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You can find the current article at its original source at https://www.theguardian.com/business/2017/jun/13/ba-capita-call-centres-it-meltdown-airline-outsourcing-flight-cancellations
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| British Airways looks to Capita to run call centres after IT meltdown | British Airways looks to Capita to run call centres after IT meltdown |
| (7 months later) | |
| Union condemns airline for approaching controversial outsourcing firm to manage contact centres criticised after flight cancellations | |
| Gwyn Topham Transport correspondent | |
| Tue 13 Jun 2017 13.04 BST | |
| Last modified on Mon 27 Nov 2017 22.47 GMT | |
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| British Airways is close to striking an agreement for Capita to run its call centres as the airline attempts to improve its customer relations after its disastrous IT meltdown last month. | British Airways is close to striking an agreement for Capita to run its call centres as the airline attempts to improve its customer relations after its disastrous IT meltdown last month. |
| Under the agreement, Capita, an outsourcing group that has had its own public relations disasters in the past with its management of London’s congestion charge and NHS administration, would take over the almost 10m calls a year made to BA staff in Newcastle upon Tyne and Manchester. | Under the agreement, Capita, an outsourcing group that has had its own public relations disasters in the past with its management of London’s congestion charge and NHS administration, would take over the almost 10m calls a year made to BA staff in Newcastle upon Tyne and Manchester. |
| Questions were asked about cost-cutting at British Airways after a system meltdown left 75,000 passengers stranded over a May bank holiday weekend, with unions highlighting the hundreds of skilled staff who had been made redundant in recent years. | Questions were asked about cost-cutting at British Airways after a system meltdown left 75,000 passengers stranded over a May bank holiday weekend, with unions highlighting the hundreds of skilled staff who had been made redundant in recent years. |
| But BA’s parent company, IAG, denied any link between outsourcing and the recent problems, and the airline group appears determined to cut costs further. The customer service centres were the focus of criticism as some passengers struggled to get information when hundreds of flights were cancelled. | But BA’s parent company, IAG, denied any link between outsourcing and the recent problems, and the airline group appears determined to cut costs further. The customer service centres were the focus of criticism as some passengers struggled to get information when hundreds of flights were cancelled. |
| About 1,100 staff are employed across the two call centres. | About 1,100 staff are employed across the two call centres. |
| The GMB union said it was a “short-sighted” move from BA. Mick Rix, national officer for aviation, said: “Despite record profits, this is the latest penny wise and pound foolish plan from IAG BA and is consistent with those that led to the IT meltdown. | The GMB union said it was a “short-sighted” move from BA. Mick Rix, national officer for aviation, said: “Despite record profits, this is the latest penny wise and pound foolish plan from IAG BA and is consistent with those that led to the IT meltdown. |
| “Hardworking, loyal and dedicated GMB members are to be rewarded with the outsourcing of their jobs to the lowest-price bidder.” | “Hardworking, loyal and dedicated GMB members are to be rewarded with the outsourcing of their jobs to the lowest-price bidder.” |
| A BA spokesman said: “To ensure we can offer the highest standards of service to customers, taking advantage of the latest developments in technology, we are conducting a review of our global call centre operations. As part of this review we are talking with Capita about the services they provide.” | A BA spokesman said: “To ensure we can offer the highest standards of service to customers, taking advantage of the latest developments in technology, we are conducting a review of our global call centre operations. As part of this review we are talking with Capita about the services they provide.” |
| In a trading update, Capita confirmed it had “entered a period of exclusive engagement with British Airways to explore forming a potential partnership to support its global customer contact operations”. It said that no final decisions regarding the outcome of this engagement had been made. | In a trading update, Capita confirmed it had “entered a period of exclusive engagement with British Airways to explore forming a potential partnership to support its global customer contact operations”. It said that no final decisions regarding the outcome of this engagement had been made. |
| Capita’s own problems have mounted in 2017. Its chief executive, Andy Parker, stepped down after profits fell by 33% in March. The company said on Tuesday it had secured£318m in contracts and extensions so far this year – including for the Northern Ireland government and the RSPCA – adding that it was bidding for work worth a further £3.8bn. | Capita’s own problems have mounted in 2017. Its chief executive, Andy Parker, stepped down after profits fell by 33% in March. The company said on Tuesday it had secured£318m in contracts and extensions so far this year – including for the Northern Ireland government and the RSPCA – adding that it was bidding for work worth a further £3.8bn. |
| It said there was “a shortlist of strong candidates” to succeed Parker, in what would be “a transitional year for the group”, with profits improving in the second half of the year. | It said there was “a shortlist of strong candidates” to succeed Parker, in what would be “a transitional year for the group”, with profits improving in the second half of the year. |
| Capita’s shares were the biggest risers in the FTSE 250 index, jumping 13%. | Capita’s shares were the biggest risers in the FTSE 250 index, jumping 13%. |
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