Serco has beaten Agilisys in contract to run IT, finance and people management services for Lincolnshire County Council. The company will replace the current supplier Mouchel as well as take over functions currently run in-house.
The council said the contract would save more than £14m over five years.
As strategic partner, Serco will be responsible for "a wide range of customer-facing and back-office functions, including finance, HR and ICT", as well as customer services operations, which are currently delivered in-house.
Serco will start work on transforming services from next month in preparation for the transition in April 2015. The contract also includes an agreement to add supplementary services as well as an option to extend for two further two-year periods.
Councillor Martin Hill, leader of Lincolnshire county council, said: "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."
Jonathan Prew, managing director of Serco¹s Public Sector BPO business, said: "We¹re very excited about this partnership and the benefits we believe it will deliver to the council and local communities across Lincolnshire.
"By introducing new technology and ways of working, we will help improve services and drive efficiencies."