Lincolnshire County Council has agreed to outsource services including IT to Serco in five-year deal worth £70m and will embark on a 12-month transition from its existing supplier next month.
The council expects to save £14m over the five-year period and has an option to extend by two more years.
The business process and contact centre services include finance, HR, ICT and customer service operations.
Serco, which replaces business services firm Mouchel, will begin working with the council next month and expects to have fully transitioned the services from the incumbent by April next year.
Councillor Martin Hill, Leader of Lincolnshire County Council, said the council expects more savings and job creation from the new outsourcing agreement.
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“We are pleased to have signed this important contract with Serco and look forward to them delivering a better deal with more savings, as well as creating additional local employment opportunities.”
Serco said it will introduce new technology and ways of working to increase savings.
“However, the most important aspect is a smooth transition with no drop in service for citizens and council staff,” said Serco.