It will take over payroll duties from September 2001 after winning the tender put out by Cambridge Education Associates, the private company now running Islington's schools. There are about 300 staff on the payroll.
A CEA spokeswoman said the company was confident ITNET would provide a good service to Islington schools after carefully examining the education payroll services. 'ITNET currently provides payroll services to a number of local education authorities and administers over a million payslips per year,'
This comes despite question marks over ITNET's abilities to properly administer benefit claims. Last week Islington LBC signed a renegotiated contract for ITNET to continue running its housing benefits service for the next two years. The council has promised to pay the company a further£4m if it dramatically improved its service.
ITNET has also won a£3.8m contract with Worcestershire CC to replace its ageing range of finance, treasury and purchasing applications.
The company's applications service provider, ITNET Business Direct, will supply the council with SAP e-business software. The pay-per-user deal is initially designed for five years and 800 users.
Worcestershire opted for ITNET Business Direct and SAP because it wanted an easy to install and integrated system with the minimum lead time.
Mike Weaver, Worcestershire CC's finance director, said: 'With SAP, all staff can be experts. They can get exactly the information they need, exactly when they need it.'