North Tyneside Council has announced plans to outsource all its ICT needs to infrastructure company Balfour Beatty, in a move to reduce costs and secure council jobs.

The outsourcing deal is expected to take over the council’s ‘business package’, which incorporates finance, procurement, revenues and benefits, ICT, customer services and human resources.

As part of the deal, Balfour Beatty has agreed to take on council staff, to allow the council to reduce its head count and reduce costs.

A spokesman for the council told Guardian Government Computing that “the company can use those staff for other projects, and they may be working for other councils, or the health service, for example.”

Due to the council’s recent budget cut of 28 per cent, a targeted saving of £47m is expected to be made over the next four years, to which the outsourcing plan is hoping to contribute.

North Tyneside’s mayor, Mrs Linda Arkley said that the partnership with external providers was the “best solution for the council, its taxpayers, its staff and the borough”.

“The partnership options we have selected are by far the most advantageous for North Tyneside.”

“They will enable the council to invest in services, safeguard employee jobs and deliver further growth and investment for the borough, as well as achieve the stringent efficient targets we have set,” she said.

The council did however consider sharing services with neighbouring councils, but this was ruled out as it would not have delivered the required level of savings needed over the next four years.