Written answers
Thursday, 10 October 2013
Department of Finance
Banking Sector Issues
Willie Penrose (Longford-Westmeath, Labour)
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62. To ask the Minister for Finance the reason Allied Irish Banks have entered an outsourcing agreement with a company in India, which effectively is outsourcing jobs at a time when we have 13.5% unemployment whilst there are companies in Ireland who could clearly accommodate the outsourced strategy for AIB; if this can be revisited and reviewed to ensure that Irish companies who are capable of carrying out this work are considered for same; and if he will make a statement on the matter. [42964/13]
Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware the Relationship Framework with the Allied Irish Banks provides that the State will not intervene in the day-to-day operations of the bank or their management decisions. This framework is published on the Department of Finance website. I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. I have been informed by AIB that the bank is seeking to deliver a better technology offering for customers as it attempts to return to sustainability over time. The decision to partner with the outsourcing company HCL has been taken as part of the overall strategy of introducing new productivity tools on the most commercial terms. The technical resources and expertise required to provide this service are in short supply in Ireland and AIB is similar to a number of companies in seeking support from an international company with access to scale and resources. AIB remains committed to managing the cost of and maximising value from this arrangement.
In line with AIB's normal practice all service providers’ contracts are reviewed periodically.
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