Lancashire County Council and BT have formed a partnership agreement that will deliver millions of pounds of savings for taxpayers.

The contract for a new strategic partnership – which creates a joint venture company called "One Connect" – was signed recently following the first board meeting of the new partnership at County Hall. One Connect will deliver services on behalf of Lancashire County Council from Monday, 16 May.

The strategic partnership will enable the county council to save £10 million per year over the next ten years, with One Connect taking on the delivery of services such as HR and payroll, ICT support and the customer service centre.

The partnership has been created in a way that will allow other public sector organisations including councils, universities, police and fire and rescue services to also choose to join it in future.

Additional potential savings of £30m per year through better buying, quicker delivery of services and improved access to services using the latest technology are among the improvements residents will see through the partnership.

Lancashire County Council and BT have been working closely over recent months to ensure that the transition to One Connect is as smooth as possible. The first benefits of the partnership are already being seen with the introduction of a new "self-service" HR system, 12 months ahead of schedule.

County Councillor Geoff Driver, Leader of Lancashire County Council, said: "Improving county council services and providing value for money for taxpayers is crucial to everything we do and the strategic partnership is a key part of this.

"We have a long track record of delivering excellent services to the people of Lancashire and the strategic partnership will help us build on the good work we've done and deliver even better value for money for Lancashire's taxpayers.

"By using our combined expertise and technology, we will cut red tape, simplify processes used for carrying out many day-to-day tasks, and provide services far more quickly and efficiently. We will also use our strategic expertise to plan to make further savings in the long-term.

"We've been working very closely with BT over the last few months and are looking forward to working with them in this new partnership. Now we have signed up to the partnership we can move forward together to revolutionise the way county council services are delivered."

Neil Rogers, President Government & Health, BT Global Services, said: “We are delighted to have signed a strategic partnership with Lancashire County Council. We are drawing on our extensive knowledge of the local government sector to provide a truly innovative approach. We look forward to delivering excellent service to the people of Lancashire over the next decade. This is a key contract for BT and extends our footprint in this crucial market sector.”