Stock Insight: Gaining Altitude

Kale Consultants is a strong play in business process outsourcing (BPO) and revenue accounting space. As airline companies try to cut costs and streamline revenues globally, the trend towards outsourcing non-core business will gain momentum translating into more opportunities for players like Kale Consultants.The company is uniquely positioned to capture the emerging opportunities in the sector. After a recent restructuring, the company has moved away from the traditional revenue model of an IPR-based business, which has been the classical initial lisence fee model, where an upfront licence fee was collected from the customer and the subsequent years saw relatively small incomes from the same customer. This will help the company enter long-term contracts which will bring recurring and sustainable revenue for a longer period. While the global airline industry in general has been incurring losses for the

This article was originally published on August 01, 2006.