12 Feb 2008
Airport group BAA has signed a five-year outsourcing deal with LogicaCMG for its application management.
The includes restructuring the company's software support, maintenance and development processes, as well as moving 50 BAA staff to LogicaCMG.
Under the partnership, BAA will integrate offshore and onshore service delivery whilst retaining local skills, ownership and domain knowledge to reduce the perceived risks associated with moving work offshore.
"Through this contract, BAA will be able to achieve a more consistent approach to its IT services and applications across the business," said BAA IT director Richard Rundle.
"And we will be able to manage our applications at an optimal cost, whilst maintaining strong service levels."
I think the problem is with the company and not outsourcing. Having worked with a number of outsourcing companies , i have seen the pure indian companies doing a very good job and our own UK cousins struggling. Logica does not understand offshoring and ends up doing to justify margins and ends up looking foolish.
Posted by: santosh 13 May 2008
The risk which you have just explained ... I guess Richard is also smart enough to figure it out .. that's why he is there and u are writing this blog :-) ( just kidding man ) ... anyways ... well I think that's how the business should be ... if everything goes right then what is the fun ... let's see what logica has to offer .. surely even they have a plan in place ... no body takes these kind of decisions overnight ...
Posted by: Optimistic Explorer .... 29 Mar 2008
It's seen as prudent for companies to outsource their IT to companies offering services based on cheaper (but equally skilled) labour from the other side of the world.
Whether this was utilmately Richard Rundle's decision or not, with Ferrovial owing so much from the purchase of BAA it would be the natural thing to do, outsource.
However, at BAA, IT is not just about skills, but also about industry knowledge and expertise which cannot be gained overnight by a company such as Logina who contract out work to an Indian industrial estate.
It may be saving cash but it is introducing significant RISK, something the airlines don't and won't accept. And when it all goes wrong (like in the recent T4 baggage situation) the end customer won't accept it either.
Lets see if Richard Rundle puts his job on the line when making this decision, and see what happens if/when it all goes wrong.
Posted by: Anonymous 23 Feb 2008
I am one of the people transferred to Logica as part of this deal and let me tell you it has not gone so well and continues to not go so well. There are many unhappy people here and the service is going rapidly down hill. They want to offshore a whole host of applications services work including support which requires local knowledge. SLAs are going to be so severely hit! There wasn't even a tender process.
Posted by: Anonymous 13 Feb 2008
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