Service Birmingham, the joint venture with Capita that provides services for Birmingham city council, has been asked to abandon plans to offshore IT and other jobs.
A spokesman for Service Birmingham told GGC: "Our client, Birmingham city council, is asking us to revisit contractual commitments around offshoring with a view to discontinuing the initiative.
"Clearly discussions around this issue are commercially confidential and we are working actively with council officials to come to an agreed position."
Service Birmingham had been planning to offshore IT and other back office functions to India. According to the plans, 55 jobs were to have been offshored by the end of the summer, with up to another 45 by the end of the year.