Global Airline Cuts Accounting Function Costs 60% by Outsourcing
Summary
The accounting function at this global airline company generated considerable business value to the organization, but lower costs and improved efficiency were required.
Client Challenge
Higher fuel costs, a decline in passenger traffic and competition from low-cost carriers
Identified accounting operations as best candidate to begin cost cutting/restructuring
Saw Information Technology (IT) as a key performance improvement driver
Wanted to evaluate and implement a new supporting IT system
Alsbridge was engaged to improve operational efficiencies and sharply lower costs.
How Alsbridge Helped
Assessed the feasibility of outsourcing in-scope functions and developed a high-level business case along with migration sequencing
Helped narrow down capable providers by conducting a Sourcing Alignment Session™ to identify cultural fit and the ability to provide both the IT system and multi-process accounting
Helped select the vendor and acted as the lead negotiator on the deal
Co-developed and validated the proposed solution of the winning provider
Drafted the contract, the Statement of Work (SOW) and Service Level Agreements (SLAs).
Benefit
60% cost savings on outsourced positions and reduction in number of positions
Improved revenue collection with no drop in accuracy or service levels
