The City of Gothenburg in Sweden has signed an application development and management contract worth up to £16.4m with WM-data, part of the LogicaCMG Group.
The deal includes management, development and support of all IT systems for the local government of Gothenburg. As part of the contract, WM-data will take on almost 70 employees from the City of Gothenburg in January 2008.
The five year contract also covers a blanket agreement for additional development services.
Magnus Petzäll, CIO of the City of Gothenburg, said, "Through the outsourcing of the development and management of our IT we will be able to get more IT for our money.
"This will enable us to focus more on the governance of our IT projects, acting as a professional buyer. The staff takeover by WM-data will provide our employees with new development opportunities."