In December, BTC failed to gain an injunction from the High Court preventing the termination of the partnership.

In an announcement yesterday, the council said that the contract which covered ICT, along with other back office services, has now been officially cancelled.

The statement said: “Following the termination of the contract with BT Cornwall, services have today formally transferred back to the council.

“This has involved approximately 270 employees in HR transactional services, ICT, despatch, Printing and telecare.

"Work has been taking place to ensure that this process takes place as smoothly as possible and all services will be maintained.

“We are continuing to hold discussions with BT Cornwall over the payment of costs and the level of damages we will receive.”

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Councillor Andrew Wallis, portfolio holder for children and young people, said that the damages could run into millions of pounds.

He said: “With this outsourcing journey now finally at an end, it is time to move on, learn lessons, and do not repeat such a project again.”

Shortly before Christmas, a judge ruled that the council was entitled to cancel the contract after BTC failed to meet performance targets, including a promise to create a set level of new jobs.

The judgement said: “Assessed as at 20 July 2015, BTC was in breach of the agreement such that the defendants were entitled in all the circumstances to terminate the agreement forthwith.”

BTC's monthly review reports showed that between November 2014 and April 2015 service in relation to one indicator was below target service level six times, and below the breach trigger five times.