Rochdale Council has promised to create rather than cut jobs in the borough after signing a £187.5m, 15-year outsourcing deal.
The deal, with service providers Agilisys and Mouchel Parkman, will cover the council's property management, highways and engineering, payroll and IT functions. It will also see the creation of a single contact centre to handle queries on all the council's services.
New systems and processes will be rolled out across the different services by Agilisys and Mouchel Parkman.
Allen Brett, council leader at Rochdale, said: "Mouchel Parkman and Agilisys have put together an excellent bid, which will help to transform Rochdale town centre and generate many new jobs for the borough."
The Rochdale deal follows a £158m outsourcing contract signed last month between Bradford Council and IBM and Serco Solutions.