Qantas Outsourcing Discussions
Qantas Explores Offshore Outsourcing of Up to 1,000 Back-Office Roles Via AI Plan
Anonymous
Key Points
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Project iQ is being led by Qantas' Chief Technology, AI and Transformation Officer, Rachel Yangoyan, with involvement from CEO Vanessa Hudson and other senior executives.
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Qantas’ Adelaide technology hub is described as opening next month and is expected to base more than 400 technology roles there.
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The Australian Services Union has pressed for urgent talks, insisting there is no plan to offshore Australian jobs and urging Qantas to honour commitments on local employment.
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Past outsourcing of ground handling during the pandemic was ruled unlawful and led to compensation and penalties, fueling union concerns about current outsourcing discussions.
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The potential Accenture arrangement at Qantas has been likened to Telstra’s collaboration with Accenture, which included outsourcing some roles and involved an Accenture-driven AI investment; Telstra reportedly cut more than 200 jobs as part of that deal.
Qantas is in early-stage talks with consulting giant Accenture to move up to 1,000 back-office jobs to India, according to The Australia Today and Bandt. The plan, known internally as Project iQ, would shift roles in marketing, finance, and HR offshore as part of a broader AI-driven overhaul of the airline's operations.
Qantas insists no final decisions have been made. But unions are already alarmed — and pointing to a painful history of outsourcing disputes that ended in court.
Project iQ: What Qantas Is Planning
Project iQ is led by Qantas' Chief Technology, AI and Transformation Officer Rachel Yangoyan, with CEO Vanessa Hudson also involved. The project aims to use AI to modernise back-office functions. The Market Online reports the discussions with Accenture could see hundreds of Australian corporate roles relocated to India.
The potential deal has been compared to Accenture's arrangement with Telstra. In that case, Bandt reports Telstra cut more than 200 jobs as part of an AI-focused collaboration with Accenture. Qantas has not confirmed any similar headcount cuts, saying the project is about efficiency — not just reducing jobs.
Qantas Points to Local Jobs Amid Offshore Concerns
Qantas is pushing back against the narrative that Project iQ is purely a cost-cutting exercise. The airline is opening a new technology hub in Adelaide next month. That hub is expected to house more than 400 technology roles, according to The Australia Today.
Leadership says AI is a tool to improve outcomes for customers and staff — not a vehicle for mass layoffs. The airline stresses it continues to invest in Australian operational and technology roles. But no firm commitments have been made about how many jobs could ultimately move offshore.
Unions Warn of Broken Promises on Local Jobs
The Australian Services Union has called for urgent talks with Qantas. The union insists there is no agreement to offshore Australian jobs and is pushing the airline to honour its commitments on local employment. 7News reported the outsourcing plan is already drawing comparisons to past disputes.
During the pandemic, Qantas outsourced its ground handling operations. Courts later ruled that move unlawful. The airline was ordered to pay compensation and penalties. Unions say that history gives them every reason to push back hard against the current discussions before any deal is signed.
What Happens Next as Talks Remain Unofficial
The Market Online notes that no formal deal with Accenture exists yet and the full scope of Project iQ remains unclear. Qantas has not set a timeline for any decisions. The airline says it will keep engaging with staff and unions as plans develop.
For now, the uncertainty is the story. Up to 1,000 workers in marketing, finance, HR, and sales could be affected if talks progress. Unions, workers, and investors will be watching closely to see whether Project iQ leads to a formal offshoring deal — or quietly fades away.
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