BT scoops £300m outsourcing deal with Liverpool council

These will be followed by more of the council's processes, including revenues and benefits, human resources and payroll, later in the year.

BT claims this will slash town hall red tape, improve customer services and at the same time safeguard hundreds of jobs.

Liverpool City Council chief executive, David Henshaw, said in a statement: "Employees seconded to the new company will benefit from new skills, personal development and better environments in which to work. They will be free from a great deal of day-to-day administrative burdens that obstruct their work and will enjoy a more streamlined and efficient way of working."

At the time of writing, no details were available about how many staff the deal will affect. A spokeswoman for BT said that no job cuts are expected.

Council leader Mike Storey added that the council hooked up with BT as part of its objective to establish Liverpool as a premier European city and the new company will play a key part in the 'Seaport to E-port' agenda.

He added that the venture brings about major investment that would not have been possible otherwise.

The contract will be delivered by BT Syncordia Solutions, the ebusiness and communications solutions unit within BT Ignite.