Agency Bid Takes Informal Turn

<B>Agency Bid Takes Informal Turn</B>

<B>Name: </B>Mike Kabo

<B>Company:</B> Computer Sciences Corp.

<B>Headquarters: </B>El Segundo, Calif.

<B>U.S. Booked Air Volume:</B> $120 million

<B>Innovation:</B> Taking an informal, regional approach to rebidding its agencies multinationally


With an eye on escalating travel transaction costs and another on the globe, Computer Sciences Corp. is in the process of rebidding its travel management services and implementing online booking on a regional basis around the world.

The consulting and information technology services firm three years ago consolidated travel in the United States with American Express, but felt the time was ripe to re-examine its travel management supplier. "Our contract expired, and it was time to test the water. Many changes have taken place and, from a financial standpoint, we wanted to make sure we were seeing the best return," said Mike Kabo, senior director of global travel programs for CSC.

CSC did not undergo a formal request for proposal process, but informally conducted the bidding process with a small number of agencies. Based on those discussions, CSC narrowed the field down to the incumbent and Rosenbluth International, which, based on service and cost, ultimately won its $120 million U.S. air volume contract. "By going through the informal process, we got to the same place," Kabo said. "Overall, Rosenbluth had the best technology and their approach to travel management mirrored our view. Financially, they presented a strong return on our investment."

CSC has been undergoing agency consolidation in other regions. Following its agency selection process in the United States, CSC underwent the exercise in Asia/Pacific and awarded the contract for that region to Rosenbluth as well. This month, it will bid for travel management service in Europe.

"There are two schools of thought from a buyer's perspective: You can do the whole thing at one time or take bite-size pieces. CSC has a tremendous amount of critical mass around the world, so it makes sense for them to do it this way," said Ron DiLeo, senior vice president of North America for Rosenbluth. DiLeo said CSC's regional approach to agency selection is similar to other large multinational companies that Rosenbluth sees. "I can't remember the last time we competed in a bid that wasn't multinational," he said.

Rosenbluth on April 1 completed implementation for CSC in the United States and on June 1 began servicing CSC in Singapore. It will implement the remaining countries in Asia/Pacific--Hong Kong, India, Japan, Korea, Malaysia, Taiwan and Thailand--on July 1. DiLeo said as a result of its consolidation in Asia/Pacific, CSC will be able to generate much better data.

While CSC undertook the bidding process on a regional basis, it is asking Rosenbluth to approach service requirements business by business. "We are trying to understand the behaviors of each and taking those findings for a more prescriptive approach," DiLeo said. Rosenbluth is offering customized solutions based on the needs of each of CSC's 16 individual business units.

"We have done a variety of things, looking to meet the specific needs of travelers and business directors," Kabo said. "Some work much more effectively in a call center environment, others work best in an onsite. In one case, we have a hybrid situation with a dedicated team in a call center."

CSC has a transaction-based fee with Rosenbluth that will be tiered for reservations booked online when CSC introduces online booking for the first time later this year. "Our ability to help them reduce costs helps them to be more competitive, as a lot of their services are billable. We are offering multi-channel ways to drive down their bottom line," DiLeo said.

CSC selected GetThere after investigating all the major third-party booking tools that were available. "We looked at all the options that we thought would meet our needs and handle the complexity and size of our travel program. GetThere looked like it could best meet our needs," Kabo said. CSC will conduct a beta test later this month and will roll out GetThere in the United States in July, in the United Kingdom in August and in Australia in September. It will introduce the online booking tool in Europe early next year.

Although Rosenbluth did not participate in the selection of the booking tool, it will provide centralized online fulfillment and site administration, and work with CSC to reach its adoption goal. CSC has set an initial adoption target at 30 percent, based on the company's travel patterns and, based on that, has calculated savings in transaction fees in excess of $1 million. Kabo said that target probably is conservative and that CSC will seek a long-term adoption goal of more than 50 percent. "We're a high-tech company, and we have a tremendous number of road warriors, who are the ones clamoring for online booking," Kabo said. "We think it will be a very easy transition.