Air Canada Outsourcing Essay

It is clear in the airline industry that IT is an integral part of operations. As we learned from the Air Canada Case, almost all of the activities performed in the flying process depend immensely on IT. When thinking how IT can speed up business innovation, companies can continually develop new methods and learn from other companies based on what IT procedures are already in place. Being able to check-in to a flight online led to printing the boarding passes at home to downloading them to your smart phone. In return that process eliminated the need for more workers and supplies and put the costs on the consumer. When a company, like Air Canada, spends an integral amount of their time searching for new ideas, innovation will ascend. Air Canada
Outsourcing has many advantages, but also faces some disadvantages. To begin, an advantage in a globalized company because of working with external parties would be the expertise the outside company brings. They specialize in the task of the operation, and therefore, that specific task is completed faster and more efficiently. Also, costs are reduced, because it eliminates the need to hire talents to complete the jobs, and without the need of the labor, costs can be condensed from the recruiting expenses. A global, cost-efficient example is when the primary business outsources production to a third party in another country, such as China, who’s labor costs are significantly cheaper than in most countries. Also, management is able to accomplish more tasks and have a more detailed focus on the entire in-house operations resulting in higher quality outputs. Outsourcing in today’s economy is an intelligent business
To begin, there is a clear hierarchy system. Having each of the seven units consist of a project management office and managed by a senior director who then reports directly to the CIO, results in a dependable, functional working structure. The idea of allocating responsibilities among units allows for further specialization and communication flow. Air Canada went through several years of hardship regarding finding the right fit for the IT structure. The article makes it seem that Air Canada handled each changing structure as appropriately as possible. They made sure that each unit functioned under one common goal. Information technology allowed for Air Canada to differentiate themselves and have a competitive advantage on a global