Tower Hamlets Council has awarded a seven-year contract to IT firm Agilisys. The move comes as Tower Hamlets aims to achieve savings of £100 million over four years following government budget cuts.

The contract, worth £70 million, hopes to save the council £29 million in ICT cost savings. Agilisys also implement the council’s new finance and HR systems. The IT firm will be based in Tower Hamlets and none of the council’s current IT staff will lose their jobs as they will be transferred to Agilisys for the duration of the contract.

Georgina O'Toole, TechMarketView analyst said: "Previously Agilisys has worked with Unit4 for its Agresso software, for example, at North Somerset. And word on the street is that it's the same situation at Tower Hamlets. Agilisys is quickly becoming one of the most successful players in the sector with revenues from UK local government set to top £100 million in this financial year to 31 March 2012."

Agilisys will start work at the council from May 2012. It beat Capita, HCL, Logica and Northgate in the race for the contract.