Australian airline Qantas is considering shifting up to 1,000 roles to India as part of a potential outsourcing deal with consulting firm Accenture, aimed at accelerating artificial intelligence adoption and modernising its operations, according to a report by The Sydney Morning Herald.
Qantas confirmed on Tuesday that it is in early-stage discussions with Accenture regarding a potential partnership, which could cover functions such as marketing, finance, human resources and other back-office roles. While reports have suggested that as many as 1,000 positions could be involved, Qantas has not confirmed an exact figure and stressed that no formal agreement has been signed and no final decision has been made.
A Qantas spokesperson said the airline is exploring ways to accelerate the adoption of technology and AI to modernise its operations and improve outcomes for both customers and employees. The initiative falls under a broader transformation programme known as Project iQ. The spokesperson reiterated that discussions with Accenture remain at an early stage, with no formal agreement currently in place. Accenture, for its part, referred questions about the potential arrangement to Qantas.
The development comes as Qantas continues to expand its use of artificial intelligence across operations. CEO Vanessa Hudson has previously spoken about AI’s broad potential within the aviation business, while emphasising that the technology should not be viewed purely as a tool for reducing headcount. At a media roundtable in May, Hudson noted that Qantas had identified more potential AI use cases than it could realistically implement in the short term. AI is already used in areas such as predictive aircraft maintenance, with Qantas and its low-cost subsidiary Jetstar utilising Airbus’ Skywise platform to anticipate maintenance needs and improve fleet utilisation.
The possibility of outsourcing roles has raised concerns among Australian unions. The Australian Services Union (ASU) said Qantas had informed it that there were no plans to offshore Australian jobs under Project iQ, while urging the airline to engage in genuine consultation with employees before finalising any decision. ASU Assistant National Secretary Scott Cowen said reports of potential offshoring were a significant concern for union members and called on Qantas to honour its assurances regarding Australian jobs. Qantas, however, clarified that it had made no formal pledges on jobs to the ASU and would continue engaging with the union. The airline also noted that it has expanded its operational workforce in Australia in recent years, including pilots and engineers, and plans to recruit thousands more employees in the coming years.
The proposed arrangement has also raised broader questions about whether shifting corporate functions overseas could result in a loss of internal expertise. Angus Gluskie, Managing Director of fund manager Whitefield Industrials, cautioned that outsourcing large numbers of marketing, finance and HR positions could introduce risks around skills retention and managerial control in functions central to a company’s operations.
This development follows a period of broader restructuring at Qantas. In December 2024, the airline announced a reduction in the size of its group leadership team as part of efforts to simplify its organisational structure, resulting in the elimination of up to 400 roles at its headquarters. The airline also opened a product innovation centre in Adelaide last year as part of its increased investment in technology and innovation.
The move reflects a broader trend across the global aviation industry, where airlines are increasingly turning to AI, automation and outsourcing to improve productivity and manage costs amid ongoing structural pressures, including fuel price volatility and geopolitical disruptions. A final decision on Qantas’ proposed arrangement with Accenture is expected later this year.