14 Dec 1996
British Airways (BA) is planning to pump #3m into automating its accountancy division in a restructuring plan that will use network links to allow functions to be outsourced to a subsidiary in India.
The move involves the loss of 600 UK jobs and the creation of 200 positions at the BA-owned Speedwing World Network Services division in Bombay. It claims that the project will save BA #9m per year.
500 staff will remain at BA's Odyssey Park accounting centre in West London, which will act as headquarters. The Bombay centre will be an automated information processing plant.
Information will be sent to India over a new network infrastructure before it is returned to the UK for final accounting.
BA's chairman, Bob Ayling said that many other airlines already outsource accountancy functions to countries where labour is cheaper. Asia is the most popular location for the European carriers and Mexico is favourite with US firms.
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