Lancashire County Council is set to launch a major shared services project in a deal reportedly worth over £1.9bn - and is on the hunt for an outsourcing supplier.

The contract will seek to share IT services across the council’s twelve borough councils, Cumbria County Council and other local bodies over the next ten years.

Services to be covered in the deal include IT consultancy and support, technological strategic review services, project management, system integration, the development of customer relationship management software and front line systems, provision of human resources systems, pension fund administration systems, data management and financial management. The deal will also address networking, provision of hardware and software, helpdesk services, user training, printing, and school IT services and related software development.

“The partnership is intended to deliver medium and long term cost benefits, increased efficiency, sustainable and effective services, and improved performance delivery with the primary aim of ensuring the best possible outcomes for the citizens of Lancashire,” the council said in a statement.

The new initiative was announced when the council issued a contract notice requesting suppliers to tender. The council is seeking up to five vendors, who have until 29 January to request participation in the tendering process.

The council has recently come under intense pressure to cut overheads, needing to save £21.7m next year and between £79m and £142m over the next four years. Spending reductions have been forced from numerous directions including increased pressure on services due to demographic changes, new legislation and uncertainties over continuing government grants.