Qantas is set to outsource its IT infrastructure to Telstra in a huge deal expected to be finalised in November.
According to Qantas insiders, the airline will outsource its entire infrastructure 'lock, stock and barrel' including servers, workstations and people.
"We have been advised to prepare for the move in November, " one source told CW.
Qantas spokesman Des Sullivan confirmed the deal but did not disclose dollar figures or staffing details.
"The contract negotiations are still under way so I am not in a position to provide details," he said.
Sullivan did say Telstra has been selected to manage the airline's computer desktop and LAN environment worldwide but did not provide a time period, adding that it "wouldn't be for three minutes".
He said it would be a managed service agreement covering 16,000 desktop computers and laptops, incorporating associated LAN infrastructure and network software.
Qantas already has an alliance with Telstra as part of its e-commerce strategy forming a new online business division, Qantas Ventures, earlier this year.
The Qantas and Telstra cobranded Internet service has proven a success despite the airline being forced to cull 20 IT staff in March as a result of increased competition from no-frills carriers.
In recent times Telstra has been actively pursuing outsourcing via its wholly owned subsidiary Advantra which manages the telco's desktop services, billed as one of Australia's largest contracts.