Kale banks on technology to save cost

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Kale banks on technology to save cost

Technologies such as virtualization, VoIP and video conferencing help the company reduce organizational cost

Tuesday, May 05, 2009

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MUMBAI, INDIA: The global recession has cast its shadow on almost all the sectors. And the IT industry is said to be one of the worst affected areas. So is there a way to at least withstand the financial tsunami rather than getting washed away by it? Yes, says Kale Consultants Limited.

Kale, one of the leading solutions provider for the airlines, logistics and travel (ALT) industry, has come up with various innovative techniques to effectively manage an organization's expenditure during the slowdown. It aims to elevate the level of efficiency without actually increasing the cost.

"Ours is a multi-location organization with three offices situated in Pune, Thane and Mumbai; hence it demanded frequent telephonic communication on a regular basis for internal work purpose," said Mahesh Shah, Hosted and Business Critical Functions' head - Kale Consultants.

"We have a number of international clients and customers who require international calling for communicating with them. Hence, the telephone charges including landlines and mobile phone bills were reflecting high in organizational expense," he added.

In an effort to reduce the telecommunication cost, the company has unified its communication modes using innovation. It started to used the closed user group (CUG) mode for mobile and landlines communication to have an effective cost control.

Shahs added that the company has done some programming with the board line system to reduce costs on local calls.

Besides, the company has also set up video conferencing facilities in various offices to address the travel and lodging cost woes to a substantial level.

During the past four quarters, Kale has saved over 35 per cent on the communication front, especially the use of landline and mobile phone.

They are also extensively using Voice over Internet Protocol (VoIP) for international as well as local communication. "We now usually communicate with international customers and clients through Internet. But we have to use the telephones to communicate with the countries which still do not have the VoIP facility," says Shah.

Shah suggests that these innovative methods not just effectively control the telecommunication costs but also provide simpler and faster mode of communication.

Apart from software consultancy, the company is into software development and business process outsourcing (BPO). With such business structure, the company had 120-odd servers across locations to support its business.

However, Kale's major concern involved the cost of maintaining the servers including the power consumption and room space. "We prepared a strategic plan to consolidate the server numbers that helps reduce the power consumption, lowers energy charges and try to create surplus saving for future," Shah suggests.

As per the plan, Kale implemented virtualization technology to consolidate server counts in a phased manner. For the year 2008-09, it has been successful in consolidating 30 per cent servers and the company expects savings up to 40 per cent on the power and maintenance.

Shah explained that old servers consuming more power were replaced by efficient servers, which reduced the power usages and server space along with annual maintenance cost (AMC). For the year 2009-10, the company has plans to add further 20 per cent in server consolidation, which will be a net gain of 50 per cent.

On server consolidation Kale expects an investment pay back in less than 15 months. Moreover, the innovations have increased overall computing capacity by 30 per cent, it adds.

"The server consolidation has helped to reduce power load of 8KV and this amounts to an average savings of Rs 75 per hour," said Shah. And this is a huge savings for the company, as far as the expenditure on the power consumption is concerned.

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