Qantas considers outsourcing 1,000 roles to India

• Qantas is reportedly in discussions to outsource up to 1000 back-office positions to India.
• The airline aims to offset $15 billion in fleet renewal.
• The initiative uses artificial intelligence to overhaul administrative functions while expanding local Australian operational jobs.

Qantas Airways (ASX:QAN) is reportedly negotiating with Accenture (NYSE:ACN) to outsource up to 1000 back-office roles to India under a plan named Project iQ.

The proposal follows the airline reporting an underlying profit of $15 billion on new aircraft.

A Qantas spokesman confirmed the early-stage discussions, with a decision on the initiative expected later this year.

Qantas stated that its annual wages bill grew by $60 million following industrial relations changes, prompting measures to generate cost savings.

Following the announcement, the Qantas share price was unchanged at $10.32.

CEO Vanessa Hudson previously allocated $230 million towards customer service improvements to rebuild sentiment after taking leadership in 2023.

Other major domestic companies including Woolworths (ASX:WOW), National Australia Bank (ASX:NAB), and Telstra (ASX:TLS) have recently executed similar offshore staffing arrangements.