American Airlines worked with EDS to cut IT costs by transitioning some support functions offshore. EDS used its capability centers in Brazil and Argentina to take over select application support. Knowledge transfer between teams overcame initial communication challenges. An assessment of American's applications identified additional functions suitable for offshore support. American realized lower IT costs through the offshoring arrangement with EDS.

1. case study
Cutting costs through the best combination eds.com
of offshore solutions
>> World’s largest passenger airline streamlines IT with Global Delivery Model
American Airlines
When this major US-based carrier needed an offshore IT provider to help it cut costs and add value, it tapped the transportation
industry expertise of EDS’ Latin America capability centers.
EDS provides American Airline strives to reduce IT costs without compromising capability
with desktop services American Airlines is the world’s largest airline, carrying more than 98 million passengers last
globally in more than year. American, American Eagle and the American Connection airlines serve 250 cities in
270 locations. EDS also over 40 countries with more than 4,000 daily flights. Combined, this fleet network operates
supports a mainframe more than 1,000 aircraft. Sustaining such vast operations requires a robust IT environment
environment with over with 7X24X365 IT support. So when American’s CIO initiated a drive to optimize the carrier’s
15,600 MIPS, over 36,000 IT investments, EDS was a natural partner. Through this initiative, American’s IT division set
desktops, 320 applications, out to reduce costs and then reinvest those savings to further reduce operating expenses.
800+ midrange boxes, 800
American migrates IT support to EDS centers in Brazil and Argentina
print servers, 113.5 TB of
Presently, EDS supports some of the applications that enable the airline’s major business
midrange-related storage,
functions, such as Enterprise Data, HR, Finance, Business Operations, Business to Employee
20,000+ helpdesk calls per
Systems, Cargo Systems, Reservations, Loyalty Programs, Marketing Systems, and Maintenance
month, and over 30 million
and Engineering. American decided that shifting support for some of these applications offshore
monthly hits by the public
would reduce the support costs. The airline targeted select business applications for transition-
to hosted Web sites.
ing into the EDS Global Delivery Model in Q4, 2005 and Q1, 2006.
The plan focused on migrating work into the Latin America region where EDS provides
applications services from its Best ShoreSM capability centers in Brazil and Argentina. Selecting
a location with a time zone similar to American’s offices in Texas and leveraging the centers’
existing transportation expertise contributed to the choice of venue.

2. case study
Methodology and technology To structure the global services transition, EDS established a migration process and
a plan that emphasized knowledge transfer. The team from Latin America came to
Initial business applications were selected
and assessed to determine readiness for the United States to receive system orientation and training for American’s business
global support and to identify application applications. The U.S.-based American Airlines and EDS teams initially faced
services that could be migrated to the EDS communication challenges across continents and languages. A lessons-learned
Best Shore capability centers. For these session identified communication techniques that were added to each team’s
selected business applications, EDS
communication plan, providing the means to ensure knowledge could flow across a
provided application development and
globally diverse team.
maintenance services from the United
States, including 7X24X365 support. The
Next, American and EDS extended the successful global support model across the
Reservation Call Center and Enterprise
client’s enterprise portfolio of business applications. EDS proposed an enterprise
Data applications require skills in the Java
capability and midrange databases. HR and assessment framework to determine the readiness of each business application and
Finance require skills in the SAP capability, associated work effort that could be transitioned into the EDS Global Delivery Model.
midrange and mainframe z/OS skills.
EDS conducted the enterprise level assessment in Q1 and Q2 of 2006. EDS
established an assessment process that brought together the client and EDS teams
Services featured for each business area. The process evaluated the business applications in terms of
• Applications Development
complexity, technologies implemented, resource skill sets and experience levels.
• Applications Outsourcing
The data collected during the assessment process provided the client a view into
additional business applications that EDS could transition into the Global Delivery
Model, so American could further reduce costs.
American realizes lower IT costs through offshoring
Based on migrating the initially selected business applications into the EDS
Global Delivery Model, EDS helped American reduce its IT spend, and the airline
EDS. Technology services. was able to realize these benefits throughout 2006. The global model has
Business solutions. introduced a “built-in” means of providing cost-efficient services, and American
We help clients improve their
systems and processes so they Airlines has a proven methodology that’s ready for future outsourcing.
can become more productive,
manage change and grow.
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