Allied Irish Bank (AIB) is continuing its IT outsourcing strategy with Indian service provider Infosys taking over the management and development of its applications.
AIB has outsourced application development and management to Infosys in a contract that will see the firm set up a support centre in Dublin with 200 staff.
The majority of staff in the new support centre will come from the current AIB team but some will come from other customers of Infosys.
Earlier in 2015, AIB signed a five-year IT outsourcing agreement with Indian IT services supplier Wipro to support its transformation into a digital bank.
In January 2015 it was revealed that AIB was planning to outsource IT, with about 450 roles potentially affected.
As part of the agreement, Infosys will also invest $10m in the Irish startup community.
Infosys global head of financial services Mohit Joshi said: "Our investment in the Irish startup community reflects our belief that Ireland is a strong and vibrant nation, home to entrepreneurs who share our vision of technology as a way to drive growth.
"We will leverage our broad experience in financial services and other industries to support the digital transformation journey and strategic growth plans of AIB.”
Recent research suggests banks are increasingly turning to suppliers for IT services. According to figures from accountancy company Nixon Williams, the number of jobs in the financial services sector has declined by 16% since 2009, while the number of staff employed by IT firms has increased by 13.9% – partly because banks are using more outsourced IT.
Financial services companies are using more third-party IT products and services as well as outsourced IT, which has boosted the number of workers in the IT sector, while the workforce in finance has reduced.
Read more about IT outsourcing in finance sector
- Allied Irish Bank (AIB) is planning to outsource IT with about 450 roles potentially affected as suppliers – including Indian provider Wipro – take over services
- Bank of Ireland has outsourced cheque clearing services that will see 130 staff transferred to supplier BankTec
- Jobs in the financial services sector decline by 16% since 2009 while the number of staff employed by IT firms increases by 13.9%