Major Airline Reduces Outsourced Costs by 60%

Client challenge

Lower costs and improve efficiency for the accounting function while continuing to respond to operating-unit needs.

Like its competitors, our client faced including escalating fuel costs, a decline in passenger traffic since 9/11, and mounting competition from low-cost carriers. The client was under significant pressure to cut costs. The accounting operation was an ideal candidate to begin restructuring, with information technology a key driver to improve performance. The client also needed help in evaluating and implementing a new supporting IT system. Alsbridge was asked to help improve operational efficiencies and sharply lower the cost of operation.

How Alsbridge Helped

• Assessed the feasibility of outsourcing the in-scope functions and developed a high-level business case along with migration sequencing.
• Helped narrow down qualified providers by conducting a Sourcing Alignment System.™ Providers were evaluated based on cultural fit and the ability to provide both the IT system and multi-process accounting.
• Helped select the vendor, acted as the lead negotiator on the deal, co-developed and validated the solution of the winning provider, drafted the contract, and the Statement of Work (SOW) and Service Level Agreements (SLAs).

• Saved 60% of the cost of outsourced positions
• Reduced the number of positions needed
• Improved revenue collection with no drop in accuracy or disruption of key service levels