freehills:
Quote:
Originally Posted by Sunfish View Post
As aa general rule, if IT is critical to the business, then you don't outsource it.
Major airlines that don't outsource IT
Delta (and they messed up)
Air New Zealand
And, frankly, it is a silly rule. I don't see many companies building their own PC operating systems, despite how critical that is. For a parallel, engines are also critical to the airline business, but since the break up of United in the 1930's, no airline hasn't outsourced designing & building engines
you misunderstand. there are multiple reputable and competitive sources for PC's, operating systems, engines (new and overhauled), tyres, etc. of course you can outsource all that without losing control and generate efficiencies in the process.
however, there is only one BA, and one set of BA IT systems that are intricately and inextricably bound up with BA'S business strategy. The two are inseparable and complementary, you cannot change business strategy without modifying business rules that are implemented in the software, period.
if you lose detailed control of the strategic IT in your business, you risk exactly what BA are now experiencing, because your contractor cannot know in detail what your strategic priorities are as well as you do, and those priorities change monthly.
for example, consider what software changes might be required to implement a marketing idea to increase baggage allowances.