OUTSOURCING
Airline confirms “early stage” discussions with Accenture under an AI-led transformation plan, reviving offshoring sensitivities four years after a $210 million payout to illegally sacked ground crew.
Qantas is in discussions with Accenture over a plan, internally known as Project iQ, that could see up to 1,000 back-office positions, including human resources, finance and marketing roles, moved offshore to India, the Australian Financial Review reported on 3 August, citing sources familiar with the talks.
A Qantas spokesperson confirmed the talks but stressed no agreement has been reached. “We have been exploring partnerships that have the capability to support us and are in early stage discussions with Accenture, but no formal agreement is in place and no decisions have been made,” the spokesperson told the AFR.
What’s on the table
Project iQ is reportedly being led by Qantas chief technology, AI and transformation officer Rachel Yangoyan, with a decision expected later this year. The proposed deal echoes an arrangement Accenture struck with Telstra in February, part of a $3 billion AI joint venture that also resulted in more than 200 roles being cut at the telco.
Qantas said the move is part of a broader push to “accelerate the use of technology and AI” to modernise its operations. The airline has pointed to continued growth in operational hiring, including pilots and engineers, as evidence that its overall Australian headcount is not shrinking.
A familiar flashpoint
The reported plan lands in sensitive territory for Qantas. In 2020 the airline made about 1,700 ground handling staff redundant by outsourcing the role at 10 airports. Courts later found the move unlawful, and in 2024 Qantas agreed to pay $120 million in compensation to roughly 1,820 affected workers on top of a $90 million Federal Court penalty, taking the total to $210 million, the largest corporate penalty in Australian history.
CEO Vanessa Hudson has previously said she does not see AI’s value solely through headcount reduction, telling reporters earlier this year that automation could help the airline “do things a lot more efficiently” without ruling out its role in future workforce decisions.
Union response
The Australian Services Union, which represents many of Qantas’ corporate and clerical staff, has called on the airline to honour its public commitment that it has no plans to offshore Australian jobs, reiterating that stance after the AFR report.
For an HR sector already navigating AI-driven restructures, Project iQ is a live test of how a major Australian employer squares automation ambitions with a workforce, and a union movement, watching closely for any repeat of 2020.
Sources
Human Resources Director (hcamag.com), “Qantas to outsource HR and back-office roles under Accenture deal,” 4 August 2026: https://www.hcamag.com/au/specialisation/recruitment/qantas-to-outsource-hr-and-back-office-roles-under-accenture-deal/584726
Australian Financial Review, “Qantas eyes major outsourcing move with Accenture-backed AI deal,” 3 August 2026: https://www.afr.com/companies/transport/qantas-eyes-major-outsourcing-move-with-accenture-backed-ai-deal-20260803-p60kzc
Capital Brief, “Qantas denies offshoring, job cuts under Accenture AI deal,” 4 August 2026: https://www.capitalbrief.com/briefing/qantas-denies-offshoring-job-cuts-under-accenture-ai-deal-a71fca3d-0931-46c9-8617-e59f4a06ee99/
