Qantas Airways Ltd. is the largest airlines in Australia. It is finding it difficult to tackle high employee cost and rising price of jet fuel. So, it is now seriously thinking of reducing workforce in Australia and outsourcing the jobs in India. Bloomberg reported:
"Qantas Airways Ltd., Australia's largest airline, plans to shift up to 400 information-technology jobs to India to cut costs and cope with a shortage of skilled workers.
"Qantas Airways Ltd., Australia's largest airline, plans to shift up to 400 information-technology jobs to India to cut costs and cope with a shortage of skilled workers.
Two Indian companies, Tata Consulting Services Ltd. and Satyam Computer Services Ltd., have been short-listed to take over the technology work, the company said.
Qantas plans to sack more than 1,500 staff by Dec. 31 this year, including management, administration and maintenance workers. The company's profit fell 58 percent in the six months to June 30 from a year earlier on employee retrenchment costs and record jet fuel prices. Satyam has already won a contract to provide payroll technology services to the airline this year, and Tata will work on that project."
There has been considerable resentment among workers in US and UK over outsourcing jobs to India. However, I think that the outsourcing plan of Qantas Airways Ltd. will not create too much dissatisfaction in Australia as the country has now one of the lowest unemployment rates in its history. In fact, Australia is suffering from shortage of skilled workers.
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Posted by: Anonymous | October 2, 2006 10:55 PM | Permalink to Comment