Australia's national carrier is changing how it runs its corporate offices, and much of that work is headed to India. Qantas Airways plans to cut about 850 jobs and outsource a range of back-office functions under a multi-year technology partnership with consulting firm Accenture, according to reports. Most of the affected positions are expected to move to Accenture-operated teams in India, and some functions will stay in Australia.

The changes start from mid-2027. The first departments affected are finance, procurement, human resources and marketing. For an airline better known for its planes and lounges, this is a major overhaul of the work that goes on behind them.

A billion-dollar tech bill and a tangle of old systems

The main reason is technology. In a message to employees, Chief Executive Officer Vanessa Hudson said Qantas spends more than A$1 billion every year on technology but still depends on more than 1,000 legacy applications developed over several decades.

"These systems were not designed to work together and have become increasingly complex to maintain," Hudson said, according to reports.

Under the agreement, Accenture will modernise the airline's back-end systems, business processes and data infrastructure as part of a wider transformation programme. Over time, the functions it takes over will be reshaped through automation and artificial intelligence to cut duplication and make corporate operations more efficient.

Hudson called the pace of technological change and AI adoption unprecedented. She said Qantas needed to adapt to stay competitive.

What it signals for India

For India, the deal points to a broader shift. Global companies increasingly send India more than routine transaction processing. They now want teams that can run core corporate functions and rebuild them with AI. When a legacy carrier like Qantas places finance, HR and procurement work with Indian delivery teams, it shows how far that trust has grown. It also shows the work is moving towards technology-led transformation, not only cost savings.

For Australian employees, the news is much harder. "This is hard news for some, and I'm sorry for the uncertainty it brings," Hudson said in an internal email to staff. The airline has said it will consult with staff and unions before making the changes and will try to redeploy affected employees where it can. Because the timeline starts in 2027, negotiations could be long.

Part of a wider aviation reset

Qantas is not alone. Aerospace manufacturers and airlines are increasingly reshaping their operations to improve efficiency. On Monday, Boeing said it would cut about 5 per cent of its commercial airplane workforce through layoffs and attrition. The company had slowed its plans to raise jet production and said factories and suppliers needed more time to stabilise output.

Together, the two announcements show where the industry is heading. Companies are trimming headcount, consolidating systems and relying more on technology partners to run work that used to sit in-house. In Qantas's case, an Australian restructuring will create new work for Indian teams that know both the old systems and the AI tools replacing them.

With inputs from IANS