South Tyneside Council has signed a 184-million shared services partnership with BT.
The deal is expected to save the authority in excess of 28 million over ten years, through the creation of a new shared services development centre to more effectively deliver local information communication and technology (ICT) based resources - including more self-services.
The contract will be delivered by a new BT subsidiary business, known as "BT South Tyneside", which it said will bring in at least 1,250 new jobs and provide a catalyst for more.
Councillor Iain Malcolm, South Tyneside's council leader, said: "The ultimate objective of this partnership is to set about the sustainable development of a knowledge economy in the area."
The deal also includes BT investment to set up a UK-wide local government headquarters in a new 51,000 square-foot business centre in the South Shields area. In future, the service provider said it would provide a number of BT services for other regions across the UK.
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