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BANGALORE, India - Dec. 17, 2013 - PRLog -- Indian IT-ITES sector has more 1,000 companies using 1 lakhs cabs to pick and drop 10 lakh employees daily. The companies spend more than Rs 5,000 cr (approx 1B USD) per annum on employee transportation! This spend is more than the revenues of 90% of the Indian IT-ITES companies. So, it is very important for companies to know if they are paying right for the transport service. For this it is very important to define “right”. The two important parameters to define right are:

1) Have I chosen the right billing model with my cab vendor,

2) Is my cab usage data (time, km) reliable. In this letter we will talk about the first part i.e. the billing model.

The following billing models are prevalent in the “employee transportation” industry:

Kilometer Rate per kilometre is agreed for avehicle type for e.g. Rs 7 per km for Indica. Company has to pay for total number of kilometres run

Package It is similar to kilometre model, however there is a minimum guarantee provided to the cab vendor. For e.g. Rs 30,000 for 3,000 kms for 1 month. If the usage exceeds the minimum, the per kilometer rate is used

Trip Rate is decided for 1 trip. Trip is defined as cab coming to office by picking up employees or vice-versa. Rate is a function of city’s geography, office location. For e.g. Rs 400 per trip. This model sometimes has a round trip discount e.g. Rs 700 for a round trip

Per Employee Based on the number of employees picked up and dropped. For e.g. Rs 3000 per employee per month

Other parameters which affect these billing models are:

Garage distance The distance which the driver cover to reach the office or employee’s house

Overtime For working beyond the specified time

Fuel base rate To adjust for changes in diesel rate

Companies use a combination of models. For e.g.50% of cabs can be on Kilometre model while the rest 50% on Package model. Also, companies try not to include the “Other Parameters” in their billing, for the sake of simplicity.

The approximate usage of these billing models in the markets is given below.

For more click here :http://www.moveinsync.com/downloads/newsletter-sep2012.pdf

MoveInSync (www.moveinsync.com) is in thebusiness of organizing transportation for India. The company has built a transport managementplatform which is used to move people or goods in an efficient manner. One of the solutions built using this platform is Employee Transportation Solution (ETS). ETS is used by organizations in IT,BPO and Airlines sectors which provide pickup and drop services for their employees. The solution helps these organizations reduce cost and improve employee satisfaction. The company has patents in the transportation domain. MoveInSync has offices in Hyderabad and Bangalore.

Please send your comments and suggestions on this newsletter to deepesh@moveinsync.com.