Not just call centres: The skilled Australian jobs now moving offshore
Australian companies including Woolworths, Telstra, and NAB are expanding offshore workforces in Asia to access specialized AI and technology talent. According to industry experts, this shift represents a “globalization of the corporate brain,” moving higher-level functions to hubs like Bengaluru to maintain competitiveness and scale capabilities.
Woolworths recently announced it is offshoring roles in finance, human resources, and IT to Asia. A company spokesperson stated the move aims to “remain competitive with the rapid expansion of international players” by increasing productivity and removing complexity.
The retailer has not confirmed how many of its nearly 10,000 corporate employees are affected. However, the business expects to create about 2,500 new roles in Australia and New Zealand stores over the next year.
Other major firms have made similar moves. Telstra announced earlier this year it would cut more than 200 jobs and transition work to a team in India. A spokesperson for Telstra’s joint venture with Accenture said this allows the company to use “advanced AI expertise” to accelerate its data strategy.
Officeworks also announced it is moving customer service work to Manila in the Philippines and a portion of support office jobs to Bengaluru, India. The company reportedly told staff it will use more automation and artificial intelligence to increase efficiency.
Why are Australian businesses moving skilled roles to Asia?
Cost is a factor, but access to specialized skills is now a primary driver. Vikas Kumar, a professor of international business at the University of Sydney, says companies are moving higher-level positions abroad rather than just basic tasks.
Kumar notes that 20 years ago, companies globalized the “limbs or the hands,” but they are now globalizing the “corporate brain.” Firms are establishing their own offshore operations in hubs like Bengaluru to access technology and AI talent at scale.
Helena Li, a senior lecturer at the University of Technology Sydney Business School, says emerging Asian economies have invested heavily in workforce development. She describes an “oversupply of skilled workers” in these regions who can provide high-level expertise at a low cost.
Which cities have become the primary offshore hubs?
Bengaluru, India, serves as a central hub often called the “Silicon Valley of India.” Commonwealth Bank employs more than 6,500 staff there, and Officeworks is establishing a “new global centre” in the city.
NAB operates “global innovation centres” in Hanoi and Ho Chi Minh City, Vietnam, employing roughly 2,000 workers. The bank also employs thousands in Bengaluru and Gurugram, totaling about 17 per cent of its workforce.
The Philippines remains a key location for customer service functions. While China offers a deep talent pool, Kumar noted that varying levels of English proficiency can complicate operations in that market.
How is AI influencing these workforce decisions?
The rapid adoption of AI is reshaping global demand. Helena Li argues that some emerging economies have made AI capability a national priority through training initiatives, moving faster than Australia.
Li says AI has created a new need for workers who can critically oversee and review AI-generated outputs. She claims Australia lacks a strong curriculum to develop the necessary skills in critical thinking and AI verification.
Kumar adds that while the expertise exists in Australia, the country lacks the ability to scale it. He suggests that integrating AI into company functions actually increases the need for more people, rather than fewer.
What may happen next for the Australian workforce?
Australia could build the necessary skills domestically through increased investment in universities, TAFEs, and the corporate sector. Kumar suggests that employers may need to take a more active role in upskilling local workers.
Businesses may continue to use global talent but could do so “responsibly” by investing in Australian graduates for local tech roles. While this could result in higher interim costs, Kumar argues it may lead to more sustainable economic outcomes.
The trend toward owning offshore hubs suggests that these operations are likely to be long-term strategies rather than temporary cost-cutting measures.
Frequently Asked Questions
Which Australian companies are offshoring skilled roles?
Companies including Woolworths, Telstra, NAB, Officeworks, ANZ, and Commonwealth Bank have expanded their offshore workforces.
Where are these jobs being moved?
Primary hubs include Bengaluru and Gurugram in India, Manila in the Philippines, and Hanoi and Ho Chi Minh City in Vietnam.
Why is AI driving this trend?
Emerging Asian economies have scaled AI training more rapidly, providing a larger pool of specialized talent capable of managing and overseeing AI systems.
Do you believe investing in local AI education is the best way for Australia to remain competitive?