Cambridgeshire and Northamptonshire County Councils have renewed a shared services contract with Fujitsu, which is expected to save the councils £7m over the next seven years.
Fujitsu was originally appointed four years ago to deliver an ERP shared services platform based on Oracle e-Business Suite, which included financials, procurement and payroll functions.
The new contract will see Fujitsu provide shared application hosting, support, and development services.
Andre Gonzalez De Savage, Northamptonshire councillor, said the contract has saved money and improved office efficiencies. "In the wake of the 2010 Comprehensive Spending Review we believe that this type of framework represents a fantastic opportunity for local authorities. As more partners join, cost savings will increase proportionately for everybody," he added.