1. How well did Air Canada follow the outsourcing process? Explain in detail (20 points)
Air Canada is leading airline service provider of Canada where government deregulated while privatizing it. Outsourcing process of Air Canada was quite well where it outsourced its various IT operations. Outsourcing at Air Canada achieved alignment of business goals with IT objectives. Primarily, IT outsourcing achieves cost effectiveness while attaining business efficiency through centralized IT functions. Air Canada had targeted customer proximity and operational excellence as its strategic objectives. Air Canada has implemented outsourcing strategy of ‘best of breed’ to derive best in class supplier process efficiency. It sustained great coordination between in-house operations and outsourced operations to get output of innovative solutions while achieving ultimate objectives of excellence in operations and proximity of customer service.
2. Why did Air Canada outsourced – do you agree with the reasons for outsourcing at Air Canada? (10 points)
Air Canada engaged in the process of outsourcing to materialize its mission ‘to connect Canada with world’ whereby sustaining its highest customer loyalty with innovation and passion. Air Canada has to struggle with its operational costs where I aimed to cut …show more content…
There is resemblance with portfolio management and outsourcing; portfolio manager never relies on single portfolio rather it distributes investment into various portfolios to minimize risk level. Similarly, outsourcing company needs to reduce its risk of outsourcing by sub-dividing operations and delegating among many suppliers to distribute risk rather concentrating risk on single source. Best of breed outsourcing means that organization should achieve high service delivery from
Air Canada is leading airline service provider of Canada where government deregulated while privatizing it. Outsourcing process of Air Canada was quite well where it outsourced its various IT operations. Outsourcing at Air Canada achieved alignment of business goals with IT objectives. Primarily, IT outsourcing achieves cost effectiveness while attaining business efficiency through centralized IT functions. Air Canada had targeted customer proximity and operational excellence as its strategic objectives. Air Canada has implemented outsourcing strategy of ‘best of breed’ to derive best in class supplier process efficiency. It sustained great coordination between in-house operations and outsourced operations to get output of innovative solutions while achieving ultimate objectives of excellence in operations and proximity of customer service.
2. Why did Air Canada outsourced – do you agree with the reasons for outsourcing at Air Canada? (10 points)
Air Canada engaged in the process of outsourcing to materialize its mission ‘to connect Canada with world’ whereby sustaining its highest customer loyalty with innovation and passion. Air Canada has to struggle with its operational costs where I aimed to cut …show more content…
There is resemblance with portfolio management and outsourcing; portfolio manager never relies on single portfolio rather it distributes investment into various portfolios to minimize risk level. Similarly, outsourcing company needs to reduce its risk of outsourcing by sub-dividing operations and delegating among many suppliers to distribute risk rather concentrating risk on single source. Best of breed outsourcing means that organization should achieve high service delivery from