlights of the survey findings include:

• In the past 12 months, expectations of a return to healthy profit levels

have moved sharply outward, from next year to mid-decade.

• No part of the North American –based industry, with the possible

exception of dealers, is doing well. This is readjusting the balance among

industry players.

• North American –based makers will likely continue to lose global

market share to Asian companies, while European makers should hold

their own or slightly advance.

• To regain momentum, North American –based makers need to focus on

consumer needs and more compelling new-model design and

technology.• Consumer loyalty to brands and dealers will continue to decline.

• There is, nevertheless, considerable confidence that North American

makers and suppliers can overcome their difficulties.




21

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24

RESEARCH PARADIGM:

Any Research follows the Research paradigm that includes three

important

Stages

A TYPICAL RESEARCH PROCESS INVOLVES:

1. Identifying the problem/ opportunity and defining research

objectives

2. Developing the research design

3. Collecting the data (or information)

4. Process and analyzing the data (or information)

5. Presenting the research findings (or report)

PROBLEM

STAGE 1

METHOD

STAGE 2

SOLUTION

STAGE 3




25

DEVELOPING A RESEARCH DESIGN:

The marketing researcher develops research design, which

basically indicates the procedure and cost of conducting the

research study.

It contains:

�Information type

�Sources of data

�Research methods

�Sampling Plan

�Methods of contacts

�Data collection methods (i.e. Research Instruments)

Research Methodology undertaken for the project:

PROBLEM STATEMENT:

“Exploring BPO market for advertising and finance

industries-an exploratory study for ITC InfoTech”




26

Objectives

1. To collect key information on the Business travel

2. To build trend data on these issues

3. To determine Target Segment among Advertising industry

and Finance industry.

4. To identify key issues affecting business travel today

TYPE OF RESEARCH:

The research process adopted for the study is a typical Customer

Research process which is ideally exploratory and conclusive in

nature.

SAMPLING TECHNIQUE:-

Non-Probability Samples:

It isn' t always possible to undertake a probability method of

sampling, such as in random sampling. For example, there is not

a complete sampling frame available for certain groups of the

population e.g. the elderly; people who are attending a football

match; people who shop in a particular part of town. Another

factor to bear in mind is that many of the probability sampling

methods described above may mean that researchers would




27

have to undertake a postal or telephone survey delivery or

might be expected to go from house to house.

Advantages of non-probability methods:

• Cheaper

• Used when sampling frame is not available

• Useful when population is so widely dispersed that cluster

sampling would not be efficient

•

Often used in exploratory studies, e.g. for hypothesisgeneration

• Some research not interested in working out what

proportion of population gives a particular response but

rather in obtaining an idea of the range of responses on

ideas that people have.

SAMPLE DESCRIPTION:

The target population includes two parts namely:

Finance industry and advertising industry that fall under

fortune list of USA

Sampling Procedure: Convenience sampling

A convenience sample is used when you simply stop anybody in

the street who is prepared to stop, or when you wander round a

business, a shop, a restaurant, a theatre or whatever, asking




28

people you meet whether they will answer your questions. In

other words, the sample comprises subjects who are simply

available in a convenient way to the researcher. There is no

randomness and the likelihood of bias is high. You can' t draw

any meaningful conclusions from the results you obtain.

However, this method is often the only feasible one, particularly

for students or others with restricted time and resources, and

can legitimately be used provided its limitations are clearly

understood and stated.

Because it is an extremely haphazard approach, students are

often tempted to use the word "random" when describing their

sample where they have stopped people in the street, as they see

it "at random". You should avoid using the word "random"

when describing anything to do with sampling unless you are

absolutely certain that you selected respondents from asampling frame using truly random methods.

SAMPLE SIZE:-

The sample size is restricted to:

40 fortune US companies, which includes 20 companies from

finance sector and 20 companies from advertising sector




29

INSTRUMENTATION TECHNIQUE:

Structured Questionnaires and Telephonic interview sessions

have been used as instrumentation techniques to carry out the

work-assignment.

Since our research investigation is highly quantitative, we could

not Subject the data to rigorous statistical treatment. In

overview, the Qualitative research is as significant as

quantitative.

Primary Data collection:

Primary data collection refers to data collection through,

structured questionnaires from Finance and advertising fortune

companies.

Secondary Data collection:

This refers to indirect means of data collection through,

• Browsing through the Internet

• Company intranet

•

Newspapers• Journals, Travel Magazines

LIMITATIONS OF THE STUDY




30

1. The study is limited to fortune companies, and also it is

limited to US country only.

2. Language accent of U.S respondent was a barrier for in-

depth discussion.

3. Opinions of the findings may be biased because many

doubted that the study is done for ITC-InfoTech,

Bangalore.

4. Getting an appointment with the corporate travel manager

was a problem.

5. Some Corporate travel manager could not give out the

required information as it was thought confidential.

6. Mental framework of the respondents is a factor, which

can bias the results.

7. Research investigations are beset with Time and Resourceand constraints.

8. Research investigations are based on company information

and Information generated through companies response

and travel department responses.




31

Analysis

The following analysis were done

• Patterns for business trips: frequency, fare type, class of

travel

• Company travel policies, decision makers

• Main concerns when traveling

• Reasons for choosing a specific airline

• In-flight business facilities: preferences and willingness to

pay

•

Propensity to book via the Internet• Propensity to fly, Internationally and domestically

• Reasons for airline class preferences

• Recent bad experiences with an airline




32

• Use and satisfaction with Internet portals

• Spending on international business trips

• Spending on domestic business trips

1. Percentage of air travel in a month

AIR TRAVEL-FINANCE

0

20

40

60

80

100

Alabama

Allme

rica

AmSo

uth

Citizens

Fiserv, Inc.

H&R Block,

M&T B

ank

Nationw

ide

The Mutual of

Toll Brothers,

t

otal

COMPANY

PERCENTAGE

Internal%

External%

AIR TRAVEL- ADS

020

40

60

80

100

Cendant

Corporation

Viacom Inc.

Clear

Channel

Clear

Channel

Cox

Enterprises,

Experian

Information

Insight

Enterprises,

JELD-WEN,

inc.

Omnicom

Group Inc.

The

Reader's

C O M P A N Y

Internal%

External%




33

Inferences: From the above graphs we can infer that only 32.5%

of external air travel takes place in the finance industry where as

48.5% of external air travel takes place in advertising industry

Therefore ITC InfoTech can consider advertising industry as a

better target as percentage of external travel is more in this

industry as compared that of finance industry

2. How does travel booking occurs

Travel bookin occurs-FINANCE

65%

35%

Centralised

Decentralised




34

TRAVEL BOOKING OCCURS- ADS

90%

10%

Centralised

Decentralised

Inferences: As centralized the department is easier to tap the business thus about

90% advertising industries have a centralized booking solution as compared to a

finance industry, which is only 65%.There fore advertising industry is a potential

target market.

3. Do u have a separate travel department




35

TRAVEL DEPARTMENT - FINANCE

65%

35%

yes

no

TRAVEL DEPARTMENT - ADS

90%

10%Yes

no

Inferences: A separate travel department acts as a one-stop shop

thus ITC InfoTech can concentrate upon convincing single

department rather than doubling efforts and time which

otherwise is taken in case of decentralization.

Thus in this case 90% Advertising industry have a separatetravel department as compared to finance industry which hasabout 65% of separate travel department.




36

4. In-house, agency or online

CURRENT TRAVEL SOLUTION-FINANCE

57%30%

13%

AgencyInhouse

CURRENT TRAVEL SOLUTION - ADS

19%

62%

19%

agency

Inhouse

online

Inferences: Above graph indicates that only 30 % of finance

industries have in-house their travel solution whereas 62% of

advertising industry has in-house their travel solutions.

Therefore advertising industry has already experienced agency

solution and now moving on to in-house solution this indicate

that ITC InfoTech can easily ROI to the target market .




37

5. Do you have ARC code

ARC code

35%

65%

yes

no

ARC CODE- ADS

77%

23%

YES

no

Inferences: From the above graph we can see that 77% of

advertising industry has ARC code where as finance industry

has only about 33% in this case the ITC InfoTech can target

advertising industry ias they already have ARC code which is

very essential for off shoring the corporate air travel .

6. What is your Current GDS




38

CURRENT GDS-FINANCE

15%

8%

39%8%

15%

15% Amadus

Appola

Cyber

Galileo

World span

Saber

CURRENT GDS- ADS

49%

38%

13%

AMADUS

APPOLO

CYBER

Inferences: ITC InfoTech is more oriented towards Amadeus

and Apollo as they are tied up with Amadeus and Apollo. From

the above graph advertising industry is a better target as their

GDS matches with ITC’s choice.

7. Type of travel used/mode alternatives




39

TYPES OF TRAVEL MODE-FINANCE

51%

30%

19%

DRIVE

TRAIN

RENTAL CARS

TYPES OF TRAVEL MODe-ADS

27%

18%

55%

DRIVE

TRAIN

RENTAL CARS

Inferences: ITC is opting to tap the market for car rentals and

lemos also thus from the above graph its clear that advertising

industry is a better target.




40

8. How long associated with current travel solution

provider

ASSOCIATED YEARS- FINANCE

05

1015

20

Alabama

Allmerica

AmSouth

Citizens

F

iserv, Inc.

H&

R Block,

M

&T Bank

Nationwide

The Mutual

Toll

COMPANY

YEARS agency

inhouse

ONLINE

ASSOCIATED YEARS-ADS

05

1015

Cendan

Viac

om

Clear

Clear

C

ox

Experia

Insight

JE

LD-

Omn

ico

The

COMPANY

YEARS

agency

inhouse

ONLINE

Inferences: Longer the association tougher the task for change

over. As this involve not only financial but also emotional &

psychological risk. Almost the average year of association is

same for both the sector so in this case Advertising industry is a

better target.




41

9. Inclusive package inclination

INCLUSIVE PACKAGE-FINANCE

30%

70%

yes

no

INCLUSIVE PACKAGE- ADS

72%

28%

yes

no

Inferences: 72% of Advertising sector is more inclined to go for

inclusive package. This clearly indicates their cost cutting

objective. This issue can be considered for making a business

plan to Advertising sector




42

10. How many international business trips do you take

annually

INTERNATIONAL BUSINESS VISITS- FINANCE

0

500

1000

1500

2000

2500

Ala

bama Power

Allmerica

AmSouth

Citizens

Fiserv, Inc.

H&R Block,

M&T Bank

Nationwide Life

The Mutual of

Toll Brothers,

COMPANY

NO OF TRIPS ANNUALLY

international

INTERNATIONAL BUSINESS VISIT-ADS

0

500

1000

1500

2000

2500

Cendant

Viacom Inc.

Clear Channel

Clear Channel

Cox

Experian

Insight

JELD-WEN,

Omnicom

The Reader's

COMPANY

BUSINES

S VISITS

international

Inferences: Annual international travel of advertising sector is

more than finance sector therefore advertising sector can be

better target customer as compared to finance sector.




43

11. How many domestic business trips do you take annually

DOMESTIC BUSINESS VISITS -FINANCE

0

200

400

600

800

1000

1200

Alabama

Power

Allmerica

Am

South

C

itizens

Fise

rv, Inc.

H&R

Block,

M&T Bank

Nationw

ide Life

The M

utual of

Toll Brothers,

COMPANY

NO OF TRIPS

domestic

DOMESTIC BUSINESS VISITS-ADS

0

500

1000

1500

2000

2500

Cendant

Viacom Inc.

Clear Channel

Clear Channel

Cox

Experian

Insight

JELD-WEN,

Omnicom

The Reader's

COMPANY

ANNUAL VISI

TS

domestic

Inferences: Annual domestic travel of advertising sector is more

than finance sector therefore advertising sector can be better

target customer as compared to finance sector.




44

12. Air spent annually

ANNUAL AIR SPENT-FINANCE

02468

10121416

Alabama Power

Allmerica

AmSouth

Citizens

Fiserv, Inc.

H&R Block,

M&T Bank

Nationwide Life

The Mutual of

Toll Brothers,

COMPANY

MILLION $

total

ANNUAL AIR SPENT - ADS

0

5

10

15

20

Cendant

Viacom Inc.

Clear Channel

Clear Channel

Cox

Experian

Insight

JELD-WEN,

Omnicom

The Reader's

COMPANY

M

ILLION $

Total

Inferences: Annual spent of advertising sector ($ 237m) is more

than finance ($142m) therefore advertising sector can be better

target customer as compared to finance




46

14. Factor concerned while traveling

FACTORS CONCERNED WHILE TRAVEL -

FINANCE

65%

14%

21%

cost

connect

time

FACTORS CONCERNED WHILE TRAVEL

61%21%

18%

cost

connectivity

time

Inferences: Cost factor is given maximum importance in both

the sector.




47

15. Turnaround time

TURN AROUND TIME - FINANCE

05

1015202530

Alabama

Allmerica

AmSouth

Citizens

Fiserv, Inc.

H&R Block,

M&T Bank

Nationwide

The Mutual

Toll

COMPANY

HOURS

time

TURN AROUND TIME - ADS

0

10

20

30

40

50

60

Cendant

Viacom Inc.

Clear Channel

Clear Channel

Cox

Experian

Insight

JELD-WEN,

Omnicom

The Reader's

COMPANY

HOURS

time

Inferences: Booking turn around time of finance is more as

compared to advertising sector therefore if a solution that can

reduce a turnaround time significantly Could be an effective tool

for better service encounter.




48

16. How hotel booking takes place

HOTEL BOOKING - FINANCE

20%

65%

15%

AGENCY

DIRECT

ONLINE

HOTEL BOOKING - ADS

65%10%

25%

AGENCY

DIRECT

ONLINE

Inferences: Advertising use the agency channel for hotel

booking so cost advantage can be better explained for this sector

as compared to that of finance sector.




49

17. Annual spent hotel

ANNUAL CAR SPENT-FINANCE

01

23

45

Alabama Power

Allmerica

AmSouth

Citizens

Fiserv, Inc.

H&R Block,

M&T Bank

Nationwide Life

The Mutual of

Toll Brothers,

COMPANY

MILLION DOLLORS

CAR(m$)

ANNUAL HOTEL SPENT-ADS

0

2

4

6

8

10

Cendant

Viacom Inc.

Clear Channel

Clear Channel

Cox

Experian

Insight

JELD-WEN,

Omnicom

The Reader's

COMPANY

MILLION $

HOTEL (m$)

Inferences: Advertising sector spends more on hotel therefore a

integrated solution for Air, Car & Hotel booking would be costeffective solution to this sector.




50

18. Annual car spent

ANNUAL CAR SPENT-FINANCE

0123456

Alabama Power

Allmerica

AmSouth

Citizens

Fiserv, Inc.

H&R Block,

M&T Bank

Nationwide Life

The Mutual of

Toll Brothers,

COMPANY

MILLION $

CAR(m$)

ANNUAL CAR SPENT-ADS

01

23456

Cendant

Viacom Inc.

Clear Channe

l

Clear Channe

l

Cox

Experian

Insight

JELD-WEN,

Omnicom

The Reader's

COMPANY

MILLION $

CAR(m$)

Inferences: Advertising sector spends more on Car therefore a

integrated solution for Air, Car & Hotel booking would be cost

effective solution to this sector.




51

19. Travelers choice of stay in Hotel

TRAVELLERS CHOICE OF HOTEL -FINANCE

47%

21%

32%

Bread & breakfast

Full service

Executive class

TRAVELLORS CHOICE OF HOTEL -ADS

17%

44%

39%Bread & breakfast

Full service

Executive class

Inferences: Advertising sector prefers more full service trips as

compared to Bread & breakfast and executive class. This

displays there propensity to spend is more as compared to

finance sector.




52

20. Satisfaction level w.r.t current travel solution

SATISFACTION LEVEL - FINANCE

0

1

2

3

4

5

6

Ala

bama Power

Allmerica

AmSouth

Citizens

Fiserv, Inc.

H&R Block,

M&T Bank

Na

tionwide Life

T

he Mutual of

Toll Brothers,

COMPANY

LEVELS

LEVEL

SATISFACTION LEVEL

0

1

2

3

4

5

6

Cendant

Viacom Inc.

Clear Channel

Clear Channel

Cox

Experian

Insight

JELD-WEN,

Omnicom

The Reader's

COMPANY

SATISFACTION LEVEL

Series1

Inferences: If a customer is satisfied with the services provided

by the vendor then it becomes a tougher to shift the customer

from previous vendor to new vendor. Here, finance satisfaction

level is more than advertising sector so it’s tough to tap them for

outsourcing.




53

21. Conflicting area

CORPORATE TRAVEL ISSUE - FINANCE

14%

20%

9%11%

46%

internet

connectivity

quality

unplanned

delay/time

CORPORATE TRAVEL ISSUES -ADS

33%

39%

28%

internet

connectivity

quality

Inferences: Corporate travel issues are very informative as this

can give ITC InfoTech more opportunities to enter the target

market through minimizing these issues, which the sectors are

facing. If ITC InfoTech succeeds to overcome these corporate

issues then they can tap the potential sector tactically.




54

Hypothesis testing

Four hypotheses has been tested based on the variable noted

below

¾Annual Air Spent

¾Annual Car spent

¾Annual hotel Spent

¾Turnaround time

¾Satisfaction level

This has been calculated and assessed for Automotive & CPG

industry. Result indicate a strange sequence, while the amount

spent on Air, hotel & car are not significantly different by its

mode. At the same time satisfaction level derived and the

turnaround time are relatively low & high respectively.

This result cause for special effort to increase the

satisfaction level making an assessment of end user requirement.This interest turn around time to be reduced by half (our

assessment) to make the customer satisfaction level higher then

what is today!! The organization has to adopt twin strategy to

reduce turnaround time and increase satisfaction level to make

proposition viable.

How far this viable remains is a matter of speculation. Given thechanging scenario the company has to restore to expansion

mode in deriving service value and in providing in-depth level

of customer satisfaction




55

Travel Industry Supply Chain Evolution

¾Traditional Data center model and systems

¾Traditional Data center model and systems withadditional complexity

¾Traditional Data center model and systems withadditional complexity

Airlines

Consumers

&

Corporations

Airlines

Consumer

&

Corporatio

Travel

Agents

Airlines

Co

Cor

Travel

Agents

Computer

Reservati

on system

(CRS)




56

¾Traditional Data center model and systems withadditional complexity –Multi-host

¾Entrance of Distributed technologies!

Suppliers CallCenterSupplierWebsiteOrbitz

Travel

Suppliers

Co

Cor

Travel

Agents

Global

Distributi

on system

(GDS)

Travel

Suppliers

Co

Cor

Travel

Agents

GlobalDistributi

on system

(GDS) Internet

Travel

Agents




57

¾Proliferation of Open Systems!

Suppliers CallCenter

SupplierWebsiteOrbitz

¾Entrance of GDS “substitution” technology!Suppliers CallCenterSupplierWebsiteOrbitz

Travel

Suppliers

Co

Cor

Travel

Agents

Global

Distributi

on system

(GDS) InternetTravel

Agents

Travel

Suppliers

Co

Cor

Travel

Agents

GlobalDistributi

on system

(GDS) InternetTravel

Agents

• Cor

• Direct Connect

• Direct Connect




58

SWOT ANALYSIS

STRENGTHS

8

BRAND NAME

¾ TECHNICAL

SUPERIORITY

¾ ITH ASSOCIATION

WEAKNESS

9

METHOD OF ACCESS

TO US CLIENTS

9

PROCEDURES

9

REGULATIONS

OPPORTUNITIES

9

COUNTRY NAME

9

LARGE UNTAPPED

MARKET

9

OUTLOOK OF

FORTUNE

9

COMPANIES

CHANGING

9

COST CUTTING BY

FORTUNE

COMPANIES

THREATS

¾ ETHOCENTRIC

BEHAVIOUR OF

AMERICAN

COMPANIES

¾ FINANCIAL RISK

¾ PHYCOLOGICAL RISK

OF CLIENT




59

CONCLUSION

After understanding advertising and finance industries. We can

conclude that ITC InfoTech can Target the advertising sector.

From the analysis we can infer that advertising industry is more

profitable as compared to that of Finance industries.

Thus ITC InfoTech can grab advertising sector as their target

segment towards launching their travel BPO.

RECOMMENDATIONS

• Organize a corporate meet and inform about off shoring

benefits

• Companies other than US can also be targeted

BIBLIOGRAPHY

Book:

¾Kotler Philip, Principles of Management …………… PHI

2001

¾Marketing of Services by SN Jha, Himalaya Publication




60

Journals:

¾IBM survey on Travel & GDS 2003

¾Journal for Corporate industry

¾Forbes 2003 edition

Websites:

www.itcinfotech.com

www.itcportal.com

www.indiainfoline.com

www.google.co.in

www.hoovers.com

www.fortune500.com

www.orbitz.com

www.btitravel.com

SAMPLE DATABASE




62

meeting)

• External company business (sales call, visit customers or

vendors)

2. How does travel booking occurs?

• Centralized

• Decentralized

3. Do you have separate travel department? Yes / No

4. What’s your company’s current travel solution?

I. Agency

II. In-house

III. ONLINE

5. Do you have ARC code?Yes /No

6. Which is the current GDS of your company?

• Amadeus

• Abacus

• Galileo

• Multi GDS

• Saber

• World span

• Other




63

7. Number of travel agencies used?

• One

• Two

• Three

• None

8. Type of travel used/mode alternatives?

• Drive

• Train

• Car rental

9. Since how long are you associated with your travel solution

provider?

10. Do you look for an inclusive package (Air/car/hotel) in your

corporate travel?

11. How many international business trips do you take

annually?

12. How many domestic business trips do you take annually?

13. What is your companies annual air spent?

14. What is the class of travel among the below mentioned

class?

15. Rank these factors, which you consider, are of main concern

while traveling?

• Cost of travel




64

• In-flight business facilities

• Amount of time it takes to complete the travel

• Connectivity

• The level of convenience

16. What is the turnaround time between booking and

response?

17.What is your company’s annual hotel spend?

18.How hotel booking takes place?

• Agency

• Direct

• online

19.What is your company’s annual car spend?

20. What % of travelers opts to stay in below mentioned class?

• Bread & breakfast**

• Full service• Executive class

21. Please rank your satisfaction level w.r.t current travel

solution?

1 2 3 4 5

22. Please rank in order of your preference most conflicting

areas encountered till the date?



• Issues with e-ticketing & automated check-in

• I n-flight business facilities

• Connectivity

• Quality of service delivery

• Unplanned Schedule

• Delays

• Time/boredom

• Others

Varna-0358-Corporate Travel BPO ITC

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