Birmingham City Council was set to make a final decision on a £420m, 10-year partnership deal to manage its corporate IT function as Computer Weekly went to press.
Europe's largest local authority announced last December that Capita was the preferred bidder for the contract.
About 450 council IT employees were to be seconded to the partnership under the original plans.
As well as the £420m contract to run the council's IT functions, the partnership was expected to be the first choice for any IT-enabled business transformation projects that the authority starts during the next 10 years.
The partnership is expected to work on projects generating £10m of annual efficiency savings.
Projects to transform the council's procurement, encourage flexible working and increase the time social workers spend delivering care had already been earmarked for the partnership.