Councillors in Edinburgh are set to sign a major IT outsourcing deal in a bid to make £22 million in efficiency savings.

The deal is part of the ongoing modernisation of the city's IT and network infrastructure, which BT's government services division has been leading.

Later this week the council will vote whether to continue the IT outsourcing partnership with the firm until 2016.

Councillor Gordon Mackenzie, convenor of the finance and resources committee, said: "We have the challenging task of modernising and improving services for the people of Edinburgh.

"Continuing our partnership with BT until 2016 will bring more than £22 million of savings over the next eight years, which we can use to deliver the best possible frontline services and help us modernise as a council."

BT has reported that since its partnership with Edinburgh council began, its partnership transformation programme has achieved a score of 88 per cent against 33 agreed critical success measures.

This achievement has exceeded the 75 per cent level required to deem the programme successful.

Earlier this month, Pantaloon Retail hired Indian IT outsourcing firm, Wipro, to manage its IT infrastructure in a £25 million deal.

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