World Technology

Qantas is sending 850 jobs to India, and says the reason is AI

Finance, procurement, people and marketing roles go first, from mid-2027. The airline spends over A$1bn a year on technology and runs more than 1,000 systems that were never built to work together.

Qantas is sending 850 jobs to India, and says the reason is AI

Qantas will outsource 850 local corporate jobs to the consulting firm Accenture, with most of the roles moving to India, as the airline accelerates its investment in AI.

Chief executive Vanessa Hudson told staff in an internal email on Tuesday: "this is hard news for some and I'm sorry for the uncertainty it brings".

What goes, and when

The cuts begin in mid-2027, starting with finance, procurement, people and marketing roles. Those shift "mostly" to teams in India, with "some in Australia".

Hudson said the "scale and speed of change in technology and AI is something none of us has seen in our lifetime". The airline is in talks with unions and staff. Affected employees will be redeployed "where possible", including into new roles in Australia.

The announcement came days after a market update in which Qantas flagged fare increases and flight cuts because of higher fuel costs.

850 jobs, 1,000 systems
Qantas spends over A$1bn a year on technology and runs more than 1,000 legacy applications never designed to work together. Graphic: Tech BD.

The number that explains the deal

Qantas spends more than A$1bn (about US$691m) a year on technology, and Hudson said its back-end systems needed upgrading.

"Like every airline, we run on technology built up over decades for a different era, including more than 1,000 legacy applications that were never designed to work together," she said.

That sentence is the actual story. A thousand applications accumulated over decades is not a problem AI solves; it is a problem that makes AI almost impossible to apply, because there is no clean place to put it. The deal with Accenture is first and foremost a systems-consolidation contract — "redesign and simplify parts of how our corporate functions work and reduce duplication", in Hudson's words — and the company says that "in time" the transferred work will be "transformed further with automation and AI".

Two different things in one announcement

It is worth separating them, because the framing does not.

Moving 850 roles to a lower-cost country is labour arbitrage, and it has been standard practice for thirty years. Replacing a thousand legacy applications is a modernisation programme. Automating the resulting work with AI is a third thing, and the only one that is new — and it is the one placed furthest in the future, with the softest wording.

When a company attributes job cuts to AI, it is worth asking which of the three is actually happening this year. Here, by the airline's own timeline, it is the first two.

Why this matters in Dhaka

This is the business Bangladesh has been trying to win. The country's IT and business-process exports are a declared national priority, and the pitch has always been cost plus English-language capacity — the same pitch India made, earlier and at larger scale.

The Qantas deal is a reminder of what that market now looks like. The work is bundled into multi-year contracts with global consultancies rather than placed directly, and the buyer is explicitly planning to automate a share of it later. Competing on price alone is competing for the part that is scheduled to disappear.

Worth noting too that the consultancy taking the work has every reason to automate it. Accenture is paid for an outcome over several years, so each role it can replace with software becomes margin rather than saving passed back.

Source: BBC

Written by

Tech BD

Tech BD is an independent technology publication based in Dhaka, published in English and Bangla. Articles appear under the masthead rather than under individual bylines; corrections and source questions reach the editor at info@tech-bd.com.