CSC Outsourcing Gives Airline Transition Without Turbulence

Scandinavian Airlines Group (SAS) has built a reputation for reliability and strong customer service. SAS chose CSC to outsource its IT operations because CSC's ability to handle both systems and staff could preserve that reputation.

SAS, Scandinavia's largest airline, sought an outsourcing partner who could manage a quick transition without service interruptions. Experience and a history of successful outsourcing engagements were of primary importance, but SAS also wanted an outsourcer that would account for the interests of SAS' IT employees in its human resources policy.

The airline created 30 selection criteria, divided into financials, customers and employees. "When we looked at the selection criteria scores, CSC scored very high on all 30 criteria and had the leading position," says John Dueholm, executive vice president of SAS. "CSC offered our Scandinavian IT Group (SIG) employees a clear, well-defined future and their customer relations model was more involving. But more importantly, CSC went to great lengths to find answers to any questions—and they were more interested in finding balanced solutions."

CSC's reputation and emphasis on partnership set the company apart from competitors, says Dueholm. "We took three references from the market and the results were that CSC always delivered—also in the partnership role," he says. "It was an easy decision."

The double challenge: systems and staff

All of SAS' mission-critical IT infrastructure functions were transferred to CSC as part of the contract. CSC also served as SAS' IT consultant, maintaining and operating the airline's server environment and desktops.

As part of the transition, CSC acquired SIG, along with 1,200 employees, and turned it into a new division called Airline Solutions. Lars Peter Johansson, transition director at CSC, says that this arrangement is unique. "This was much more than just another outsourcing agreement—it was also an acquisition. The systems transition was also quite challenging. We had to split the networks without affecting daily operations. It took five months to plan and one to execute."

Johansson attributes the successful transition to efficient planning and staff buy-in and involvement. Morten Sogard, managing director of CSC Airline Solutions, credits the tools, methodologies and standards CSC has developed from years of industry experience that the company used to evaluate SAS' processes and build efficiency.

Managing the human element to this outsourcing arrangement can prove difficult if an outsourcer is not experienced in the sensitivities of transitioning employees. "CSC looked at SIG staff as individuals. Dealt with us in a productive way and deserves a lot of credit for respecting us and our customers." says Jan Aldergren, market development director of CSC Airline Solutions, who joined CSC in the SIG transition. "From the very beginning, we were happy to know that CSC was the choice."

"It all went according to plan," says Dueholm. "In six months everything—from the deal to the transition itself—was done. CSC maintained a very high quality level, cost reductions have been delivered and the transition was stable and completed on time as agreed. In terms of optimizing our business performance levels, we are completely satisfied. CSC met all our expectations."

Looking to the future

SAS is currently developing a process for CSC to implement a new standard system and has recently decided to outsource the IT of Braathens, a smaller airline owned by SAS Group, to CSC. SAS, says Dueholm, is interested in a long-term relationship with CSC.

"We are already seeing business benefits from this partnership," says Dueholm. "One of the main factors in choosing CSC in the first place was their underlying attitude of partnership. It's easy to sit around a table and just talk about partnership, but CSC has realized that in practice."

Related Information

Read more about CSC's work with SAS in CSC World online.

Find out more about CSC's expertise in Outsourcing.

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