BA business logic under scrutiny

When we first saw a leaked memo from British Airways' IT department last week we knew we had a really big story on our hands. One of the UK's largest IT spenders is freezing projects and laying off staff.

The story will resonate across this industry - with IT managers, users and suppliers all taking note. And for a contractor community that has been wrestling with the consequences of IR35, news that 150 of their peers will be competing for new projects this summer is yet another piece of news they could have done without.

Perhaps the only issue we didn't think was on the agenda was race. Yet judging by a couple of early morning 'reader comments' posted in relation to this story, we have crossed the line and put a racist slant on the story.

That's not an accusation we take lightly. And it's also not an accusation for which we believe we are guilty.

The issue in the BA story is not about race. It's about a questionable IT strategy.

It is about laying off contractors who have been working on projects for a number of years, who have built up unrivalled expertise and knowledge about BA systems and processes, and who are still required - if our sources are to be believed - to do a job. Plans to replace them are a tacit acknowledgement of that fact.

We did quote one source who said: "Indian DBAs are nowhere up to the mark of British DBAs." That's a personal view and certainly not the view of silicon.com. We have always been very positive about the role contractors from beyond these shores can play in the UK economy.

When new contractors come in, we expect them to receive competitive pay and perks. The question here is not who makes better contractors but more simply: does BA need new contractors? To bring people in for cost-cutting reasons is a short-sighted strategy BA will live to regret.