AIB outsourcing announcement bad news for staff and customers

AIBFianna Fáil Spokesperson on Jobs, Enterprise and Innovation Dara Calleary has described the announcement today by AIB that it is outsourcing 170 jobs as a major blow for staff and customers.

Deputy Calleary stated: “This news comes just 24 hours after the Minister for Finance effectively hung the ‘for sale’ sign outside the door at AIB.  When he told us that the bank’s strategy is working he clearly did not have the concerns of IT staff or customers in mind. As well as job losses and changes to pay and benefits there will be justifiable fears over quality of service to the bank’s customers.

“AIB’s intention to outsource its IT function to three separate companies will come as a significant concern to the staff affected. While some employees may be able to transfer to the newly appointed outsource firm it is likely that will come at a cost in terms of conditions of employment. There is likely to be redundancies which in some cases may not be voluntary. AIB should clarify what numbers will be affected as soon as possible. The bank has an obligation to assist these staff members in acquiring any necessary additional training to ensure that they have the best possible chance of securing new employment immediately.

“It is my view that the bank is engaged in outsourcing what should be a core function within its overall activities. Outsourcing has not proven to be a silver bullet for banks, in fact a number of UK based banks have encountered significant quality issues following outsourcing. AIB customers will naturally want to be reassured about the maintenance of service standards in the future. While the companies appointed all have strong track records in their own right we have seen in the past that outsourcing IT from the main management and control functions carry significant risks. The Central Bank needs to be vigilant to ensure that AIB’s computer systems and disaster recovery plans remain fit for purpose.”