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Cardiff will provide the systems and infrastructure to support the Swansea centre, and Swansea staff will run it.
Swansea cancelled plans to establish a major customer-facing contact centre managed by Capgemini at the beginning of this year, after the promised savings were found to be uncertain.
An auditor's report into the problems of the Capgemini contract said Swansea's original plans had been badly managed, and this after the council forced through the contract after long-running strikes and other industrial actions by staff.
The new centre to be established will go live this autumn, and will use an IT system tried and tested by Cardiff and other local bodies.
Mary Jones, cabinet member for top performance and eGovernment at Swansea Council, and a leading advocate for the axed Capgemini system, said the new system "was affordable, reliable and has proved its worth at Cardiff over the last five years".
It is already being used in partnerships with Blaenau Gwent Council, South Wales Police and Consumer Direct Wales.
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