In short:
Qantas's announcement to shift 850 local jobs to India is the latest in a wave of white-collar jobs moving offshore.
asserted
announcement → shift → jobs
Some of Australia's biggest companies are outsourcing jobs to India.
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Some → outsource → India
India has marketed its large, mostly English-speaking workforce to businesses for decades, but the nature of the jobs has changed.
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nature → market → jobs
From clothing to credit cards, some of Australia's largest companies are shifting hundreds of jobs overseas, and the trend is not slowing down.
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trend → shift → jobs
NAB, Westpac, Telstra, Bank of Queensland, Coles, Officeworks and Qantas are among companies that have announced plans to cut Australian jobs and move roles to Asia in recent years — most under so-called global capacity centres (GCCs).
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that → announce → centres
GCCs are subsidiaries of foreign companies that allow them to maintain full control of their business rather than contracting a third party.
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them → allow → party
Bunnings announced plans for a GCC in India in 2020, but has not yet announced job cuts.
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Bunnings → announce → cuts
Kmart opened one in 2018.
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Kmart → open → 2018
The companies said roles needed to move to cope with rising costs and the rapid adoption of artificial intelligence (AI).
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roles → say → intelligence
The Finance Sector Union has called the cuts "callous" and "ruthless" in the face of soaring corporate profits.
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Union → call → profits
India can't get enough of it.
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India → get → it
From call centres to corporate hubs
India is home to about 50 per cent of the world's GCCs, the latest evolution of offshoring, which began with contracting out call centre work decades ago.
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which → begin → work
In 2024, Australia's high commissioner to India, Philip Green, estimated Australian companies directly employed about 30,000 people in Indian GCCs.
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companies → estimate → GCCs
"In very simple terms, a GCC is setting up another office for a company.
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GCC → set → company
Instead of hiring contractors, you're hiring employees," said Lalit Ahuja, the chief executive of ANSR, which helps companies establish GCCs in India.
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companies → hire → India
Mr Ahuja said tighter immigration restrictions were accelerating the trend.
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restrictions → say → trend
"We all know immigration is not sustainable.
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immigration → know → ?
At some point, it will become very restrictive."
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it → become → point
Rather than waiting for skilled workers to migrate to Australia, he said, companies were moving operations to where the talent was.
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talent → wait → operations
The shift could eventually extend to senior executives.
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shift → extend → executives
"It's quite conceivable that one day for a large Australian company, they may have some key leaders sitting in Bangalore or Hyderabad," Mr Ahuja said.
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Ahuja → have → Bangalore
Arya Roy Bardhan, a junior fellow at the Observer Research Foundation in Kolkata, said that while India did offer skilled workers, it was the cost savings that attracted foreign companies.
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that → say → companies
"If you're comparing India with Australia, the average wage is one third of what you have to pay in Australia," he said.
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he → compare → Australia
"The only incentive for opening a GCC in India is cost savings.
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incentive → open → India
Dr Kanupriya, an assistant professor in the Department of Economics and Trade Policy at the Indian Institute of Foreign Trade, said it was a combination of both.
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it → say → both
"It's a cost-saving measure, and it taps into the diverse talent pool that India has to offer.
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India → save → that
Why India wants these jobs
India has marketed its large, mostly English-speaking workforce to foreign businesses since the 1990s, offering cheap wages and tax breaks to offshore companies.
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India → want → companies
By the early 2000s, more technical jobs shifted to the country as India prioritised tech and engineering graduates.
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India → shift → graduates
With the world's largest youth population and about 830,000 engineering and technology graduates annually, according to India's Ministry of Education, creating jobs is a major priority.
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creating → accord → jobs
"Post-COVID, people realise this workforce has the skill and technical expertise needed to work with new products and even innovate," Mr Bardhan said.
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Bardhan → realise → products
Time zones also did not matter when the work was not customer service.
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work → matter → ?
"Now you want us for tasks which can be done overnight, we don't have to operate at the same hours," he said.
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he → want → hours
Before COVID, Mr Ahuja said his pitch to foreign companies was "anyone, any work, anytime, anywhere".
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pitch → say → companies
With remote work normalised, companies became more comfortable running operations across borders.
"You can run the company from India and have stores in Australia," Mr Ahuja said.
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Ahuja → normalise → Australia
The fierce competition for jobs between India's states was also attracting companies.
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competition → attract → companies
Bengaluru in the state of Karnataka has long held the title of India's Silicon Valley, but incessant demand has expanded GCCs into at least seven other states.
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demand → hold → states
Indian Finance Minister Nirmala Sitharaman said earlier this year the country was home to more than 2,100 GCCs employing 2.3 million people.
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country → say → people
More Australian business to shift to India
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business → shift → India
Mr Ahuja predicted more Australian companies would establish Indian operations over the next three years.
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companies → predict → years
While Australian businesses have been slower to embrace GCCs than their US counterparts, he believed they could benefit from adopting more advanced models.
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they → embrace → models
…and 17 more, not listed.
The Aporia
