AIB moves 100 outsourced IT roles back inhouse

AIB has decided to move 100 outsourced information technology (IT) roles back inhouse, joining a growing number of large companies globally that are choosing to shift from a decade-long trend of shifting functions to low-cost centres overseas.

It is understood that some 50 roles will remain with the Indian company, Wipro, to which AIB outsourced its information technology operations (ITO) in 2015.

“Following a review, AIB will transfer some IT services and people inhouse from a third-party provider,” a spokesman for the company said. “These changes support the ongoing enhancement and development of our technological infrastructure.”

The move comes days after Eir chief executive Carolan Lennon said the phone company planned to bring "hundreds" of customer-facing jobs back inhouse. The Irish Times reported last month that Eir was considering the future of its contact with Indian call centre provider, HCL Technologies, over a slew of issues surrounding poor customer service. HCL employs close to 1,000 staff in Ireland working on the Eir contract.

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In July last year, AIB abandoned plans to offshore additional IT functions to Wipro. The AIB spokesman said on Friday that the company “continues to partner with external providers to deliver aspects of its technology services”.

Dermot Ryan, general secretary of the Financial Services Union (FSU), said the union welcomed the "major reversal of policy by AIB".

“The fact that, after just three years, AIB is bringing core functions back inhouse points to serious flaws in the outsourcing agenda,” Mr Ryan said. “FSU believes that all retail banks should be required to maintain core banking functions inhouse. This provides staff with certainty and it also provides confidence to customers.

“Outsourcing is not the panacea that many in the sector claimed in recent years.”