170 jobs at AIB are being outsourced to three private companies – Eircom, Integrity and Wipro.
IT staff at AIB were called to meetings in Dublin this morning, where details of the outsourcing were outlined.
170 workers have been told they can change their employer, but no redundancy package is being offered by AIB.
All outsourced jobs will be based in Dublin.
The Minister for Jobs, Richard Bruton, said the outsourcing of positions at AIB is part of the difficult restructuring needed in our banks.
"We know that the domestic banking system is continuing to go through a difficult adjustment - that is part of the transformation that has to be done.
"We have strong growth of employment opportunities. So hopefully, in the AIB case, many of those employees can be accommodated - and that discussion, I understand, is starting."
It comes as the bank prepares to engage in pay talks for 7,500 employees.
Preliminary talks took place last month and a claim is expected to be lodged in February.
Sinn Féin's Pearse Doherty, however, said the move was part of a "a wider worrying trend".
"What we are seeing is a now profitable State bank outsourcing, putting jobs and customer supports at risk," he said.
"The Minister for Finance owns 99% of AIB and has a responsibility to make sure workers at what is a State company are treated fairly. Workers at AIB should not be thrown to the wolves to make AIB look leaner for potential suitors."