IT Outsourcing of Cathay Pacific

IT Outsourcing of Cathay Pacific Presented by Kimmy Chen, London Han, Tong Li, Eva Na, Ali Naushad Nathoo, Dongsoo Kang

Contents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The Company Profile ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Airline industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Financial Performance HK$ Millions Outsourcing First Step Outsourcing Additional Step Asian Economic Crisis High Oil Price Smartsourcing Data Center Outsourcing Desktop Outsourcing SARS

Airline industry and IT ,[object Object],[object Object],[object Object],[object Object],IT Improvement Travel information availability and IT interface of customers increase -> Demand Increase Network carriers’ change Low cost carriers entrance -> High competition

Outsourcing history overview Stage 6 (Post-2002) Stage 5 ( Strategic IT) Stage 4 (T ough times, further outsourcing) Stage 3 ( Additional Steps) Stage 2 ( Outsourcing in the first step) Stage 1 (In-house) 1970s 1990~1993 1994~1995 1997~1998 2002 2003~

Outsourcing history - Stage 1 In-house IT service ,[object Object],[object Object],[object Object],[object Object],[object Object]

Outsourcing history – Stage 2 Outsourcing in the first step ,[object Object],[object Object],[object Object],[object Object]

Outsourcing history – Stage 3 Additional Steps ,[object Object],[object Object],[object Object],[object Object],[object Object]

Outsourcing history – Stage 4 Tough times, further outsourcing ,[object Object],[object Object],[object Object],[object Object],A matter of Convenience A matter of Survival Economic turbulence Competitive pressures Rapid growth

Outsourcing history – Stage 4 (Continued) Smartsourcing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Outsourcing history – Stage 4 (Continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Outsourcing history – Stage 5 Strategic IT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Outsourcing history – Post 2002 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],New EVOLVE IT Strategy

General pros and cons of outsourcing Pros Cons ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Evaluate Cathay’s IT outsourcing Strategy ,[object Object],[object Object],[object Object],[object Object]

The strengths of IT Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]

Risks and Disadvantages ,[object Object],[object Object]

How could Cathay have done differently? ,[object Object],[object Object],[object Object],[object Object]

New opportunities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Current Challenges ,[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],Prosper in the future

Companies Suffer Without A Systematic Outsourcing Approach Fragmented Outsourcing Contracts Constitute A Complex Puzzle Source: Forrester Research, Inc.

Integration Methodology for Outsourcing Source: Forrester Research, Inc. ,[object Object],[object Object],[object Object],[object Object],[object Object]

Six Basic Sourcing Methods Cover All Situations Source: Forrester Research, Inc.

Source: Forrester Research, Inc. Six Basic Sourcing Methods Cover All Situations (Cont.)

3 Steps To Defining A Strategic Approach To Outsourcing Approach Source: Forrester Research, Inc.

IT Centralization & IT Archetype Shape Basic Options Source: Forrester Research, Inc.

IT Centralization & IT Archetype Shape Basic Options (Cont) Source: lecture material from Hasan Cavusoglu ,[object Object],[object Object],[object Object],[object Object],[object Object]

Select Sourcing Models That Fit Your Foundations Source: Forrester Research, Inc.

IT Outsourcing of Cathay Pacific

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IT Outsourcing of Cathay Pacific