Bank of Ireland is planning to outsource its Group Technology Division to Accenture, a global management and technology consulting firm. According to expectations, 200 employees will move to Accenture’s outsourcing branch. The transaction, which was announced last week, will be completed by June.
The Group Technology Division of Bank of Ireland is responsible for the IT-landscape and IT-services towards the business. According to an internal note shared with staff of the bank, leveraging Accenture's capability would "strongly position it to deliver on customer needs and expectations now and into the future". The Irish bank has declined to comment on the value of the contract to Accenture or the cost saving that will be achieved as a result of the outsourced deal.
A spokeswoman for Bank of Ireland said staff would have the option of transferring to Accenture, accepting voluntary severance, or possible redeployment within the group. Staff have until mid-April to make their decision.
Despite the claims made by the Bank of Ireland, the Irish trade union for the sector [Bank Officials Association (IBOA)] reacted skeptically on the deal.
"Outsourcing is becoming an increasing trend in banking. Yet we are not convinced that these initiatives actually save the banks a lot of money"
says Larry Broderick, general secretary of the IBOA, as quoted in the Irish Times. The union is also concerned about the possible impact on working conditions and employment: "Our priority is to ensure that the terms and conditions of our members are protected".