Australian banks are increasingly expanding their operations in India, investing billions of dollars and employing tens of thousands of staff to take advantage of lower costs and access to specialized technology skills. This trend has accelerated over the past five years, with major banks establishing and growing global capability centres, primarily in Bengaluru, India’s southern technology hub known as the Silicon Valley of India.
Regulatory filings reveal that ANZ, Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), and Macquarie have collectively paid their Indian subsidiaries around $1.9 billion over the last year, with 23,000 employees on their local payrolls. In addition, the banks spend about $200 million annually on contractors in India. These centres perform vital functions related to technology development, back-office support, lending, and deposit operations, becoming integral to the banks' overall business models.
The expanding offshore footprint has facilitated significant job cuts in Australian operations, particularly in the case of NAB, which recently announced plans to reduce 2,500 roles domestically. NAB’s offshore presence now extends to over 7,000 staff across India and Vietnam. Commonwealth Bank’s Indian workforce has grown from almost none pre-pandemic to nearly 7,000 employees, with the bank investing approximately $250 million in a new Bengaluru campus scheduled to open in mid-2027. ANZ has had a presence in India since the 1980s but has greatly increased its scale and shifted focus from processing to value-added technology work, employing roughly 9,100 staff in India and Manila. Macquarie, which operates an office in Gurugram and is expanding its presence in Hyderabad, has maintained about 200 workers in its Indian office, although it has reportedly shifted some roles back to Australia recently.
Industry observers note that the banks’ offshoring strategies are evolving beyond mere cost reduction. While wage differentials remain significant—back-office workers in India earn about half of what technology staff receive locally, and a fraction of what Australian employees earn—banks increasingly seek highly skilled tech workers unavailable in Australia. Hiring practices have shifted from reliance on contractors to bringing positions in-house, including advanced roles in artificial intelligence and engineering.
However, the rapid growth of offshore operations has presented challenges. Leadership turnover at senior levels within Indian subsidiaries has been notable, with several top executives at CBA and ANZ departing within short periods. Cultural integration and employee relations have also been areas of focus, with banks investing in training programs, social events, and graduate recruitment to build cohesive teams. Yet, differences in labor laws have prompted disputes, such as an unfair dismissal case filed by an Indian employee against NAB that is being adjudicated in India's courts rather than Australia’s.
The increased offshoring of jobs has drawn criticism from Australian staff and political figures. NAB’s recent domestic job cuts, juxtaposed with its expanding Indian and Vietnamese workforce, have raised internal tensions and public scrutiny. At CBA’s recent shareholder meeting, CEO Matt Comyn denied plans to increase India-based employment further, despite persistent questions. Members of the Australian parliament, including Labor MPs Tom French and Ed Husic, have expressed concern over the outsourcing trend and indicated plans to question bank executives in forthcoming parliamentary inquiries.
As the major Australian banks deepen their investments in India, they face the ongoing challenge of balancing global efficiency and local sensitivity amid heightened political attention and workforce apprehension.