Qantas offshoring talks reignite outsourcing debate as AI transformation gathers pace

Qantas (ASX:QAN) is this week facing renewed scrutiny after reports it is considering moving hundreds of Australian back-office roles to India as part of a broader technology and artificial intelligence transformation, although the airline insists no decisions have been made.

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The airline is in early-stage discussions with consulting giant Accenture over potential changes affecting functions including finance, marketing and human resources. Estimates suggest as many as 1,000 positions could ultimately be impacted if the proposal proceeds, though Qantas says no formal agreement has been reached.

The initiative forms part of the company’s internal transformation program, known as Project iQ, which is focused on expanding the use of AI and automation to modernise operations and improve productivity.

Qantas has previously said artificial intelligence would be used across a broad range of business functions rather than solely to reduce headcount.

The reports have drawn an immediate response from the Australian Services Union, which has called for urgent talks with Qantas management and warned against using AI as justification for moving Australian jobs offshore. The union said it expects the airline to honour previous assurances that there are no plans to offshore local positions.

The issue also revives memories of Qantas’ controversial outsourcing of ground handling operations during the pandemic, a decision later ruled unlawful that resulted in substantial compensation and penalties.

Qantas has defended its broader employment record, noting it has added thousands of operational jobs across Australia in recent years, including pilots, engineers and cabin crew, while a new Adelaide technology hub is expected to create more than 400 local technology roles.

The latest reports arrive just weeks before the airline’s FY26 results, scheduled for 27 August, with investors watching closely for further commentary on productivity initiatives, AI investment and cost management.

The proposed changes also come as Qantas continues reshaping its business more broadly. This week the airline confirmed the sale of its stake in Jetstar Japan through a share buyback arrangement, allowing it to redirect capital toward its domestic and international operations, while elevated fuel costs continue to weigh.

QAN shares are down -0.53% today, currently trading at $10.26/sh.

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