A major IT services contract worth £290 million has been struck between Southampton City Council and services giant, Capita.

The announcement said the 10-year contract would cover the provision IT-based functions covering HR, payroll, property management, benefits and procurement.

A statement issued on behalf of Southampton and Capita said: "Final negotiations are currently in progress with the decision to proceed due to be made by councillors in July, and the contract expected to commence on the 1 October 2007."