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April 5, 2014
No of pages / words:
2 / 504
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During the 1970's, the airline had developed most of its IT systems in-house including a reservation system that was sold to other airlines. In 1997 and 1998 the airline faced some challenging times due to the "East Asian Economical Crisis", the relocation to a new state of the art facility in Cathay City, and the aircraft that were on order were due for delivery...
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As a result of these challenges, the organization decided to outsource nonstrategic business functions in order to cut costs. Cathay's outsourcing plan initially started in 1992 and in 1997 "smartsourcing" was launched.
How would IT support the cost cutting initiatives set by the organization? What challenges did Cathay's IT department faced as they began to outsource its IT infrastructure? What other system would be outsourced next?
· The smartsourcing initiative had to be separated into to separate tasks because of the inability to find an outsourcing partner that could support both IT infrastructure and airline applications...
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