Bianca De Marchi/AAP Australia faces the risk of losing its 'corporate brain' as an increasing number of high-value jobs are sent offshore. This year, several of Australia's largest and most renowned companies—including Telstra, National Australia Bank (NAB), Officeworks, and Woolworths—have announced decisions to cut domestic jobs while creating new positions overseas, primarily in India, the Philippines, and Vietnam.
Offshoring is not a new phenomenon. For decades, companies have relocated call centres, routine processing, and back-office functions to other countries. However, the current trend involves moving higher-value roles, such as technology development, artificial intelligence (AI), analytics, cybersecurity, finance, digital operations, and even human resources. These are not peripheral activities; they are the core capabilities that enable organisations to innovate, solve problems, and remain competitive. Australian companies are not merely shifting work offshore—they are globalising key components of their corporate brain.
What Has Been Announced?
A series of announcements this year indicates that this offshoring shift is accelerating among leading Australian companies. While exact job numbers are difficult to specify—some details have emerged from leaks reported in the media—here is a snapshot of recent developments:
- Telstra (February 2026): Emails shared by Telstra staff with the ABC revealed that up to 650 Australian jobs could be cut. A spokesperson for a Telstra joint venture confirmed that some roles would move to a 'specialist hub' in India.
- NAB (March and May 2026): The union representing bank workers reported that NAB was preparing to reduce its Australian business division by 170 positions while adding 237 roles in India and Vietnam. NAB confirmed changes are coming but did not specify the number of jobs affected. The Australian Financial Review also reported that NAB could expand its existing Indian and Vietnamese workforces by more than 1,000 employees.
- Officeworks (May 2026): The company confirmed that some Australian jobs would be lost but did not provide details on numbers or locations. The ABC reported that hundreds of technology, support, and back-office roles could be cut in Sydney and Melbourne, with some moving to India and the Philippines and others being replaced by AI.
- Woolworths (June 2026): The retailer confirmed plans to send some of its 10,000 corporate staff offshore. Woolworths did not specify which jobs or how many, but media outlets reported that hundreds of positions, likely in information technology, finance, and human resources, would be affected.
Why Companies Say They Need to Act
Companies argue that these changes are not solely about cost-cutting but also about improving efficiency, accessing specialised skills, and staying globally competitive. For instance, Woolworths stated that the changes were necessary to 'remain competitive with the rapid expansion of international players in Australia’s market' while continuing to offer lower prices to customers. This logic is understandable: technology workers are expensive and often difficult to recruit locally, while countries like India, Vietnam, and the Philippines now have large pools of highly skilled engineers, data scientists, and digital professionals.
What Australia Is Really Losing
The concern is not just that jobs are moving overseas but what Australia might miss out on if this trend continues. The roles increasingly being offshored—such as AI, analytics, cybersecurity, and digital operations—are where firms develop products, analyse customers, improve processes, and build future capabilities. If more of this work moves offshore, Australia risks retaining the brands and customers but gradually losing the expertise needed for long-term competitiveness.
There is also a talent pipeline issue. Many of these positions serve as entry points for graduates and early-career professionals, where they acquire skills and prepare for more senior leadership roles. The effects may not be immediately visible, but if the trend continues, Australia could become more dependent on imported expertise while producing fewer opportunities for career development at home.
What Can Be Done?
Finding and hiring the best global talent has become a normal feature of modern business. The challenge is ensuring that offshoring complements, rather than replaces, Australia’s ability to develop its own workforce. This will require a better-coordinated response from government, universities, TAFEs, and employers.
Australia needs stronger investment in AI, cybersecurity, and digital skills, along with improved graduate pathways and reskilling opportunities. Universities and TAFEs must do more to prepare students for an AI-driven labour market, focusing not only on technical expertise but also on adaptive skills such as critical thinking, problem-solving, digital and AI literacy, and encouraging lifelong learning.
Corporate leaders also have a role to play. Companies based in Australia benefit from Australian consumers and operating in a stable, open economy. While not every role can be expected to stay in Australia, major companies should be as transparent as possible about which capabilities are being moved offshore and how they will continue to invest in local talent development.
Consumers, shareholders, and superannuation funds can also ask harder questions. For example, if high-value work is being sent offshore, what is being done to ensure that the next generation of Australian talent still has a pathway into these careers? Access to global talent can strengthen Australian firms, but greater investment in the next generation of Australian workers—who will shape the country's economic future—is also essential.
