November 28, 2005 | E-mail article link | m-Travel.com
BA cost cuts include "revamped online strategy and further outsourcing to India"
As part of its plans to save recently indicated figure of at least £200 million-per-year, British Airways "deep cost cuts include a revamped online strategy and further outsourcing to India".
According to Times Online, the detailed plans are due to be announced in next spring's business plan. They will be the first under chief executive Willie Walsh, who forged a reputation when at Aer Lingus as a fierce cost-cutter. Also, the report said: Automating ticketing and check-in could allow BA to reduce its frontline staff significantly and may also set the model at Heathrow's Terminal 5, which will be used exclusively by the flag carrier.
As per the information available, the airline is in talks with India's major IT suppliers as part of a review of the airline's contracts for offshore work. The airline currently has two framework agreements for software development work with Indian firms NIIT and TCS but with these up for renewal before the end of the year the airline is looking to cast its net wider, reports silicon.com.
Coby, according to silicon.com, said he is looking at adding another Indian IT supplier to the framework agreements for offshore work and, as well as meeting with his existing Indian suppliers, he will meet senior executives at Infosys and Wipro in Bangalore. The report added: The framework agreements will set in place a pricing structure for future offshore application development work and give BA 'on-demand'-style access to the resources in India depending on the internal IT workload. Coby told silicon.com that BA's use of offshore resources is primarily about freeing up the airline's internal IT department to focus on core strategy and design work by sending the lower-level application development and programming work overseas as and when the need arises.
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