AIB says no redundancies will result from outsourcing plan

AIB has said no redundancies will result from its plans to outsource a number of services within its application development and maintenance division.

The bank this morning briefed staff in the 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.

Finance union IBOA said it was disappointed with the bank’s decision to proceed with the outsourcing of work.

The union said it had previously urged the bank’s senior management to reconsider the strategic implications of outsourcing core IT activities to external service providers.

"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," IBOA general secretary Larry Broderick said.