Qantas airline, one of the most important airlines in Australia, has announced that as part of a multi-year agreement, it will outsource approximately 850 jobs at its headquarters to technology company Accenture. It is expected that most services related to these jobs will be provided by teams based in India.
Purpose of Outsourcing and Technological Changes
This decision is part of a broader plan to update technology systems and prepare the business for the growing role of artificial intelligence in the travel industry. Initial changes will be implemented by mid-2027 and will include finance, procurement, human resources, and marketing sectors. In this regard, some services in these areas will be transferred to Accenture, primarily performed by teams based in India and some in Australia.
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Vanessa Hudson, CEO of Qantas, informed employees in a memo that these changes are aimed at simplifying operations and improving efficiency. She added, "I know this news is difficult for some, and I apologize for the uncertainty it brings. Our goal is to modernize the technology behind the business and increase efficiency so that we can continue to invest in our customers, employees, and our future."
Criticism and Concerns from Unions
This outsourcing plan has faced serious criticism from the Australian Services Union (ASU). The union has expressed concerns about the transfer of jobs and skills overseas. Angus McFarland, Secretary of ASU NSW, stated, "These changes are concerning not only for workers but for all Australians, as no Australian will benefit from this. This is about transferring jobs overseas and losing skills in our national airline."
Additionally, Scott Quinn, Deputy Secretary-General of ASU, announced that employees were told in August that there were no plans to transfer Australian jobs overseas. He added, "Earlier this year, Qantas directly informed us that there were no plans for outsourcing jobs. Today, they have informed hundreds of employees that their work will primarily be done by people overseas."
The union is also calling for more details about the number and types of jobs affected, the roles that will remain in Australia, and support for reskilling employees. They are also requesting severance packages that take into account workers' years of service.
Qantas has stated that it will engage in a consultation process with affected employees and is striving to redeploy as many employees as possible through reskilling and job opportunities in other parts of the group.
The transformation in Qantas's technology comes as the company seeks to address the complexities of its existing systems. Hudson pointed out that Qantas has over 1000 legacy applications that are not designed for collaboration. She added, "Modernizing these systems and connecting data among them is the next critical step."
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