Rochdale Metropolitan Borough Council has signed a £200m, 15-year deal to create a partnership that will manage the council's back-office services and build a 70-seat contact centre.
About 300 council employees will be seconded to the partnership, with IT supplier Agilisys and property management company Mouchel Parkman, on 1 April. The new organisation - the Impact Partnership - will run the council's IT, highways, payroll and property departments.
Council IT director Paul Young said, "The elected members were very keen that the contact centre was in Rochdale. They had two reasons: so that people working in the contact centre had an affinity for the local area, and so that the contact centre would help Rochdale's economic regeneration."
Agilisys has promised to bring a minimum of 1,300 new jobs to the metropolitan borough over the 15-year term of the contract. The jobs will be created by moving the call centres of some of its private sector clients to Rochdale.
Agilisys chief executive Charles Mindenhall said, "We are bringing a number of those private sector jobs and roles to Rochdale. We will be aiming to do work with our clients, such as HBOS, in Rochdale."
The contact centre will account for between £15m and £22m of the £200m total value of the contract. The partnership will also implement a customer relationship management application, which is expected to be Lagan Frontline version 6 and a new payroll system, which is likely to be Midland HR & Payroll Solutions' Trent application.
Part of Impact's £13m annual budget will be put aside as a contingency fund for IT-enabled business transformation projects.
The council said it chose to start a partnership rather than enter an outsourcing arrangement so that it retained the freedom to change its requirements.