Worcestershire County Council has signed a seven year contract with supplier Liberata to supply human resources, finance services using new technology solutions to local public bodies.
The contract, worth an initial £5.2m, is expected to save more than £2.2m over the liftetime of the agreement, the company said.
It will see services provided to the council, police and education institutions in Worcestershire and West Mercia.
Marc Bayliss, the council’s member for transformation and commissioning, said: “The commissioning of these services meets our aim to create a lower and more transparent cost of service while also ensuring our commitments to schools and other customers can continue to be delivered now and in the future.”
He said that the council would now hold discussions with Liberata in order to transfer 106 staff and services across from 1 February 2016.
The contract covers payroll, HR, finance, payments, and occupational health services.
It also covers technology solution management, maintenance, support and its future transformation.
Under the deal, Liberata will be required to honour current prices until 31 March 2018. After that date schools and academies will be able to purchase services directly from Liberata using the framework agreement.
The firm has also agreed to create posts for 25 apprentices over the seven years of the initial contract.