BA halves IT cost by offshoring

British Airways (BA), one of the largest airline with global footprint, has achieved many benefits by improving the automation, business processes and smart sourcing their IT needs. The stated benefits include (see the report here):

    * Increased in productivity by 25%
    * Increased operating profit (10%)
    * Reduction in operation cost
    * Reduction in sales cost
    * Cost reduction by 50%

Offshoring IT services is not a mere technical decision as some people think. It can help companies to focus on their core functions, improve productivity, reduce costs and increase the viability of the overall business itself. In the current economic situation, my bet is that more and more companies would initiate new and/or intensify existing smart sourcing initiatives to derive more business benefits(Not just IT benefits).

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© Dhandapani Ammasai, 2011. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given with appropriate and specific direction to the original content.

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