British Airways has signed a multimillion pound application support and testing deal with NIIT Technologies, as part of ongoing attempts to improve its efficiency and cut costs.

Under the three year outsourcing deal, IT solutions provider NIIT will help manage software across a variety of BA’s different business areas. BA already uses NIIT, which operates in the travel, financial services, retail, manufacturing and public sectors, for other undisclosed outsourcing services.

The airline hopes to cut its expenditure on technology in the face of the rising cost of fuel and as the credit crunch threatens to hurt ticket sales. BA is currently in the process of cutting costs, and in March signed a deal with Sita to reduce expenditure by replacing legacy systems with an airfare analysis tool.

British Airways has had a turbulent year when IT systems contributed to the disastrous opening of Heathrow Terminal 5.

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