Support services firm nets BoI deal

BANK OF IRELAND has awarded the British support services company Alfred McAlpine a €116.1 million facilities services contract, which will see the bank outsource its administration, cleaning, building, telephone and post services to the London-based group.

The contract forms part of a wider-reaching cost reduction programme at Bank of Ireland and, on its own, will result in savings of about €30m for the company over the course of the seven-year deal.

While a voluntary redundancy programme will be made available for existing bank staff in the relevant areas, a spokesperson for BoI yesterday said that it expects only a small percentage of workers to sign up for it, with the bank “envisaging the vast majority of workers affected by the move will transfer to McAlpine”.

The move will affect about 230 BoI staff — of which about 140 are employed as cleaning staff.

“The new contract will ensure that the outsourcing arrangement optimises operational costs and services by providing all facilities management support through the setting up of one integrated service across the group.

“It will ensure the delivery of consistent, scaleable and cost-effective solutions and the provision of high quality services,” according to the spokesperson.

The McAlpine group already undertakes facilities management for Halifax Bank of Scotland and National Australia Bank.

The BoI contract will probably come on stream by the end of the summer.

BoI’s Strategic Transformation Programme has already resulted in savings of €35m for the business — ahead of schedule, according to the bank.