Qantas the latest in list of companies to outsource jobs to India

Qantas announced in 2021 that it would relocate 850 local jobs to India, joining a growing trend of major Australian companies outsourcing their white-collar positions overseas. India's large, English-speaking workforce has long attracted businesses, but the nature of the jobs has evolved over time. Companies like NAB, Westpac, Telstra, Bank of Queensland, Coles, Officeworks, and Qantas have shifted hundreds of jobs to Asia in recent years, largely under global capacity centers (GCCs).

GCCs are subsidiaries that grant foreign companies complete control over their operations instead of contracting third parties. Bunnings and Kmart have also established GCCs in India, though Bunnings has not yet announced job cuts. According to India's high commissioner to Australia, Philip Green, Australian companies directly employed about 30,000 people in Indian GCCs in 2024.

Lalit Ahuja, CEO of ANSR, noted that tighter immigration restrictions are pushing companies to move operations to India, where skilled workers are more readily available. The shift could even extend to senior executives, with some large Australian companies potentially having key leaders in Bangalore or Hyderabad. India offers significant cost savings, with an average wage that is one-third of what is paid in Australia.

Dr Kanupriya of the Indian Institute of Foreign Trade emphasized that both cost savings and access to a diverse talent pool are driving factors. With time zones no longer being a concern for non-customer service tasks, businesses are more inclined to operate across borders. The expansion of GCCs extends beyond large corporations, with startups also considering establishing them, even with as few as five employees.

Despite AI's potential to reduce the workforce in these roles, analysts predict that revenue will continue to grow faster than headcount, leading to increased productivity.