Gloucestershire County Council has awarded outsourcer Steria a five-year IT contract - in place of rival outsourcer Capita.
Steria will start its contract on 1 April. The council hopes the deal will "achieve savings in excess of 25 percent over the five year term" over current costs, with Steria's payments being based on a flexible charging model.
Steria said it will "implement a programme of innovation and change", which "will transition the council to a flexible but robust ICT solution" that "will enable them to be responsive to changing future business demands".
Under the contract, Steria will move the council onto a virtualised ICT platform, that it says will offer scalability and flexibility.
The contract is based on a charging model that can flex up or down based on the council’s demand for ICT services.
As part of the deal, all the staff employed by the incumbent ICT supplier, Capita, will transfer to Steria and will continue to provide local support to Gloucestershire County Council.
In addition, Steria has promised to support apprenticeships for local young people, business advisory seminars for local SMEs and school technology projects.
Councillor Ray Theodoulou, cabinet member for finance and change, said: “I’m confident we have in Steria a cost-effective, flexible, modern and reliable ICT provider, with a track record of helping public sector organisations modernise their ways of working.”
In January 2009, Gloucestershire County Council said it planned to achieve savings of £60 million over the next four years, from an overhaul programme with IT outsourcer Capgemini.
Last year, the Cabinet Office confirmed it was outsourcing shared services - including IT, HR and finance - to Steria, in a deal potentially worth £1 billion over 10 years.