Croydon Council has revealed it expects to make 50% in savings after signing a nine year contract with British outsourcing firm Capita's secure solutions business.
Under the deal, the council will use Capita's desktop solution, unified communications, printing and mobile services as well as local area networks.
As a result, the whole community will have better access to more resources, support for applications and disaster recovery and training services at reduced costs.
The deal also includes support for small and medium enterprises, apprenticeship schemes and environmental services.
John Gladman, head of ICT at Croydon Council, said the contract would reduce costs and improve IT services at a time when government funding is limited.
"We felt that Capita's solution provided a service model and underpinning technical solution that most closely met the Council's requirements, while being affordable and reliable," he explained.
"This will provide us with a modernised IT infrastructure which is key to ensuring that the authority can function effectively and respond quickly to the public to create a modern service for citizens with robust data protection."
Craig Rodgerson, CEO at Capita Justice and secure services, added: "Capita's scale and expertise across local government will deliver Croydon Council a solution which provides for 50% savings on its current contract, while still providing the right environment to support its wider objective for better services for local citizens.
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