David Clark, Solace's director general, said, "We have agreed to form a business partnership with Oracle to exchange people and ideas between the two organisations."
Oracle said the agreement will help the public sector meet the challenge of the Government's 2005 target for electronic service delivery and joined-up government.
Secondment of employees under the partnership is more likely to effect operational staff in local authorities, although Clark confirmed that some chief executives are already involved in non-executive brainstorming with Oracle. "We are trying to mix private sector and public sector people," he said.
Clark believes the agreement, which was signed at last week's Solace conference, could help local authorities work with the private sector for high-profile public private partnerships (PPPs).
"With the move towards PPPs, these partnerships are becoming more important because each party has to understand the other," he said.
There is growing concern in the public sector about the impact of PPPs. Newcastle City Council recently obtained a High Court injunction to prevent a strike by public sector staff opposed to the council's plans to introduce a PPP to IT services.