Gloucester City Council is outsourcing its IT service to Civica in a six-year contract.
The council already had a revenues and benefits deal with the outsourcer it signed in 2011. The new agreement, said the council, will save it £100,000 a year. The value of the deal to Civica has not been disclosed.
The existing revenues, benefits and welfare rights services contract saw Civica create a Centre of Excellence for the council, which has also been used to support 20 other authorities.
Paul James, leader of Gloucester City Council said: “We have been delighted to see what has been accomplished so far [through the previous contract], such as the reduction of our council tax arrears by £1.5 million.
"We look forward to developing our relationship with Civica further as we continue to drive cost savings, sustain employment and improve services for our citizens.”
In 2011, Gloucester City Council also implemented a new ABS budgeting and forecasting system in an effort to improve processes.