State-owned AIB to outsource 200 more technology jobs
Published 03/07/2015 | 02:30
State-owned AIB plans to outsource a further 200 technology jobs, the latest in a series of cuts by the bailed-out lender.
Around 300 people working in the bank's Application & Development Management (ADM) teams will be affected directly, or indirectly, by the move. Under the latest outsourcing plan 200 of those jobs will be transferred to outside firms Wipro and Infosys, who will take over the functions for the bank.
"AIB this morning briefed staff in its Application Development and Maintenance (ADM) division about plans to outsource a number of services to WIPRO and Infosys. We will now enter into a formal consultation process with employee representatives. There will be no redundancies," a spokeswoman for the bank said yesterday.
Earlier this year 200 IT jobs at AIB were outsourced to Wipro, Integrity and Eircom, as part of an ongoing process that has been running since 2013.
In all, as many as 1,000 technology functions at the bank have been affected by the shifting of functions to third party supplier.
Last night the Finance Union, IBOA, which represents large numbers of staff at AIB, said it was disappointed at the bank's decision to outsource more work from its ADM section.
The union said it regards IT operations as a "core" bank function.
The union said the bank and the Minister for Finance, Michael Noonan, should reconsider the strategic implications of outsourcing core IT activities, particularly in light of Ulster Bank's technology breakdown back in 2013.
The union said its representatives will begin a new round of consultations with employees affected by the latest plans starting today.