Have you worked out how much that you managed to save by working with Telstra?
What weve done is weve virtualised all of our offshore systems. Had we followed traditional IT methods, as opposed to virtualised offshore systems, I probably would have saved around 10-15 per cent on my telecommunications costs because I wouldnt have needed as much network.
One of the key measures that I have is IT cost as a total percentage of revenue. So when Jetstar first started out our business in 2004, we had an IT cost to revenue of about 1.7 per cent. And so we then started driving our costs down and as the business was growing, the IT cost was diminishing, so in 2008, we got down to 1.2 per cent. This financial year, we were 0.98 to 1.0 per cent. So my objective is to keep the IT costs below one per cent of revenue and because the model deploys growth without necessarily incremental cost, I think that should be easily achievable as the business grows further.
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