Smart Outsourcing
    Category: Entrepreneurs By : Ardian Wibisono Read : 2030 Date : Sunday, July 10, 2016 - 20:35:45

    Outsourcing is a stigmatized term in Indonesia. Labor unions often demand such systems to be abolished because they don’t provide workers with sufficient benefits and protection. However, in the global economy, business service outsourcing (BSO) is a multibillion-dollar industry, with India and the Philippines as major players. So far Indonesia has been largely absent from this sector.

    However, PT Abdi Teknologi Informasi or better known as ATI Business Group, hopes to change that. It is proving that Indonesia has potential to be a significant player in the outsourcing business. Established in 2001, ATI has gained tremendous traction in the past six years, growing from just 25 people in 2010 to over 500 employees currently—almost all of them are fixed employees—and increasing its business at an 80% CAGR.

    ATI’s main business offers a specific service for the travel industry called fare loading. Despite its high-tech image, global airlines still do many things the conventional way, including publishing their fares on paper. Thus, to make these fares available worldwide, the printed fares needs to be loaded to the Washington based Airline Tariff Publishing Company (ATPCO) system that publishes the latest airfares for more than 500 airlines multiple times per day and to the three leading global distribution systems: Amadeus, Sabre, and Travelport.

    In fact ATI is the largest global user of Travelport’s share filing system. ATI serves clients from 19 countries around the world, with a focus on Australia and Asia including Cathay Pacific, Singapore Airlines, and Qantas. In February, ATI partnered with its first local client, the state-owned flag carrier Garuda Indonesia that previously outsourced its fare loading to India. Aside from airlines, ATI also provides fare-loading services for hotels and cruises.

    “Outsourcing is a tremendous opportunity for the Indonesia market, we feel that Indonesia has a number of assets that have not been represented well in this sector today and we are trying to make a difference,” says Felix Hidayat, chief business officer and director of ATI.

    Felix says that airlines are a very capital-intensive business that makes good money in good times, thus it could afford to have a pool of staff to do their manual and labor intensive work, such as fare loading, revenue management, and call centers. However, in bad times, such as when oil prices go up or the economy is not performing, airlines also need flexibility to survive—and that’s where a BSO company can help. ATI offers a unique skill set since each fare distribution system has a different interface. ATI also has to handle the specific terms, such as discounted rates that apply during a special time period (or has blackout dates) or available for a certain type of traveler or destinations. Thus, ATI only hire staff with background and knowledge in the travel industry, like tourism school graduates or those who’ve worked in a travel firm.