London City Airport is outsourcing its IT services following a 50 per cent rise in passenger numbers over the past three years.
An annual 14 per cent growth rate in passenger traffic has seen the airport outgrow its IT services capabilities.
Richard Gooding, the airport’s managing director, was faced with an unsustainable situation. ‘The size of the IT challenge was getting out of hand, and without a solution we were facing a major business failure,’ he said.
The decision to outsource to aviation sector contractor Sita was primarily service- and efficiency-driven. Gooding says the seven-year contract will allow the organisation to focus on its core business of serving the aviation industry.
IT services were handed over without disruption – three of the four-strong IT team were hired by Sita.
Gooding saw immediate practical benefits to be gained from outsourcing IT services, including additional management abilities and improved sector expertise. And he expects long-term benefits in continuity of personnel and improved service provision.
Gooding says cost benefits will result from improved business efficiency, despite the initial expenses incurred.
And he advises companies embarking on outsourcing projects to set clear goals.
‘Too many people outsource solely to cut costs – I don’t support that. If you cannot get the service quality right, it does not matter if it’s a bit cheaper,’ he said.
London City Airport is privately owned by Irish financier Dermot Desmond, and is the largest airport in the world under the ownership of one person.
Sita had been working with London City Airport on a temporary basis before being formally awarded the contract.
Passenger volume is set to rise even further with the Olympics in 2012. London City Airport will be the closest airport to the Olympic stadium.
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