BOI targets annual reduction in costs of 120m

Bank of Ireland has announced further steps in its strategic transformation programme which is targeting an annual reduction in costs of 120m to be achieved over the next four years.

Accenture has been appointed as the future supplier of some of the groups training and purchasing services. Accenture has a proven track record of delivering quality and cost effective services in training and purchasing across many industries globally. It is expected that the services will be implemented within a number of months. The seven-year agreement with Accenture will result in savings of over 20m per annum and will also deliver long-term scaleable efficiencies as the organization grows.

The HR structure will be implemented over the coming months and will transform and streamline the provision of HR services to the business.

The strategic transformation programme was announced in March of this year with the objective of creating a competitive, lower-cost operating model for Bank of Ireland Group.

The bank will work closely with its employees and Accenture over the coming months to ensure a smooth transition of these services. In all approximately 180 employees are impacted by this agreement. They will either be retained within the training and purchasing areas, transfer to Accenture, be redeployed within Bank of Ireland or have an option for voluntary redundancy.

Brian Goggin, chief executive of Bank of Ireland Group, says: The agreement with Accenture for the supply of training and purchasing services is a further significant step in our strategy to transform Bank of Ireland Group. It ensures that we source these services from a quality supplier, with proven global expertise and at the most efficient cost for the Group.

Implementation of the arrangements will add to the progress already made on the strategic transformation programme. At its interim results announcement on November 24, Bank of Ireland expressed confidence in achieving the first year savings target of 30m. 10m in savings had been achieved in the six months to end September and 18m had been secured by the end of November.

There has been a reduction in the number of employees of over 400 to date under the Programme. The early retirement programme for those not impacted by the transformation process has been completed and a voluntary severance scheme for some of the impacted areas has been launched.

On the customer service and growth aspects of the strategic transformation programme, Bank of Ireland is adding 500 staff in frontline areas in Retail Financial Services Ireland as part of the customer programme Changing for You of which 250 have been recruited so far. The group has also recruited almost 200 skilled, experienced bankers, mainly in corporate banking and in business banking in the UK.