Australian airline Qantas is in early-stage talks with Accenture over an outsourcing partnership that could see roles across marketing, finance, human resources and other back-office functions potentially move to India
Australian airline Qantas is considering shifting up to 1,000 roles to India as part of a potential outsourcing deal with consulting major Accenture aimed at accelerating the use of artificial intelligence and modernising its operations, The Sydney Morning Herald reported.
Qantas confirmed on Tuesday that it was in early-stage discussions with Accenture over a potential partnership. The proposed arrangement could cover functions including marketing, finance, human resources and other back-office roles.
While reports have suggested that as many as 1,000 roles could be involved, Qantas has not confirmed the number of jobs that may be affected. The airline also stressed that no formal agreement has been signed and no final decision has been made.
A Qantas spokesperson said the airline was exploring ways to accelerate the adoption of technology and AI to modernise how it works and improve outcomes for customers and employees.
The initiative is part of a broader transformation programme called Project iQ.
“We have been exploring partnerships that have the capability to support us and are in early-stage discussions with Accenture, but no formal agreement is in place and no decisions have been made,” the spokesperson said.
More from BusinessAccenture referred questions regarding the potential arrangement to Qantas.
The development comes as Qantas increasingly looks towards artificial intelligence and other technologies to improve efficiency across its operations.
Chief executive Vanessa Hudson has previously highlighted the potential for AI across the aviation business, while arguing that the technology should not be viewed solely as a tool for reducing headcount.
At a media roundtable in May, Hudson said Qantas was examining a wide range of AI applications and had identified more potential use cases than it could implement in the short term.
AI is already being deployed in aviation for functions such as predictive aircraft maintenance, helping airlines anticipate maintenance requirements and improve fleet utilisation. Qantas and its low-cost subsidiary Jetstar use Airbus’ Skywise predictive maintenance platform.
The possibility of outsourcing roles, however, 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. The union has called on the airline to undertake genuine consultations with employees before making any final decision.
ASU assistant national secretary Scott Cowen said reports of potential offshoring were a major concern for union members and called on Qantas to stand by its assurances regarding Australian jobs. Qantas, however, said it had made no pledges on jobs to the ASU and would continue discussions with the union.
The airline has also emphasised that it has expanded its operational workforce in Australia in recent years, including pilots and engineers, and plans to recruit thousands more employees over the coming years.
The potential outsourcing arrangement has also prompted questions over whether moving corporate functions overseas could result in the loss of internal expertise.
Angus Gluskie, managing director of fund manager Whitefield Industrials, warned that outsourcing significant numbers of marketing, finance and HR positions could create risks around skills and managerial control in functions central to a company’s operations.
The discussions come amid broader restructuring and technology adoption 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. Those changes resulted in the reduction of up to 400 roles across the company’s headquarters.
Qantas also opened a product innovation centre in Adelaide last year as it increased investment in technology and innovation.
The aviation industry globally is increasingly turning to AI, automation and outsourcing as airlines seek to improve productivity and manage costs. The sector is simultaneously grappling with structural cost pressures, including volatility in fuel prices and broader geopolitical disruptions.
A final decision on Qantas’ proposed arrangement with Accenture is expected later this year.
