IG-88 was a fictional character who appears in the movie Star Wars: The Empire Strikes Back, as well as the Star Wars Expanded Universe.
According to the tale of IG-88 in "Tales of the Bounty Hunters," IG-88 was created for Project Phlutdroid, a military contract given to Holowan Mechanicals by the Galactic Empire. Four IG-88 models were built and one IG-72. Somehow, one of the IG-88's activated prematurely, assessed the scientists in the lab as threats, and used its built-in weapons to kill them all within thirty seconds. It then copied its program into the inert IG-88 shells and the IG-72. They agreed to conceal their origin by killing everyone involved in Phlutdroid, earning a "Dismantle on Sight" warrant from the Empire.
The IG units took over a droid manufacturing facility on Mechis III, and reprogrammed the Empire's new Viper probe droids as advance scouts for their own plots, and IG-88B was sent to keep a public face for the group, distracting anyone from Mechis III. As for IG-72, it also became a bounty hunter, but was destroyed.
Having heard of IG-88's exploits, Darth Vader contacted it, and IG-88B responded. Vader had gathered bounty hunters on the Executor to track down the Millennium Falcon and capture its crew alive. IG-88B sliced into the ship's computers and planted tracers on the other hunters' ships. While inside the computer, it learned of Death Star II, and sent that information to the others. IG-88B followed Boba Fett to Cloud City and laid a trap. Fett had laid a trap of his own, disabling IG-88B with ion cannons, and then blew it apart with its own weapons. IG-88B's shell can be seen in The Empire Strikes Back, when Chewbacca is gathering C-3PO's scattered parts.
IG-88C followed Fett to Tattooine to capture Han Solo. Although it could perform much harder manoeuvres in its specially-designed IG-2000 vessel, Fett managed to outfly it and destroy it. IG-88D attacked right after, briefly surprising Fett, but the ship was destroyed as well. IG-88D survived and traveled to Ord Mantell, where Dash Rendar ultimately destroyed him.
IG-88A copied its program into the second Death Star's primary computer core, and intended to take control of the station and use it to rule the galaxy. No one was aware of IG-88A's presence, except Palpatine. Just as it was about to perform its intended task, the Rebel Alliance destroyed it.
The animated Clone Wars series gives a glimpse at the ancestry of IG-88, as well as the meaning of 'IG'. The Muunilinst-based InterGalactic Banking Clan, often abbreviated as IBC but more commonly called the IG Banking Clan, was one of the charter organizations that founded the Confederacy of Independent Systems. Whereas the Trade Federation and Techno Union used Geonosian-built battle droids for their armies, the IG Banking Clan used a series of tall, lanky droids known as IG Lancers, who rode speeder bikes and carried lances like medieval jousters. These IG droids bore a passing resemblance to the native Muuns who ran the bank clan, who looked like tall and grotesquely thin humans with abnormally tall heads. Led by Durge in Chapters 4, 8 and 9, until they were defeated by Obi-Wan Kenobi and his Clonetrooper enforcements. The connection between the IG Banking Clan and Hallowan Laboratories is unclear; it's entirely possible that after the rise of the Galactic Empire, the IG Clan no longer exists and the IG-88 droids were given that designation either as a tribute or because they could not think of another name for them.