Cathay Pacific Airways

Cathay Pacific Airways is one of the prominent Hong Kong airlines’. Over the past decade they often found ways to over come the unpredictable market. Their main goal was to cut cost, they felt that would the best way for them to make there present felt in the market. Anthony Yeung acting general manager of information technology sort out to complete this challenge. Yeung started at Pacific in 1970 right after he graduated. He wrote the first reservations system for Cathay. After a fire at one of Cathay three Data Center, critical functions such as passenger reservations, departure control, engineering, flights and crew operations was interrupted for over 12 hours. During this time Cathay acknowledged how important IT was to there company. They decided to move all dedicated support to central data center. The place that best fit this move was Australia. Australia land was cheaper and not located in a crowded industrial area. Australia also waived the 20% percent import tax on Cathay mainframes. They also gave free resident visas to all Cathay IM staff relocating to Australia. Australia seems to realized the benefit of having Cathay IM staff station in there country. In the past five year of service at Cathay Pacific Yeung outsourced 65% of his operating budget. Outsourcing became a key technique for reducing company cost. The main concern behind outsourcing was to outsource the nonstrategic functions. Cathy retained to many functions in house that could have been easily outsourced. Cathay decided to cut cost further