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BAA outsources IT apps to LogicaCMG

The owner of Heathrow Airport will reduce cost of application services and development with the transfer 50 staff and use of onshore/offshore outsourcing deal model.

By Miya Knights, 12 Feb 2008 at 14:36

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Airport owner BAA has today announced it has outsourced its IT applications to LogicaCMG.

Under the new agreement, the systems integrator will work with BAA and its partners to transform and manage most of BAA's current software applications.

The group, which owns seven UK airports including its busiest, Heathrow, Gatwick and Stansted, is looking to meet its overall strategic IT goals by reducing the cost of the delivery of its application services and development, while improving the quality and agility of the service.

Richard Rundle, BAA IT director said LogicaCMG would form part of its multi-vendor strategy. "Through this contract, BAA will be able to achieve a more consistent approach to its IT services and applications across the business. It will allow us to manage our applications at an optimal cost, whilst maintaining strong service levels."

As part of the contract, approximately 50 BAA staff will transfer to LogicaCMG and the outsourced support services will be delivered through a combined onshore/offshore model using the provider's Shared Services Centre in Bangalore.

The deal will see hand over management of over 400 different applications ranging from aircraft stand allocation and staff rostering, through to BAA's Oracle Enterprise Suite. And work will streamline and transform the performance of the group's end-to-end application support, maintenance and development processes.

As part of the contract, applications enhancement, development and testing and preventative maintenance will also be managed and streamlined. The contract became operational in January 2008, but financial terms were not disclosed.

LogicaCMG's global sourcing hub will provide BAA with integration between offshore and onshore service delivery. The provider added that this would deliver the benefits and efficiencies of global sourcing, while retaining local skills, ownership and domain knowledge to reduce the perceived risks associated with moving work offshore.