Qantas yesterday announced it will outsource internal IT applications support and maintenance to Satyam Computer Services and Tata Consulting Services.
The transition will take over 15 months and Qantas will shed some 340 Australian IT staff.
Qantas chief executive officer Geoff Dixon said it would require an investment of up to $100 million to develop an inhouse capability, an investment it could not support.
"The applications support and maintenance work relates to over 300 applications that use a wide range of computer languages and technologies, and much of this work involves ageing systems," Dixon said.
"Satyam and Tata have established operations in Australia, with a third of the positions undertaking Qantas' work to remain onshore.
"We will continue to keep staff fully informed throughout the transition process, and will provide support to them through this change."
Dixon said Qantas has a comprehensive security policy in place, including stringent data security controls which extend to all suppliers including Satyam and Tata.
"Qantas, like almost every airline in the world, already has outsource arrangements for data," Dixon said.
"We have had a customer data offshore facility in Germany for four years with no breaches of privacy.
"Similarly we outsourced our data centre operations to IBM two years ago with no issues."