Qantas technology tsar David Hall today laid out his vision for a more streamlined IT department at the airline that would move past what he described as its "transactional and sometimes antagonistic relationship" with other divisions.
Qantas technology tsar David Hall today laid out his
vision for a more streamlined IT department at the airline that
would move past what he described as its "transactional and
sometimes antagonistic relationship" with other divisions.
In three years' time I'd like [Qantas CEO Alan Joyce] to say he has the best IT function of all aviators around the globe
Qantas tech chief David Hall
The self-described "quasi-chief information officer" — his
formal title is executive manager of corporate services and
technology — told a lunch held by the Committee for Economic
Development of Australia that he envisaged Qantas could cut its IT
costs by $100 million over the next financial year.
The executive did not give the Sydney audience — packed with
executives from giant technology suppliers like Sun Microsystems,
Fujitsu, Deloitte Touche Tohmatsu and KPMG — much detail around
how the airline planned to take such a large amount out of its IT
budget.
But he did lay out a few clues.
For starters, Hall pointed out, Qantas had gradually cut its IT
department headcount from about 1400 back in 1997 to a total of 375
today.
This week the executive confirmed about 200 of its staff would be
offered positions at IBM as the airline handed Big Blue
responsibility for IT project delivery. However, Hall did not say
whether the 375 total included that number or not.
Over the past months the airline has pursued a number of other
outsourcing initiatives; switching desktop support suppliers from
Telstra to Fujitsu and signing Perth-based IT services outfit ASG
for further application support. Hall said Qantas now had a "leaner and more efficient business
and technology team".
In terms of development of the airline's systems in future, the
executive said he wanted to take a page out of subsidiary Jetstar's
book, as it had made much greater use of commoditised and modular
software than Qantas has been able to, due to its legacy
platforms.
The IT functions of Qantas and Jetstar are managed separately
"at the moment", according to Hall, but Jetstar CIO Stephen Tame
reports to Hall.
Hall said Qantas was "in the final stages" of decommissioning
its Q reservation and departure systems, with the airline having
adopted the Amadeus customer management platform instead. The the airline's legacy environment is sizeable; Qantas
currently has some 300 systems and 400 applications, according to
Hall.
"Execution costs and overall complexity remain too high," Hall said.
On the supplier side, although Qantas had outsourced
the majority of its IT function, outsourcing required "astute
management", according to Hall. The airline has appointed a new head of commercial
relationships, Paul Hanna, and Hall said he saw Qantas becoming a
more demanding customer in future.
"We make no apology for this," he said.
In general, Hall said he wanted to move Qantas's IT department
away from the "transactional and sometimes antagonistic
relationship" it had had with the rest of the Qantas business, and
to a position where it was seen internally as a "genuine and actual
partner".
"In three years' time I'd like [Qantas CEO Alan Joyce] to say he
has the best IT function of all aviators around the globe," he
said.