Qantas hands Indians AU$191m in contracts

Qantas hands Indians AU$191m in contracts

Summary: Qantas has awarded Indian outsourcer Tata Consultancy Services (TCS) the lion's share of AU$191 million in contracts for its Applications Services and Transformation (AST) outsourcing program.The airline handed seven year contracts worth AU$120 million and AU$71 million to TCS and Satyam Computer Services respectively.

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Qantas has awarded Indian outsourcer Tata Consultancy Services (TCS) the lion's share of AU$191 million in contracts for its Applications Services and Transformation (AST) outsourcing program.

The airline handed seven year contracts worth AU$120 million and AU$71 million to TCS and Satyam Computer Services respectively.

Tata said in a statement it would be the lead partner for Qantas' transition phase, and would provide support and maintenance to all of Qantas' key IT applications in airport operations and commercial systems.

The Tata contract is believed to be the biggest Indian outsourcing deal in Australia.

Meanwhile Satyam said it will provide application development and maintenance services for over 150 applications.

The awarding of the contracts follows the airline's 12 month review of its IT systems, which culminated in a decision last month to axe 340 IT jobs. More than 200 of those jobs will be sent to India.

At the time Qantas chief executive officer, Geoff Dixon, said: "There is an increasing concentration of suppliers with the skills we need for the ongoing support of these applications, and these suppliers are achieving a scale and efficiency that airlines like Qantas simply cannot match."

Qantas shortlisted the two Indian vendors earlier this year for the contracts making up its AST program.

The contract work begins this month.

Topics: Travel Tech, Outsourcing, India

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22 comments
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  • Lousy Reporting

    I would like to point out that the headline of your article "Qantas hands Indians AU$191m in contracts" reeks of "stirring".

    I have lived and worked in the US and this importance given to the "racial background" of the individuals/companies seems to only be emphasized in Australian journalism.

    How does it matter whether the company was Indian, Taiwanese, British or Moroccan? Qantas outsourcing work is newsworthy but to point to out that it "hands Indians $191m in contracts" gives the impression that its a donation of some sort and that there is to be no value provided. Plus the needless mention of the fact that the company is Indian only serves to stir discussion (even more needless).

    In the US I have seen such discussion among the less educated states (Southern and Mid-West) but never in the progressive, educated, commercially developed ones.

    I would suggest that instead of protectionism, it would be better to invest in educating more people (and ensuring more people complete degrees and post-grad) so that they become more competitive in a capitalist marketplace. That is a long more term strategy for Australia than this bickering.
    anonymous
  • the sellout continues

    well they are indian - thats just pointing out the facts.. enough molly coddling and say it like it is..

    more reasons not to do an IT career....
    anonymous
  • TATA Australian jobs

    Fair enough comment about the title of the article.
    It may have been better to start it as "Qantas awards Indian companies ....".
    However, it appears the level of your moral outrage at the implied racial slur is only matched by the sheer hypocracy of your posting.
    At the end of the article, you accuse Australia of a failure in it's education system by not producing enough degree qualified people with the requisite skills. You then go on to advise Australia to focus on education rather than bickering.
    An implied racial slur if ever there was one from a seasoned bickerer.
    May I remind you that there are a large number of Indian chaps walking around Qantas at the moment asking the locals how their applications work.
    May I also remind you that a large number of foreign nationals receive their degree qualifications in Australia.
    I haven't got anything against the TCS individuals involved. I have mentored them before, and found them to be brilliant blokes.
    But don't pretend there's not a problem with a large iconic Australian organisation such as Qantas handing contracts to overseas players, when there are an abundance of Australians with skills specific to the task out of work.
    Sure, this is globalisation at work, but how about the likes of you and Geoff Dixon stop the charade and admit that this is about the bottom line...not about skills.
    You wonder about Australia's future. Well I can tell you the future at Qantas.
    Wages down,skills down,conditions down,service down,planes down and fat profits up.
    anonymous
  • Time to fly Air India

    If Qantas send work overseas, instead of investing in Australian companies, isn't it time for us to fly Air India?
    anonymous
  • We need to face reality and find solutions

    We need to face realities. The cost of labour in Australia is far higher than that in Asia. We have, in many Australian organisations (private + government) utterly incompetent project management resulting in huge cost blowouts in project costs. Managers who go into "consultants" because they are too scared to make a decision themselves. We have so called "consultants" who simply rort their clients in costs and then take no responsibility. We have legions of staff who are more focussed on conditions of employment than on delivering value for money. We have governments and incompetently run government departments, who spend prolifically without accountability, who produce disparate systems across states (try education and training), waste billions, tax high, tax double and continually raise fees and charges which push employees into wanting higher pay to recover higher post tax costs. Not least, we have a private sector where success and executive remuneration is based on performance often defined as higher profits. Qantas is no different to the banks (oh, we made 700 million or 2 billion profit after tax, mmmm, lets cut costs further, oh lets cut more staff and offshore). So lets dump some more Australian based employees into the unemployment system paid for by taxes on those employed. You think you've got an answer? Great! Spit it out. Lets talk about it. But we need solutions not just complaints. I challenge you!
    anonymous
  • Aussie service jobs - Gone

    Australia
    anonymous
  • indian outsourcing

    as SOON as they speak Hang-up like I do. Maybe a aussie coment as well.
    anonymous
  • Good reporting

    In reply to "Lousy reporting," it's entirely appropriate to refer to the offshorers as being Indian. This type of offshoring distinctively involves Indians and Indian firms, as Nasscom will proudly tell you.

    Secondly, you are wrong to claim there are no references to Indian firms in America. There is more discussion there than in Australia, and more activism too, including legislation aimed at curtailing the depradations of Indian firms, and large fines for the immigration fraud that's often involved in offshoring.

    Third, it is stupid to claim we need more education. The Qantas people aren't getting sacked because they're no good. They're getting sacked because the Indian offshoring firms have managed to sell Qantas managers on the idea they're cheaper.

    Spouting the education line is just a standard part of the Indian PR campaign.

    There are several important issues here that the Howard government is ignoring. These types of offshoring deals depend on abusing the intent of the 457 visa system, and could be managed by fixing that system.
    anonymous
  • Good job Qantas

    Now all you need to do is hire only Indian staff, and new air hostess....and serve Indian food.
    Great job
    Qantas
    anonymous
  • us v them? Not necessarily

    Why is this becoming an 'Indian' thing? The world is getting smaller, thats the way it is these days. Everyone shops around for the best deal.

    how many of you shop on line? Why not support the Aussie companies and shop in Dick Smiths and Harvey Norman? so what if you have to pay 20% more, support the companies that support australia!

    If qantas said they would keep the jobs here but the fares would be higher, would you as a passenger pay a 20% premium to fly an Australian air line? thought not.

    I don't actually agree with outsourcing, I think companies make enough money and should do something for the country and economies that they operate in. However, the reality is, ALL people and companies want costs to be as low as possible.

    I see HSBC have a great mortgage rate at the moment. However, all australians should continue to bank with ANZ, ConBank etc as they are australian. Even if it costs you $100k over the length of your mortgage.
    anonymous
  • Offhsoring can be a great thing

    Yes, Indian companies have had individuals that have committed crimes. So what? Don't you think Australians do? So India (and Philippines and Malaysia etc) are cheaper? Good, this keeps the prices down for us. Any of you using Microsoft? What? Using a foreign operating system? What usign a Dell computer? What flying a Qantas aircraft that had parts made by GE? C'mon, get real and grow up. If we only had Aussie jobs with Aussie products and Aussie services, then we'd live in a pretty pooor country.
    anonymous
  • Why Support Australia?

    If Qantas, and other big name Australian Companies, are not prepared to support Australian companies and people with the necessary skills, then why should be support Qantas.
    I find it hard to justify that companies like this made $100+ million profits, and then say that it costs too much to support Australian jobs.
    Next you know Australian Beer will be made off-shore.
    anonymous
  • Supporting Australia

    It is not about being "all Australian", but it is about supporting Australian companies before flogging it off overseas.
    You make the comment about it making it cheaper? So inline with announcing that these jobs have gone off shore - was there an announcement of price cuts? Not to mention that World Oil Prices have dropped significantly.
    anonymous
  • do I support local? yes I do

    yes I do buy local whenever I can, and yes I also buy online when there are absolutely no local suppliers

    and yes, I also fly Qantas as well, even though their tickets are usually more expensive, with crappier seats and facilities etc, but not anymore.

    why bother supporting Qantas when the only job you will save is Geoff Dixon's?
    anonymous
  • Peter Allen

    Poor old Peter's the real victim here.

    He's going to have to find some one else to sell 'I still call Australia Home' advertising rights to.
    anonymous
  • Made in Australia

    Have any Made in Australia lovers realized that Australian companies are more after the Indian market share than the other way??
    anonymous
  • DURR TURK OUR JURRRBS!!!

    /south park
    anonymous
  • Qantas hands Indians ...

    Qantas is a private company ..interested only in profits. It doesn't care where the jobs go as long as it is profitable.

    Would people be so upset if an American/UK/European company won the contract? Probably not.

    The subject of the topic is racial. I haven't heard of such reporting before.
    Remember that trade between Aus-Ind is totally in Aus favour.
    http://www.dfat.gov.au/geo/fs/inia.pdf
    (7.4bn - 1.24bn)
    I don't read about Indians complaining about it.

    To the author..Grow up!!!!
    anonymous
  • Outsourcing IT

    When we have outsourced everyone where will australians get money to buy the products these companies sell ?. Thinks about that one CIO's

    It seems to me that this coporate rationalisation approach is being applied to everything. Even government departments have this issue.
    In my experience it leads to lower quality service. for instance i rang the HP support line (based in india) and
    inquired about the warranty of a $3000 laser printer. To which they replied it was out of warranty. I found out later on that they had fed me the wrong information.
    anonymous
  • Nice work Qantas!!

    Lets support Australia by sending more aussie jobs overseas, well done you morons!
    anonymous