SYDNEY- Qantas (QF) is considering outsourcing up to 1,000 corporate roles to India through a potential partnership with Accenture as part of its AI-driven transformation program. The discussions come as the airline continues to modernize operations while reducing long-term costs.
The proposed initiative, known as Project iQ, focuses on back-office functions rather than frontline operations. Qantas, headquartered near Sydney Airport (SYD), said discussions remain at an early stage, and no final decision has been made, AFR reported.
Qantas Advances AI-Led Business Transformation
Qantas is holding advanced discussions with global consulting firm Accenture over a potential outsourcing agreement that could transfer up to 1,000 back-office positions to India. The proposal forms part of the airline’s broader digital transformation strategy, internally known as Project iQ.
According to people familiar with the discussions, the project would affect functions including marketing, finance, human resources, and other administrative departments.
The airline is expected to decide later this year whether to proceed with the proposal and determine the number of roles that could be impacted.
Project iQ is being led by Qantas Chief Technology, AI and Transformation Officer Rachel Yangoyan, with direct involvement from Chief Executive Officer Vanessa Hudson, Chief Financial Officer Rob Marcolina, and other senior executives.
A Qantas spokesperson confirmed that the airline is exploring ways to accelerate the adoption of artificial intelligence and advanced technologies to improve business efficiency.
The airline stated that discussions with Accenture remain preliminary, emphasizing that no formal agreement has been signed and no final decisions have been made regarding workforce changes.
Focus on Technology and Customer Experience
Qantas said its technology strategy is designed to modernize internal operations while improving outcomes for both customers and employees.
The airline highlighted that it has added thousands of operational positions across Australia in recent years, including pilots, engineers, and other frontline staff. It also expects to continue hiring operational employees as its fleet and network expand.
According to sources familiar with Project iQ, the objective is to automate routine corporate processes and improve productivity, allowing greater investment in customer-facing operations rather than administrative functions.
The airline has already expanded its Australian technology workforce and opened an innovation hub in Adelaide, where approximately 420 employees are expected to work on digital and technology initiatives.
Part of a Broader Corporate Trend
Qantas is not alone in reviewing offshore support operations.
Several major Australian companies have announced similar initiatives over the past year as they seek to lower operating costs while increasing technology capabilities.
Woolworths confirmed it is evaluating the transfer of certain head office functions overseas to remain competitive against international retailers.
National Australia Bank also announced plans to recruit more than 1,000 employees across its operations in India and Vietnam.
Officeworks has begun restructuring parts of its business, including relocating selected customer service functions to India and the Philippines.
Telstra has taken one of the largest steps by signing a A$700 million partnership with Accenture that includes extensive AI collaboration. Although Telstra eliminated thousands of jobs, the company stated that the agreement would strengthen its access to specialized artificial intelligence expertise.
Qantas Has Previous Outsourcing Experience
The proposed agreement would not represent Qantas’ first major outsourcing initiative involving India.
In 2006, the airline signed a contract valued at approximately A$188 million with Tata Consultancy Services and Satyam Computer Services. That agreement resulted in hundreds of technology roles being outsourced as part of the company’s IT modernization efforts.
More recently, Qantas has significantly expanded its use of artificial intelligence across multiple business functions.
Rachel Yangoyan assumed responsibility for technology transformation following the major cyberattack that exposed data belonging to around six million customers after attackers targeted a Manila-based call center.
The airline has since accelerated investments in cybersecurity, digital infrastructure, and AI-enabled operational systems.
Balancing Costs with Workforce Investment
Qantas has increasingly relied on workforce restructuring to manage operating costs while continuing its long-term investment strategy.
Australia’s industrial relations reforms introduced in 2023 required companies to implement “same job, same pay” provisions for labor hire employees. Qantas reported that these changes increased its annual wage bill by approximately A$60 million during the financial year ending June 30, 2025.
The airline previously stated that it intended to offset those additional labor costs through efficiency improvements and cost savings while continuing investments in fleet renewal and customer service.
Notably, the positions potentially affected under Project iQ are primarily corporate support roles that generally are not represented by unions.
Fleet Renewal Remains a Strategic Priority
While reviewing corporate operations, Qantas continues to invest heavily in its long-term fleet modernization program.
The airline is spending approximately A$15 billion replacing older aircraft with new-generation models that offer improved fuel efficiency, lower operating costs, and enhanced passenger comfort.
Those aircraft contributed to an underlying profit of A$2.39 billion during the previous financial year, representing the airline’s second-highest annual underlying profit on record.
However, Qantas also warned earlier this year that rising global fuel prices following geopolitical tensions involving the United States and Iran would require temporary reductions in flight capacity across parts of its network.
Despite these challenges, industry analysts continue to view Qantas as financially resilient due to its strong balance sheet, ongoing fleet renewal, and continued investment in technology and operational efficiency.
Bottom Line
Project iQ reflects Qantas’ continuing effort to modernize its business through artificial intelligence, automation, and digital transformation.
While discussions with Accenture remain preliminary, the proposal highlights how major airlines are increasingly using technology to streamline corporate operations while prioritizing investment in frontline services, fleet renewal, and long-term competitiveness.
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