Qantas is currently in discussions regarding a potential partnership with consulting firm Accenture that could see up to 1,000 back-office roles moved to India. Known internally as Project iQ, the initiative aims to leverage artificial intelligence and automation to streamline administrative functions such as human resources, finance, and marketing. While the airline has confirmed it is exploring ways to accelerate the use of technology to modernize its operations, it maintains that no final decision has been made regarding the scale or specific functions involved.
The proposal comes as the airline seeks to manage rising operational costs, including a $60 million increase in its annual wages bill following recent industrial relations changes. By shifting routine administrative tasks to offshore service centers, the company aims to improve efficiency and offset the significant capital expenditure required for its ongoing fleet renewal program. This strategy reflects a broader trend among major Australian corporations, including banks and telecommunications firms, that have increasingly turned to offshore staffing to maintain competitive margins.
For the workforce, the potential shift has created significant uncertainty. While Qantas has emphasized that its AI strategy is intended to enhance overall efficiency rather than simply reduce headcount, the prospect of 1,000 roles being impacted has drawn scrutiny from unions and employees. The airline has stated that it remains committed to transparency throughout the process and is currently evaluating various use cases for AI that could improve customer service and operational reliability.
As the airline continues its internal review, the final scope of Project iQ remains subject to change. A decision on whether to proceed with the outsourcing arrangement is expected before the end of the year. In the meantime, the company continues to invest in customer service improvements, a key priority for leadership as it works to rebuild public sentiment and operational performance.