Hartlepool Council has signed an outsourcing agreement with Northgate Public Services, which it hopes will save the council £1m a year by operating more efficient services.
Financial terms were not disclosed.
The council said that the deal will also create 235 jobs in the area, which could increase to 300, and make Northgate one of the town's biggest employers.
The latest deal will build on a relationship between Hartlepool Council and Northgate that started in 2001. There were questions in 2012 over whether the council should continue to outsource the services, but the council has stuck by its technology partner.
Under the latest deal, Northgate will spend £2m on modernising the council's ICT, including refreshing the desktop and server infrastructure.
As part of the seven-year agreement, which has a three-year extension option, Northgate will establish a new regional business centre in the town, which will be called Northgate House.
In addition, Northgate has already set up a new academy in conjunction with Hartlepool College of Further Education. It has guaranteed 35 modern apprentices over the term of their contract for those wanting to work in the IT sector.
"The agreement with Northgate Public Services represents fantastic value for the people of Hartlepool," said councillor Christopher Akers-Belcher, the leader of Hartlepool Council.
"Not only does it secure hundreds of jobs for Hartlepool and the scope to create many more, but it also delivers significant savings for the council at a time when we are facing unprecedented cuts in government funding and immense pressures on council services," he added.
Northgate claims that it will plough £2.9m into the local economy in the contract period, and that the council will save a total of £7.63m over seven years.
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