AIB to proceed with outsourcing of more IT operations, despite staff concerns

Issued : 2 July 2015

Finance Union, IBOA, is disappointed with AIB’s announcement that it is to proceed with the outsourcing of work from its Application & Development Management (ADM) teams within its IT operations. The Union had previously urged the Bank’s senior management and its major shareholder, represented by the Minister for Finance, to reconsider the strategic implications of outsourcing core IT activities to external service providers.

The systems operated by AIB’s ADM teams are integral to the management of a range of key areas including bank liquidity, the provision of customer services, payments processing and internet banking as well as ensuring compliance with the bank’s regulatory obligations. According to IBOA, these operations are core activities within the Bank.

“Despite the concerns we raised about the risk of outsourcing and similar developments – especially in light of the recent experiences of other institutions like Ulster Bank and its parent, RBS – the senior management in AIB advised us today that this outsourcing initiative will proceed,” said IBOA General Secretary, Larry Broderick. “Two service providers have been selected: Wipro and Infosys.

“The Union will now enter into talks with the managements of AIB and the two service providers on the implications of this decision for the 300 staff who are affected by this development – including approximately 200 who have been earmarked for transfer. Our aim throughout these negotiations will be to protect the terms and conditions of our members – whether they remain in AIB or transfer to new employers,” said the IBOA leader.

“While some legal protections exist for transferring employees, we always try to ensure that these minimum standards become the foundation for further improvements – rather than the limit of the assurances available to our members.

“We have already established a constructive relationship with Wipro as a result of the transfer of staff from AIB involved in an earlier outsourcing of other IT functions. So we hope that this positive approach will also be evident in the forthcoming negotiations. In preparation for these talks, Union representatives will undertake a new round of consultations with our members in the ADM teams from tomorrow (Friday) onwards.