North East Lincolnshire council has selected Capita as its preferred bidder in a £175m, 12-year IT and business services outsourcing deal.

The contract would see the two parties set up a joint venture company with 350 staff seconded from the council to provide business transformation, improved customer services and regeneration.

The partnership will also focus on delivering programmes such as Building Schools for the Future, a scheme to rebuild and refurbish schools with a strong IT component.

Council leader Andrew de Freitas said: "The partnership will make council services more customer-friendly and streamlined, allowing most residents' requests to be dealt with at a single 'one stop shop' point rather than being passed to different departments.

“And new information management systems will create a more cohesive approach, allowing services to be developed around the specific needs of those who live and work in the community.”

Further savings would be realised by a radical shake-up of the council's accommodation and working arrangements, he added.

The contract award is still subject to final negotiations.

Earlier this year, Capita secured a 10-year strategic services partnership contract with Southampton council in a controversial deal that saw the value of the contract almost double during the tendering process to hit £290m.