Problem: Continental Airlines
Continental Airlines entered into a ten-year outsourcing agreement with EDS when Continental Airlines was suffering financial setbacks and bankruptcy. This agreement was initially designed to provide expertise to Continental in an area that was not a core competency and to also help cut costs for the airline. However, Continental successfully turned their business around in the mid-1990s, and this case discusses the implications this has for the relationship between Continental and EDS. While this relationship had worked well initially, there were some strains developing by the mid-1990s, and this case focuses on where Continental should have gone with their relationship with EDS.
What are the advantages to a firm like Continental Airlines of outsourcing their IT operations? What are the disadvantages?
Why is necessary for top managers to support the implementations of IT innovations?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.