NAB plans 1,000 more India, Vietnam hires as Australian job cuts continue

National Australia Bank (NAB) is planning to hire more than 1,000 additional employees across its operations in India and Vietnam as Australian banks continue shifting technology and engineering work offshore while cutting local jobs.

According to reporting by the Australian Financial Review, the expansion would further increase NAB’s presence in Asian technology and operations hubs, where the lender already employs around 7,000 workers.

The move comes at a sensitive time for Australia’s banking sector, with major lenders simultaneously reducing domestic headcount as they pursue cost controls, digital transformation and technology-driven restructuring.

NAB expands offshore workforce footprint

NAB currently employs around:

• 5,000 workers in Gurugram and Bengaluru, India
• 2,000 workers in Hanoi and Ho Chi Minh City, Vietnam

The bank refers to the operations as “innovation centres”, with many employees working in software engineering, technology support and other IT-related roles.

According to the report, NAB added another 100 employees in Vietnam during March and April this year.

The lender’s offshore workforce now represents around 18 per cent of NAB’s total global headcount.

The Australian Financial Review reported that NAB chief executive Andrew Irvine and senior executives visited the bank’s Indian operations during a two-day trip in March, while a person familiar with the matter said the bank was open to adding more than 1,000 additional roles across India and Vietnam.

Offshore hiring grows as domestic jobs shrink

NAB’s expansion plans have drawn criticism because they coincide with job cuts in Australia’s banking sector.

Earlier this year, NAB announced plans to cut 170 domestic roles while simultaneously adding 237 positions across its offshore centres.

The broader industry is also facing scrutiny over similar hiring trends.

According to the report:

• ANZ is removing around 3,500 Australian roles
• Commonwealth Bank of Australia (CBA) increased India headcount to 6,788 employees, up from 2,854 in 2022
• ANZ now employs around 9,000 staff in Bengaluru and another 2,000 in Manila
• Offshore employees account for roughly 28 per cent of ANZ’s workforce

Meanwhile, Westpac continues to rely heavily on external offshore contractors including Genpact and Concentrix, though the bank does not publicly disclose detailed workforce figures.

Union backlash intensifies

The expansion of offshore hiring has triggered criticism from labour representatives and finance sector unions.

Speaking to the Australian Financial Review, Finance Sector Union national assistant secretary Nicole McPherson questioned claims that Australia lacked sufficient local technology talent.

McPherson said many of the same technology and engineering positions being shifted overseas were also among the roles targeted in ongoing domestic banking sector job cuts.

She also warned that growing levels of offshoring could have wider implications for Australia’s workforce and economy.

The issue has become increasingly controversial as banks attempt to balance digital transformation with shareholder pressure to control costs and improve efficiency.

Cost advantages are beginning to narrow

Despite continued offshore expansion, industry consultants believe the long-term cost benefits may gradually weaken.

A few years ago, graduates from technology universities in Indian cities such as Bengaluru could reportedly be hired for salaries significantly below equivalent roles in Australia.

However, competition for skilled engineers has intensified sharply as global technology firms and international banks expand recruitment efforts in India.

Speaking to the publication, Nick Therkelsen, partner at consultancy Bain & Company, said the Indian technology hiring market had become highly competitive due to demand from European, American and global technology companies.

Therkelsen noted that top technology firms were increasingly paying near-US level salaries for highly skilled engineering talent.

The growing competition is gradually narrowing the wage gap that originally made offshore hiring highly attractive for international banks.

AI could reshape offshore hiring strategies

The rise of artificial intelligence is also creating new uncertainty around offshore technology staffing models.

According to Therkelsen, many offshore software engineering roles could eventually face disruption from AI-generated coding systems and automation tools.

He said future software development structures may require fewer workers focused on repetitive engineering tasks and more employees working on higher-level customer and strategic functions.

That could make offshore technology operations more vulnerable to downsizing over time, especially if banks seek additional efficiency gains through AI deployment.

At the same time, Australian banks continue facing pressure to manage costs amid softer lending conditions and tighter margins.

According to Morgan Stanley analyst Richard Wiles, recent interim banking results showed overall margins remained under pressure, though ANZ and Westpac performed better than expected on cost management.

As NAB pushes ahead with expanding its Asian workforce footprint, the broader banking sector is likely to remain under scrutiny over how aggressively it continues shifting skilled jobs offshore while restructuring local operations.