Sandwell council in the West Midlands has named BT as the preferred bidder for a £300m 15-year contract to transform its back-office functions.
If the contract is signed in the next couple of weeks as planned, BT will begin to invest some £50m in new systems and a shared services centre.
BT and its joint bidder Liberata will use the investment to run the back-office functions at a reduced cost over the lifetime of the contract.
Sandwell Metropolitan Borough Council has forecast that the deal will create at least 450 new jobs in the area, although it has not specified whether the new jobs will involve delivering council services or working for BT’s other clients.
The deal will initially concentrate on improving Sandwell’s IT infrastructure, finance, human resources, payroll and customer services functions.
The contract is expected to come into force in April this year.
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