More than 400 council jobs have been created in Accrington out of a new contract that Lancashire County Council claims will save taxpayers £100 million.
The council has signed a contract for a new partnership with BT creating a jointly owned company called One Connect.
One Connect will take on the delivery of services such as HR and payroll, ICT support and the customer service centre, enabling the county council to save £10 million per year over the next 10 years. It began operating this week.
Councillor Geoff Driver, Lancashire County Council leader, said: "This will be a huge boost for the area and is part of our ongoing plans to save money by making better use of our office accommodation across the county."
He added: "Improving county council services and providing value for money for taxpayers is crucial to everything we do and the strategic partnership is a key part of this.
"By using our combined expertise and technology, we will cut red tape, simplify processes used for carrying out many day-to-day tasks, and provide services far more quickly and efficiently. We will also use our strategic expertise to plan to make further savings in the long-term." Hyndburn council leader elect Miles Parkinson said: "I welcome these jobs.
"These are the sort of jobs that the borough needs in the economy, to feed back not just into retail but also into the housing market.
"It is no secret that in certain parts of the borough we have very good fibre optics and internet access which is beyond other areas and we must take advantage of that."
The telephony operation of the customer service centre, currently based at county hall’s Red Rose hub, has been split between Accrington and Preston with about 75 LCC call centre jobs moving to the Globe Centre from December 2009.
The intention is for customer service operations to eventually move entirely to Accrington.
"Initially 170 staff will move over, but this number will increase to more than 400.
Council bosses say additional potential savings of £30m per year have been identified.
Neil Rogers, from BT Global Services, said: We look forward to delivering excellent service to the people of Lancashire over the next decade.
"This is a key contract for BT and extends our footprint in this crucial market sector."