Australia Capability Centres Market Size, Share and Outlook - Growth Analysis Report and Forecast Trends (2026-2035)

Market Overview

The Australia capability centres market is a talent-led business in which enterprises place engineering, data and operations teams in a handful of cities and measure success by speed of delivery, retention and access to universities. Most centres are owned by the parent, which keeps intellectual property and control close.

Three forces shape the outlook: a national artificial intelligence strategy that rewards local capability, state governments that compete for headquarters and engineering roles, and a rebalancing between onshore centres and large offshore operations in India that is now a public and industrial relations issue.

In November 2025, Qantas announced an Adelaide innovation centre planned to employ about 420 technology staff. In February 2026, ITC Infotech opened an Asia-Pacific headquarters in Melbourne, and in July 2026 the Australian and Indian prime ministers reaffirmed their commitment to a broader economic agreement.

Key Market Trends and Insights

• State-backed expansion: Qantas said on 18 November 2025 that its Adelaide innovation centre will employ about 420 technology specialists over three years, supported by a commercial agreement with the South Australian Government.
• Foreign headquarters arrivals: ITC Infotech opened its Asia-Pacific headquarters and a digital engineering hub in Melbourne in February 2026 and plans to hire about 150 people over three years.
• Onshore versus offshore tension: In July 2026 the Finance Sector Union said Commonwealth Bank planned 176 technology job cuts, while its Indian subsidiary had grown to about 7,000 staff by mid-2025.
• Restructuring pressure: Telstra reported in August 2026 that 1,200 roles had been removed through restructuring, showing how cost discipline reshapes where large enterprises locate capability.

Australia Capability Centres Market Size and Forecast

Growth is expected to stay well above wider technology employment as enterprises consolidate scattered teams into purpose-built centres and add artificial intelligence and data work. Technology and engineering hubs remain the largest centre type, while research and innovation centres advance fastest. Data, analytics and artificial intelligence leads by function, and transport, retail and consumer organisations expand quickest by industry. New South Wales is the largest region, with South Australia growing fastest from a smaller base. Skills supply, trade and mobility settings, and public attitudes to offshoring will decide which locations capture the next decade of capability investment.

Key Takeaways: Australia Capability Centres Market

Capability Spend Compounds Quickly

Operating value is on course to rise by about 146% across the decade, from AUD 5.80 billion in 2025 to AUD 14.24 billion in 2035 at a 9.4% CAGR. In-house product, data and artificial intelligence teams drive most of the increase.

Innovation and Data Work Lead

Research and innovation centres grow at an estimated 11.4% CAGR and data, analytics and artificial intelligence functions at an estimated 12.1% CAGR through 2035. Enterprises are moving from cost-led support towards product, research and analytics teams close to universities.

Location Strategy Becomes Political

Governments are courting regional headquarters and engineering teams, while unions and the public question offshoring. Organisations that show local hiring, university links and clear role definitions will be better placed as expectations rise.

• Qantas centre in Adelaide targets about 420 technology roles
• ITC Infotech plans about 150 hires in Melbourne
• Commonwealth Bank India staffing reached about 7,000 by mid-2025

Australia Capability Centres Market Report Summary

Key Insight

Digital talent shortages, state incentives and artificial intelligence ambitions support steady centre growth, while restructuring and offshoring debates restrain hiring. Technology hubs lead; innovation centres gain ground.

Key Trends in the Australia Capability Centres Market

The Australia capability centres market is being reshaped by trade diplomacy with India, an artificial intelligence workforce shift, a national strategy for the technology sector and bank restructuring.

July 2026 - Leaders Reaffirm the India Economic Cooperation Agreement

• On 9 July 2026, during a visit to Melbourne for the annual summit, the Australian and Indian prime ministers reaffirmed their commitment to finalising a Comprehensive Economic Cooperation Agreement.
• Australia is seeking services liberalisation, while India is pressing for mobility arrangements for workers.
• The outcome will influence how easily groups can move engineers and managers between Indian and Australian centres.

March 2026 - Atlassian Cuts Jobs as It Shifts Towards Artificial Intelligence

• On 12 March 2026 Atlassian announced about 1,600 job cuts, roughly 10% of its global workforce, tied to its artificial intelligence strategy.
• News agency reports said about 30% of its Australian staff were affected.
• The move shows that engineering centres are being reorganised around artificial intelligence skills rather than simple headcount growth.

December 2025 - Government Releases the National AI Plan

• On 2 December 2025 the federal government unveiled its National AI Plan, aimed at building a local artificial intelligence ecosystem.
• Coverage cited AUD 26 billion of data centre investment expected by 2030, supporting demand for local engineering and operations teams.
• A new AI Safety Institute was announced the week before the plan to track emerging technologies.

September 2025 - ANZ Announces a Large Restructure

• On 9 September 2025 ANZ said about 3,500 employees would leave the group by September 2026.
• About 1,000 managed services contractors were also affected as the bank ended or reviewed third-party engagements.
• The bank expected a restructuring charge of about AUD 560 million, which signals pressure on support and technology cost bases.

Key Insight

Trade diplomacy, artificial intelligence strategy and bank restructuring pull the market in different directions. Governments want local engineering teams, but cost discipline pushes enterprises to rethink where work sits.

Recent Market Developments in the Australia Capability Centres Market

Recent developments, presented from the most recent, show the Australia capability centres market moving through restructuring, offshoring disputes, foreign arrivals and state-backed centre launches.

August 2026 - Telstra Reports Results After Restructuring

• On 13 August 2026 Telstra reported net profit after tax of AUD 2.4 billion, up 2.7%, alongside a new buyback of up to AUD 1 billion.
• Market commentary said 1,200 roles were cut through an enterprise restructure, a divestment and consumer division reductions.
• In February 2026 Telstra also removed 209 roles from its artificial intelligence and data joint venture, with some work moving to a partner hub in India.

July 2026 - Union Disputes Commonwealth Bank Technology Cuts

• On 10 July 2026 Information Age reported that Commonwealth Bank planned to cut 176 technology and engineering jobs, according to the Finance Sector Union.
• The union said at least 37 roles were advertised through CBA India in the preceding month, and the bank denied any link to the Australian changes.
• Australian staffing stayed near 37,000, while the Indian subsidiary reached about 7,000 by mid-2025.

February 2026 - ITC Infotech Opens Its Asia-Pacific Headquarters in Melbourne

• On 16 February 2026 ITC Infotech opened a digital and artificial intelligence engineering hub in Melbourne that doubles as its Asia-Pacific headquarters.
• The company plans to hire about 150 people over three years and expects three to five customers in the first year.
• Victoria's Minister for Economic Growth and Jobs, Danny Pearson, opened the hub, which links to an agricultural technology hub with Victorian universities.

November 2025 - Qantas Announces an Innovation Centre in Adelaide

• On 18 November 2025 Qantas announced a purpose-built Adelaide centre for about 420 technology roles, including software engineers and data and artificial intelligence specialists.
• On 31 March 2026 the South Australian Government said an initial team of 12 was working in temporary premises and the centre was due to open in mid-2026.
• Qantas is partnering with Adelaide University on graduate pathways and funding research at its Australian Institute for Machine Learning.

Key Insight

Recent events show foreign groups and state-backed local centres opening while large employers restructure and unions challenge offshoring. Location choices are being scrutinised as closely as cost.

Australia Capability Centres Industry Segmentation

The Expert Market Research’s report on the Australia Capability Centres Market offers a detailed analysis of the market based on the following segments.

Market Breakup by Centre Type

• Foreign-Parent Global Capability Centres
• Shared Services and Operations Centres
• Technology and Engineering Hubs
• Research and Innovation Centres
• Others

Foreign-Parent Global Capability Centres include regional headquarters such as ITC Infotech's Melbourne hub, opened on 16 February 2026 with plans for about 150 hires. Shared Services and Operations Centres are under cost pressure, with ANZ announcing on 9 September 2025 that about 3,500 employees would leave by September 2026. Technology and Engineering Hubs are the largest segment, led by in-house teams such as the Qantas Adelaide centre announced on 18 November 2025. Research and Innovation Centres grow fastest at an estimated 11.4% CAGR, supported by Qantas funding at the Australian Institute for Machine Learning and the agricultural technology hub linked to Victorian universities.

Market Breakup by Function

• Information Technology and Engineering
• Finance, Human Resources and Procurement
• Data, Analytics and Artificial Intelligence
• Customer and Operations Support
• Others

Information Technology and Engineering is the largest function, as Commonwealth Bank's planned cut of 176 technology roles reported on 10 July 2026 shows how much work sits in engineering teams. Finance, Human Resources and Procurement tasks are consolidated into shared platforms, with ANZ ending about 1,000 managed services contracts after its September 2025 announcement. Data, Analytics and Artificial Intelligence grows fastest at an estimated 12.1% CAGR, shaped by the National AI Plan of 2 December 2025 and Atlassian's March 2026 shift towards artificial intelligence. Customer and Operations Support is the slowest-growing function.

Market Breakup by Industry Vertical

• Banking, Financial Services and Insurance
• Technology, Media and Telecommunications
• Transport, Retail and Consumer Goods
• Healthcare and Life Sciences
• Others

Banking, Financial Services and Insurance lead revenue through large in-house teams at Commonwealth Bank and ANZ, with the bank restructure of September 2025 and union dispute of July 2026 showing active reshaping. Technology, Media and Telecommunications follow, with Telstra reporting 1,200 role reductions in August 2026. Transport, Retail and Consumer Goods grow fastest at an estimated 10.8% CAGR, helped by the Qantas Adelaide centre and ITC Infotech's focus on retail and consumer goods clients. Healthcare and Life Sciences expand from a smaller base through research-linked teams. Others covers resources, energy and government.

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• South Australia
• Western Australia
• Others

New South Wales dominates through Sydney's concentration of bank, telecommunications and software headquarters, growing at an estimated 8.9% CAGR through 2035. Victoria grows at 9.6%, helped by the ITC Infotech arrival in February 2026 and Telstra's Melbourne base. Queensland grows at 9.7% on population inflow and state incentives for technology teams. South Australia is the fastest-growing region at an estimated 11.8%, led by the Qantas centre announced in November 2025. Western Australia grows at 9.2% on resources technology demand. Others covers Tasmania, the Australian Capital Territory and the Northern Territory at 8.7%, where public sector and defence-linked centres dominate.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Competitive Landscape in the Australia Capability Centres Market

Competition is between enterprises building their own centres, foreign groups arriving with regional headquarters, and offshore operations in India that absorb routine work. Barriers include digital talent supply, state incentives, university links and the sensitivity of data and regulatory obligations.

Qantas

Qantas, headquartered in Sydney, operates Australia's largest airline group and is building a technology product capability in-house. On 18 November 2025 it announced an Adelaide innovation centre for about 420 technology roles. On 31 March 2026 the South Australian Government said an initial team of 12 was working in temporary premises, with the centre due to open in mid-2026.

ITC Infotech

ITC Infotech, a technology services company owned by ITC Limited, is headquartered in Bengaluru and established an Asia-Pacific headquarters in Melbourne. The Melbourne digital and artificial intelligence engineering hub opened on 16 February 2026, with plans to hire about 150 people over three years and a focus on consumer goods, retail, agriculture and manufacturing.

Commonwealth Bank of Australia

Commonwealth Bank of Australia, headquartered in Sydney, runs the country's largest bank technology organisation, supported by a subsidiary in India. On 10 July 2026 Information Age reported a planned cut of 176 technology and engineering roles, which the bank said was separate from its India hiring. Its Indian subsidiary had grown to about 7,000 staff by mid-2025.

Telstra

Telstra, headquartered in Melbourne, is Australia's largest telecommunications company and operates large network, data and software teams. On 11 February 2026 reports said it removed 209 roles from its artificial intelligence and data joint venture. On 13 August 2026 it reported net profit after tax of AUD 2.4 billion and 1,200 role reductions across the business.

Other players operating in the Australia capability centres market include Australia and New Zealand Banking Group, Atlassian, Canva, Optus, and Westpac Banking Corporation, alongside universities, state government agencies, technology vendors and global groups with regional engineering teams across Australia.

Key Insight

Competition rests on talent supply, state incentives, university links and cost discipline rather than wages alone. Large enterprises build in-house while foreign groups arrive with regional hubs.