Southampton City Council has signed a £290m outsourcing deal with supplier Capita.

The contract covers the provision of customer services, IT, property and the administration of human resources, payroll, revenues and benefits, and procurement under a 10-year 'strategic partnership'.

The bid has taken almost two and a half years to reach the final stage.

'We look forward to working with the council to ensure that the local community truly benefits from this partnership,' said Paul Pindar, chief executive of Capita.

'Our extensive experience of transforming public services combined with the council employees’ expert knowledge of the city will provide a solid platform to deliver enhanced services. Our role in supporting local government continues to grow strongly.'

The value of the deal has almost doubled from the £150m that Southampton was originally expecting to pay.

Final negotiations are currently in progress with the decision to proceed due to be made by Councillors in July, with the contract expected to commence on 1 October 2007.

Citizens and businesses will benefit from the development of a contact centre and a ‘one-stop shop’, which will become the first point of contact for all council services.

Approximately 600 council employees will transfer to Capita under transfer of undertakings and protection of employment (TUPE) legislation and will support the delivery of these key services as part of the strategic partnership.