01 Mar 2012 Chennai RTSC TTHDEG ISU Head Presentation (1)

1 Copyright © 2011 Tata Consultancy Services Limited

ISU Head, Travel, Transportation & Hospitality ISUTriple ISO audit

Jan - Mar 2012

TCS Internal

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Travel, Transportation & Hospitality (TTH) ISU

300Million USD

Unit

20+Years of Experience

50+Global market

leaders as clients

4000Experienced consultants

First• Airline BPO services

• Offshoring of Core PSS support and development

• iPad application for Airline Crew

Largest• financial transformation

in Hospitality • SOA implementations in

Airline industry• Enterprise Transformation

exercise in shipping industry

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Our Customers are Global Leaders

AirlinesAmerican Airlines

Delta AirlinesUnited Airlines

Southwest AirlinesHawaiian Airlines

Aero MexicoLan

GDSTravelport

Car RentalsAvis

HospitalityHilton Worldwide

MariottWyndham Hotels

RCICarnival Cruises

ShippingNYK Lines

LogisticsUTi Logistics

UPS

TransportationBNSF

MatsonDay & Ross

AirlinesBritish Airways

LufthansaVirgin Atlantic

KLM

Car RentalsEuropcar

Swiss InternationalAustrianFinnair

Star Alliance

ShippingAP Moller Maersk

Zim Shipping

Cargo HandlingCargotec

TransportationNetwork Rail

LogisticsDP DHL

Kuehne+NagelAgility Logistics

Panalpina

AirlinesSingapore Airlines

QantasCathay Pacific

Malaysian Airlines

AirlinesSaudi Airlines

HospitalityGinger Hotels

Taj HotelsClub Mahindra

LogisticsDIESEL

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Offerings across the Travel Enterprise Value Chain

CUSTOMER CENTRICWEB|MOBILE|KIOSKS|CALL CENTER|CRM|

LOYALTY

CORE SYSTEMSRESERVATION|CHECK-IN|PMS|INVENTORY|

PRICING

PLANNING & OPERATIONSPLANNING|REV MGMT| CREW|FLEET|

INVENTORY | FUEL

ENTERPRISE BACKBONEPROCESS| SERVICES|EVENTS|CONTENT|

TRANSFORMATION

BACK OFFICEFINANCE|HR|PROCUREMENT

British Airways, Singapore Airlines, Qantas, Avis, Carnival, United, KLM, American, Delta, Star

Alliance

Intelligent Booking Engine, Agent Desktop, Air Buddy, Airport

Assistant, Social CRM, CuBuzz, Listening Platform, TCS RewardZ,

AirBIDSBritish Airways, Star Alliance, SkyTeam, United, Wyndham,

Saudi AirlinesTravel Services Platform

Customers Asset Portfolio

SIA, United, British Airways, Travelport, Ginger, Club

Mahindra, Mariott, LufthansaAltea Migration Function Bible, TPF

CoE

Hawaiian, United, British Airways, Qantas, Austrian,

Swiss Air, Finnair

Crew Power, SWIFT MRO, CRAFT (Crew Planning), Workforce

Planning System,

Hawaiian, British Airport Authority, Hilton, Ginger, Club Mahindra, Carnival, Starwood

Platform/SaaS

Technology Platforms(Teletypes, Electronic Commerce, Communications (SNA, LU6.2, HTH, EDIFACT, MATIP, TCP/IP), Share Infrastructure Platforms (CUSS, CUTE), Integration Platforms)

Industry specific technology expertise across…

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End-to-end solutions across levels of maturity

Single Services

Multi Services

End-to-End

Transformational

• Application Consolidation

• Process Standardization• Continuous Productivity

Improvement

• Integrated service delivery

model• ADM/IT

Optimization - technology

consumption, storage and DB consolidation

• Integrated SLAs• Guaranteed cost

saving in IT Opex

• IT-IS-BPO Integrated

service delivery model

• IT Transformatio

n• IT enabled

business process

improvement• Guaranteed saving in Opex

• Delivery model with standardized process delivery

• Labor and Non Labor savings -

Process efficiency, inventory Reduction

• Risk-Reward for business

improvement• Strategic initiativesAPPLICATION SERVICES

DEVELOPMENT | SUPPORT | ASSURANCE

BUSINESS PROCESS SERVICES

F&A| HR| SCM | PRICING SUPPORT | REV. ACCOUNTING | LOYALTY | CREW | HOTEL DB

| ANALYTICS

INFRASTRUCTURE SERVICES

REMOTE MGMT. | HELP DESK | DESKTOP | NETWORK | EUCS

SPECIALIZED SERVICESBUSINESS INTELLIGENCE |

ENGINEERING

TRANSFORMATIONAL SERVICES

BUSINESS | PROCESS | ENTERPRISE IT | INNOVATION

SERVICE STACK

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Thought Leadership – Innovation Lab led Initiatives

Airline Innovation 1.0 - Customer Experience Management

Airline Innovation 2.0 - Enable

Airline Innovation 3.0 - Measure & Optmize

Airline Innovation 4.0Transportation Innovation 1.0Hospitality Innovation 1.0

2006 2007 2009 2011

Technology ExplorationHTML5, Smartphone Apps, Near-Field

Communications, Business Process Mining

Domain Innovation Focus Areas

Airlines – Analytical Cockpit, Agent App, SmartApps for Travel, Queue

Avoider

Transportation – eCommerce, Multi-Channel Access, Real-time slot capacity mgmt., Track & Trace

Hospitality – Contact Less solutions, On property CRM, On Demand services

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Frameworks and solutions ready for real world challenges…

Key Solutions from the Innovation Lab

First of its kind Travel Services Platform that enables airlines to decouple customer experience from back-end

systems

Next-Gen Internet Travel Booking Engine using Adaptive Business Process to recognize customers based on their

system behavior

Natural Language enabled, context-aware widget application to simulate “human” experience in web and

kiosks.

Context-aware Agent Desktop that helps enhance customer experiencing by empowering agents with

customer relevant “pushed” content.

Mobile solutions that look at the complete travel chain including pre-departure, departure, in-transit and support

services

Real Insights

Maxi Marketing

Travel Concierge

Intelligent Desktop

Crew Power

Travel Services Platform

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TTH ISU Profile

Delivery Center No of Projects

TCS - Chennai 112

TCS - Lucknow 2

TCS - Mumbai 42

TCS - New Delhi 49

TCS - Pune 7

Cluster No of Projects

Transportation EU UK 45

Transportation NA 18

Travel Airlines NA 39

Travel EU UK 79

Travel Non-Airlines NA 39

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TTH Structure – Conceptual View

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1010

TTH Organization Units and Responsibilities

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TTH ISU - Vision

– Be a Billion Dollar ISU by 2015

– Acquire all the Top 5 customers globally in each sub vertical

– Be the Recognized Leader in each sub vertical

– Be a trusted and sought after Unit by the associates, customers and all stakeholders

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TTH ISU Ambition

FY10 FY11 FY12 FY13 FY14 FY150

200

400

600

800

1000

1200

152

200

290

410

570

770

60 80110

150190

230212

280

400

560

760

1000

ISU ROW TTH Total

33%46%

39%

32%

40%

42%

36%

32%

34%38%

33%44% 30%

27%21%

To be a $1 Billion service provider for Travel, Transportation & Hospitality

Customers by 2015

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FY 13 Business Planning - Key Considerations

FY13 Priorities

MarketCustomerIntern

al

• TTH TCV until Q3,2011 was $4.6 billion ($8.2 billion in 2010)

• FY 12 pipeline lower than that of FY11 by about 16.8%

• TTH Market is projected to grow to $41 Bn at 5.3% in 2012

• IT IS and BPO represent the largest deals contributing to 83% of contracts

• Market whitespaces exist in N.A and UK MM; Good growth opportunities in transportation with enough head room

• Airlines are expected to have lower growth in 2012 (6.42% YoY compared to 8.7% Y-o-Y last year)

• US Hotels industry is will have stagnated growth - 7.5% in 2012 (7.4% in 2011)

• Good growth in Transportation industry at 10% per year in 2012 (7% growth in previous year)

• Key trending topics: Mobility, Big Data, Green, Integration, Visibility

TTH Internal Inputs:• FY12 Y-o-Y growth at

35% compared to ~40% in FY11

• Re-organized unit to make it agile, closer to customer and future ready

• Creation of 2 dedicated practices for each value chain – Travel & Transportation

• Low attrition, rapid growth

• Changing competency requirements for market

• Red projects impact margins, customer experience

TCS Leadership Inputs: • Financial : Revenue

leadership, delivering non-linear commitment;

• Customer Centricity - right org structure to deliver, revenue band movement;

• Competitive Positioning – constantly increase distance from competition on all parms;

• People Development – control attrition;

• Physical Infrastructure - Tier 2 / Tier 3 leverage

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FY 13 | Key Business PrioritiesFocus Transportation– Increase Transportation revenue share from 26% to 35%+Transportation sub-verticals IT market have relatively higher and sustained growth rate than Travel sub-verticals

Focus Horizontal – Double current ASU and BPO revenuesASU is the fastest growing horizontal for TTH and BPO most mature and one of largest; TTH BPO growth rate slower than other verticals since 2008

Focus Solutions – Verticalize key customer themes: eCommerce, Mobility, Transport Mgmt. SolutionsLeverage dedicated practices for Travel & Transportation value chains to create assets and enhance thought leadership

Focus Key Account– Leverage Full Service Play to increase Wallet Share and non-linear solutions/assets to increase MindshareCreation of dedicated practices for Travel & Transportation value chains will help sell assets and improve mindshare; Create at least 1 $50M accounts and 3 $25 MN accounts

Focus Strong Delivery Capabilities– No RED projects; Build market-relevant and skilled technical, functional and business teamsImprove delivery & governance rigour through formation of dedicate Delivery & Operations team at all locations

Umbrella theme : Focus

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FY 12 – Revenue and Margins

Parameters What We Said What We DeliveredRevenues ($ MN) Q1: 62.43

Q2: 67.53Q3: 72.51Q4: 77.51 FY12: 280.00

Q1: 64.38Q2: 72.68Q3: 79.07Q4: 77.73FY12 293.86

Gross Margins (%) Q1: 52Q2: 52Q3: 52Q4: 52

Q1: 48.96Q2: 51.38Q3: 53.35Q4: 53.55

NOTE: Revenue in Mn USD

Revenue Growth FY'11 FY'12 (Beacon) FY'12(E) YoY %TTH ISU 203.3 280.0 293.86 43.1%

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FY11-12 Customer Satisfaction Index

TTH is the TCS Benchmark in Customer Satisfaction - We are the ISU with the highest CSI among units having the highest CSS coverage of customers

CSS CoverageCSI

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Customer Satisfaction – Projects with 100%

• CARNIVAL - Launch Pad Support

• Princess Cruises - Web Applications Support - PCL

• BNSF- CONSULT SUPPORT 10-11

• BNSF- MAPS App Maintenance & Support

• BNSF- TPI/EVIC/GEOWIN - BNSF Off.

• Travelport/Worldspan - TPF F&P Maintenance

• Travelport - Rapid Reprice – Offshore

• Travelport- IBS Development & Maintenance

• American Airlines- AA - eVIP OA Support

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Lifeline 2011-12 – TTH ISU Satisfaction Index

2008 2009 2010 201150%55%60%65%70%75%80%85%90%95%

100%

81%

76%

81%80%

TTH Lifeline Trends

TTH Average

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FY11-12 Associate Satisfaction

The ASI figures for all major ISUs were within a close range (between 70.8 to 71.89),

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FY11-12 Attrition YTD %

LS

BFS 04 GE

Ent S

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Hi Tec

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BFS 01

NGM India ER

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BFS 0

2

Telec

omIN

S 01

BFS 03 Gov

tMFG TT

H

Retail &

CPGM &

E

INS 0

20.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

12.74

10.51

9.638.97

8.47 8.39 8.20 8.13 7.94 7.89 7.82 7.657.05 6.74 6.68 6.62

6.02 5.91

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TTH Quality Dashboard – Project health

Metric Details

Metric Name Unit Target2011-AUG

2011-SEP

2011-OCT 2011-NOV

2011-DEC

2012-JAN

On Time Delivery % > = 99 100 100 92.03 91.87 94.44 97.4Bad Fixes % 0 0 0 0.03 0 0 0Capability Effort Slippage % 100 100 100 95 91.3 85.51 SLA Compliance % > = 95 97.06 96.96 96.67 98.03 98.61 97.35Defect Free Deliverables % >=99 100 100 100 98.86 100 100TDCE % > = 95 100 100 100 94.64 100 100On Budget (milestones) % 100 100 100 95 97.83 92.75 97.83On Budget (project-end) % 100 100 0 100 Acceptance Defect Density Ratio 0 Workaheads (Contractual) % < 5 1.33 1.3 1.26 1.36 1.31 1.74Audit Compliance % > = 90 96.15 100 100 96.88 100 71.43PMR Compliance % > = 90 94.12 95.65 83.33 100 97.83 95.12Customer Complaints # 0 0 0 0 0 0 0Customer Reds # 0 0 1 1 1 0 0TCS Reds # 0 0 1 1 1 0 0

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TTH PDI Trends

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FY12 Balanced Score Card for TTH

Perspective ISU BSC Parameters Unit Freq Target Actuals

Financial

Total Revenue INR M 100% of Target Achieved% Gross Margins % M 55% AchievedDays Receivables Days M 30 days Qualified Pipeline INR M As per Target AchievedOrder Book Value won this FY INR M As per Target Achieved

YTD Win Rate % M85% Existing, 70% New Achieved

% Increase in Annuity Business % Y 50%

Stakeholder

Customers acquired (Global Top 5) # HY 1 large deal/BU

Schenker, Mariott, UTI, Europcar

Customer Satisfaction Index Index HY 90% 90%

Business Advisor Status No. Y 2 per BUAvis. BA, Carnival, Hilton

No of Analyst Interactions No. Q 2 5Additional Corporate KPIs

Non Linear Soln Sales No. Y 1 customer/ offering AchievedNumber of Full Services Accounts No. Y 2/BU

HA, Star, Carnival, Avis, NYK, Travelport

Internal Process Deployment Index % M 0.85 0.8L&G Associate Satisfaction Index Index Y 76% 71

Attrition (Overall, YTD %) % M 8% 6.7%

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Awards/Customer Appreciations

“Thank you for driving this project. As usual you were proactive every step of the way. It is always a pleasure working with you. Thanks,”

Rashi Mehta, Supervisor eCommerce, Carnival

“I would like to thank everyone for the hard work in the support of making this DR exercise a successful one. ..you all were very instrumental in making this a successful exercise. I greatly appreciate the perseverance every one had to make this work. I am proud and it has been an honor to work with each and every one of you. Thank you”

Peter Bonacasa, Manager, IT DR Avis Budget

“Congratulations to all who have worked on this over the past 18 months or so ! It has been a considerable leaning experience for all of us. I have been particularly impressed with the professionalism, co-operation & 'can-do' attitude of all involved. Thanks”

Robert Jonh Milton (GSIS PM), APM

“Go live was successful and the business is very happy..I would like to personally thank you for your performance and involvement..It was a pleasure to work with you. Great reactivity, patience with Europcar’s team and your professionalism, have been omnipresent along the project. Congratulations”

Philippe.you-kim, Europcar Project Manager

“I know that being off site can be hard some times when you do not get to hear feedback. So, I wanted to take a moment to share some positive feedback from the user community regarding your hard work on the GATES project so far. Please share with the team that the users do appreciate their hard work!”

Chris Bailey, Matson

“You guys have been doing such an awesome job. You have been going even beyond what has been asked of you”Bob Stephens,Sr. Software Engineer, SWA

“I was particularly impressed by how the differing components of the wider team, employees of IBM, TCS and ML IT, worked together as a true team, including working hard together to solve issues that arose during the late nights and early mornings. The resolve, dedication, effort and technical skill of all involved in this, the most complicated technical upgrade I have ever been involved with, was remarkable. This really was a job well done ! Congratulations and thanks to all”

Jon Freeman (ML DM APM

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Improvements and Best Practices

Process Improvements made in the last one year:

– Restructuring the TTH Structure to focus on key and new priorities– Focus on Critical Projects/Complex engagements– Sales and PreSales Process– Focus on rigorous Contract Review

Best Practices Shared/deployed in last one year:

– BP Deployed: HR Best practices (Associate Motivation Activities), DEG Best Practices (Security Mgt, DAG – Contract Review process)

– BP Shared: Sales Best Practices (SWA), Best Practices in Benchmarking, Dashboards in PI and BCP (DEG)

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Competency & Learning

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Thank You

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Extra Slides

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FY 12 | A Recap

1 Penetrate Global Top 5 in each vertical

2Focus on Non-Linear Growth- Travel Services Platform- SWIFT MRO

3 Enhanced Portfolio Mix- Increase annuity business by at least 20%

4 Key account focus through full service play to increase wallet share

5Demonstrate Thought Leadership on key focus areas - eCommerce, Mobility, BI/Analytics, Transport Mgmt, Green

6Build a highly competent associate base – Technology, Domain, High-end consulting, Future Leaders

FY12 Priorities Achievement Status

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FY 13 | On Road to Our AmbitionsIn USD FY10 FY11 FY12 FY13 FY14 FY15ISU 152 200 290 410 570 770ROW 60 80 110 150 190 230TTH Total 212 280 400 560 760 1000TTH YoY 32% 43% 40% 36% 32%ISU YoY 32% 45% 41% 39% 35%RoW YoY 33% 38% 36% 27% 21%

In INR FY10 FY11 FY12 FY13 FY14 FY15ISU 6518 8576 12435 17581 24442 33018ROW 2573 3430 4717 6432 8147 9862TTH Total 9091 12006 17152 24013 32589 42880TTH YoY 32% 43% 40% 36% 32%ISU YoY 32% 45% 41% 39% 35%RoW YoY 33% 38% 36% 27% 21%

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FY 13 | Guidelines for Growth Planning Ambitious band movement for at least 2 accounts in every band;

Travel accounts need to now surge ahead, Need to acquire large Transportation customers in NA and Europe

Large, stable accounts should anchor for margin improvements

Sub $ 1-2 Mn accounts should target at least 200% growth

ASU should reach $ 5 Mn in every Business, Mobility should be at least 1 M USD for every Travel Account

One horizontal BPO deal in every Business Unit; Single out key candidate accounts

Identify key competitors for your business and keep them off at all costs