Swedish engineering multinational and major NBN contractor Ericsson is sending work on a broadband project offshore to India.
Ericsson sent work on the broadband project offshore to China for about one month last year.
According to the Sydney Morning Herald, the move comes after intense scrutiny of Chinese company Huawei.
The Chinese telecom giant was banned from building or supplying equipment to the national network because of security concerns.
The Ericsson work being sent offshore to India concerns integration work on the fixed-wireless part of the network while the work sent to China concerned radiofrequency design, the report said.
A well-placed Ericsson source said that the work was previously being done in Australia. NBN Co said it was aware of the offshoring.
In one Ericsson document, the Swedish multinational forecast that 29 workers in India would be working on the NBN by December, saving it about five million dollars.
The Ericsson source said the Swedish firm was attempting to step up offshoring, recently bringing more than 15 Indian workers to Australia to learn about design on the NBN's fixed-wireless network, the report added.