Southampton City Council has extended an outsourcing contract with Capita by a further five years.
Capita has been delivering a range of services, including IT, on the council's behalf since October 2007. The extension, worth £124 million, takes the contract to September 2022.
Under the contract, Capita plans to provide businesses and residents in the city with further access to online services through innovation in customer management and IT.
The council expects to save £24 million through the duration of the extended contract.
As well as IT, Capita will deliver customer services, procurement, post room and the administration of HR, payroll, revenues and benefits, occupational health, property and health and safety services.
Andy Parker, deputy chief executive and joint COO of Capita, said: "As people's lives and ways of communicating are swiftly changing, we need to continually re-design council services to better meet the needs of citizens and businesses.”