Around 200 of Qantas's IT staff will reportedly be
offered jobs at IBM as the airline outsources yet more of its
Both The Australian Financial Review and the AustralianIT
reported this morning that the airline had confirmed it would ink a
new deal with Big Blue. The deal reportedly involves outsourcing
Qantas's IT program delivery team.
The move was flagged as a potential option back in June.
news comes as a Qantas spokesperson this week did not return
several calls querying the veracity of an anonymous tip circulated
in the Crikey newsletter.
The tipster claimed that a "damning report" published internally
by Qantas's frequent flyer arm had been circulated to senior
managers, flagging an intention to revert to in-house IT services
in the Qantas Loyalty portion of the business. The report, the
tipster wrote, complained of poor quality work from outsourcing
partners that took much longer to carry out and cost two to three
The tipster also said there were internal sensitivities around
the IBM outsourcing discussions being led by Qantas executive
manager of corporate services and technology David Hall.
"At the same time as promising openness and transparency to
staff, Mr Hall has circulated a confidential memo to senior IT
managers highlighting certain words and phrases that are not to be
used in describing outsourcing to staff," the tipster wrote.
"'Cost' and 'Offshoring' are not to be used, while terms such as
'value' are to be emphasised."
Last week Qantas revealed its technology costs had risen
slightly over the past year, reaching $406 million.
The airline has increasingly been handing off internal IT work
to external suppliers over the past few months. In June,
Perth-based IT services outfit ASG revealed it had signed a
five-year, $13 million deal with Qantas to provide application
management services around the airline's financial reporting and
The contract added to another deal that ASG had signed in 2006
to provide IT systems integration and management services for the
airline's eQ Finance project. In April, Fujitsu won a five-year
deal to provide Qantas with all of its user-facing services for
both domestic and international operations. The deal sees Fujitsu
provide and support all Qantas desktop, email, storage and
collaboration systems in Australia and overseas.