Client:
Britannia Airways Ltd (BAL) is part of TUI AG, the world’s largest tourism group. As one of the U.K’s leading charter airlines, the business environment at Britannia is driven hard by the competitive nature of the leisure/travel sector in terms of cost and deadlines.
Situation/ Critical Issues:
A short market analysis of Offshore Applications Management capabilities conducted by Britannia Airways in 2003 identified real opportunities for BAL to reduce its existing AM costs. This analysis propelled BAL to review its sourcing relationships and consider support from a third party outsourcing expert to facilitate the move offshore and protect its business investments.
BAL recognised the need for a management support resource with:
- specialist knowledge of offshore outsourcing
- the necessary pace and agility to deliver to a strict time scale and avoid the obstacles of an offshore outsource.
Quantum Plus were selected as the independent sourcing advisor to fulfil these requirements.
Our services:
Quantum Plus were engaged by BAL to assist in conducting a structured tender process that allowed BAL to consider outsourcing part or all of its existing AM activities. The objective of this process was to deliver the optimum deal in the shortest timescale with the minimum risk to the business.
Initially, Quantum Plus worked with BAL to prepare to outsource, and create a full baseline of information about the operation. Quantum Plus then managed a tightly constructed supplier evaluation process, including qualifying candidates to go forward to the formal stage of RFP and a supplier Q&A exercise. Later in the process, to protect BAL’s contract negotiation position, Quantum Plus negotiated with more than one supplier for the full ADM scope. Finally, after careful consideration and scrutiny, LogicaCMG was chosen as the Preferred Supplier, signing a robust contract designed by Quantum Plus. A 7 month phased support and development hand over to LogicaCMG’s Offshore division in Bangalore, India, followed, jointly overseen by both parties.
Quantum Plus have been retained by BAL to provide ongoing management support, ensuring a smooth and effective transition offshore.
Results:
Quantum Plus’ sourcing innovation and skills ensured the project timeline remained aggressive and the business interests of Britannia were protected. Through their professional management of the tender process and pitching competing suppliers against each other, Quantum Plus were able to shrink the tender process and quickly deliver a negotiated best practice contract.
Quantum Plus’ specialist experience of offshore outsourcing and supplier selection methodologies gave us the confidence to undertake preparation, procurement and negotiation of our applications outsourcing arrangements in just 4.5 months.
Neil Boulton, Head of IT, Britannia Airways