Bank of Ireland is planning to outsource its group technology and change division to Accenture, a global management consulting and technology services group with a large Dublin base.
The move will affect 200 staff who were told yesterday that the bank wanted to complete the transition by June.
The division is involved in the technology aspects of delivering new services and products to the bank through various platforms. It was heavily involved in Bank of Ireland’s recent transition to the new single European payments area.
'Future capability needs'
In a note to staff the bank said its "future capability needs, coupled with our commitment to deliver on the technology strategy, heightens our requirement to further leverage our existing partners". It said "leveraging Accenture's capability" would "strongly position" it to "deliver on customer needs and expectations now and into the future".
Bank executive Pat Breslin will lead the new Accenture Change Delivery unit that will provide services to the institution, which is 14 per cent State owned.
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.
She declined to comment on the value of the contract to Accenture or the cost saving that Bank of Ireland will achieve.
Accenture would not comment on the outsourcing deal.
Outsourcing is becoming a prominent feature in banking here. Staff at AIB's clearing unit have just agreed to be outsourced to BankTec. Bank of Ireland has outsourced its training division to Accenture, as has rival AIB.
Larry Broderick, general secretary of the Irish Bank Officials Association (IBOA), said: "Outsourcing is becoming an increasing trend in banking.
“We are not convinced that these initiatives actually save the banks a lot of money. Our priority is to ensure that the terms and conditions of our members are protected.”
Mr Broderick said a key issue for the union would be the protection of the pension rights of staff in the group technology and change division given that they were in a defined benefit scheme with Bank of Ireland.
Under EU transfer of undertakings legislation, occupational pension arrangements do not have to be continued by a new owner.
