Cathay Pacific

Abstract

This paper analyses the current IT environment in Cathay Pacific, evaluate the progress of outsourcing, brings up the new opportunities for cost savings, propose changes that need to be implemented. In a company wide effort nicknamed “Operation Better Shape”, later to be called “Business improvement”, several cost reduction opportunities were identified and outsourcing of IT is identified as being critical to cutting costs.

Evaluating Outsourcing: What is going well?

The “Smartsourcing” is actually very smart and has helped the company in great deal. The cost savings that company was able to generate due to outsourcing were tremendous (See Exhibit 1). The overall implementation of outsourcing was started with “low hanging fruits” like building maintenance, lift maintenance, transportation etc. The IM department is right in identifying the non-core business processes as the first areas that need to be outsourced. When outsourcing the data center, the company