Under the£200m contract, from January 2009 Capita will provide a range of services for the council. These include human resources transactional services, such as recruitment services, employment services and staff performance management services.
Capita will also supply ICT, payroll and revenues and benefits services.
All of these services, with the exception of HR, are currently provided by Liberata, which also bid for the contract. The contract covers seven years with the option to extend by three further two-year periods.
Approximately 450 staff who work for Liberata and their sub contractor Northgate on these services will be transferred to Capita.
Around 50 Sheffield staff working in HR and in ICT will also transfer across to Capita. Under the contract, Capita will also work on further projects to transform the way the Council works.
Promised service improvements by Capita include allowing care workers to spend more time working directly with the public because they no longer need to return to the office to update records and request new services.
Council tax payers and benefit claimants will be able to check on their accounts online.
The new technology will allow flexible and mobile working meaning less journeys by staff thereby reducing the authority’s carbon emissions.
Paul Pindar, chief executive of Capita, said: “We will draw on our extensive experience of transforming public services across local government bringing additional capacity and capability to ensure that the Council and the local community really benefit from this partnership.”