IT outsourcing is expected to save one council up to GBP 11 million a year, it has been claimed.

According to Wilshire county council, it will save between GBP 9-11 million a year after the initial investment of £8 million is repaid.

Jane Scott, leader of the council, said: "This is the county council taking advantage of the most up-to-date technology to bring greater value for money for the people of Wiltshire.

"It will streamline and simplify our internal routines and contribute to the considerable financial savings the new unitary authority will bring."

She added that the IT outsourcing project will simplify matters such as invoicing, procurement, payroll and human resources.

A new centralised computer system will ensure that all financial and human resource information is stored in one place, she concluded.

Last week, Computerweekly.com reported comments by one IT outsourcing expert who said firms could maximise the gain from outsourcing by discussing their future plans with their provider.

More than half of small businesses (53%) believe that the most important benefit of outsourcing is guaranteed response times for IT support, London based Connect conducted the research in 2007.