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Offload all of the critical thinking to your advertisers.
I fail to understand the logic presented here.
easyJet has less IT staff because they are responsible for less. Using the same logic to an extreme: IT would be free if it was outsourced completely?
0.85 vs 1.65% of annual revenue means nothing if the services delivered are different.
The Services delta is purchased as SaaS instead, so there will be flow-on cost to other areas of easyJets business. (i.e Extra contracts, extra Accounting etc) but this doesnt affect the IT department???
I genuinely believe that SaaS may be the right option for easyJet, just not for any of the reasons described.
easyJet has less IT staff because they are responsible for less. Using the same logic to an extreme: IT would be free if it was outsourced completely?
0.85 vs 1.65% of annual revenue means nothing if the services delivered are different.
The Services delta is purchased as SaaS instead, so there will be flow-on cost to other areas of easyJets business. (i.e Extra contracts, extra Accounting etc) but this doesnt affect the IT department???
I genuinely believe that SaaS may be the right option for easyJet, just not for any of the reasons described.
You can show how you've reduced your costs and get a bonus / promotion. The fact that you just stuck one of your rivals for the next rung up the ladder by offloading your costs on to them, is a twofer.
...Although it's a bit harder for us, since we're knee-deep in things. On-going, I'm with you guys. A service I can perform that is out-sourced will usually end up being more expensive cash-wise over the long-run...
BUT, if you're looking at the bigger picture, time is money. Especially if you hire a bunch of pricey IT gurus to support your real-time reservations database and all of it's perks for your customers, and they end up putting out fires for internal resources. You're not getting the value that you're paying for, so get rid of it. Even if those pricey IT guys end up sitting around a bit, they're there, focused and AVAILABLE.to reduce or remove any negative impact on your customers, which has it's own cost. It's not something we can easily see, though. (Of course, whether this is REALIZED or not is a debate of it's own!
)
In this day and age, look at the PlayStation 3. Superior hardware, software and better pricing structure... But Microsoft has 'won out' with consumers because they've better delivered the service aspect. It might not make sense, but you follow where the money goes...
BUT, if you're looking at the bigger picture, time is money. Especially if you hire a bunch of pricey IT gurus to support your real-time reservations database and all of it's perks for your customers, and they end up putting out fires for internal resources. You're not getting the value that you're paying for, so get rid of it. Even if those pricey IT guys end up sitting around a bit, they're there, focused and AVAILABLE.to reduce or remove any negative impact on your customers, which has it's own cost. It's not something we can easily see, though. (Of course, whether this is REALIZED or not is a debate of it's own!
)In this day and age, look at the PlayStation 3. Superior hardware, software and better pricing structure... But Microsoft has 'won out' with consumers because they've better delivered the service aspect. It might not make sense, but you follow where the money goes...
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