Birmingham City Council has extended and expanded its existing contract with outsourcing company Capita in a deal worth about £300m. The original contract, delivered through the organisations’ joint venture of Service Birmingham, has been extended to provide ICT and contact centre services by five years to March 2021.

In addition, Service Birmingham will deliver the council's revenues service for ten years from 1 April 2011.

More than 150 council revenues staff will transfer to Service Birmingham under TUPE regulations.

The extension of the partnership is estimated to generate savings of £55m for the council over the lifetime of the contract.

Councillor Randal Brew, cabinet member for finance at Birmingham City Council, said: “At a time when we are facing an unprecedented financial challenge, we need to focus on driving efficiencies and getting value for money. This deal represents an excellent opportunity to achieve both.

"We have a successful relationship with Capita through Service Birmingham and we are confident that extending and expanding this partnership will mean we are able to continue to modernise services and meet the challenges we are facing.”