Birmingham councillors are set to approve a new structure to deliver its ICT structure, after scrapping its Service Birmingham joint venture with Capita.

The council announced in May that it is expecting to save a net £43m by slimming down the current Capita deal by confining it to core services until 2021.

Development of the council’s digital strategy will now be delivered by a new “ICT & digital future operating model” based on a multi-supplier Service Integration and Management model.

Ian Ward, deputy leader of the council, said: “This deal will see the council gradually take more control of its ICT & digital strategy over the next four years with Capita and the council working together.

“Through these negotiations we have been able to secure the savings we need to protect frontline services and start the ball rolling on the process that will enable us to meet the challenges of the future.”

As well as delivering core services currently provided by Service Birmingham, the new deal with Capita will also work on projects that allow additional savings to be delivered.

But the council admitted that achieving the proposed savings will give rise to investment cost being incurred by the council.

In addition, it said that it has already spend £1.3m of £2m allocated for legal costs in redrawing the relationship with the supplier.

The council has also identified a need to “implement and mandate a more robust and centralised ICT and digital governance framework”, with a view to linking ICT and digital services better.

Other benefits would include improving the identification of business requirements and choosing the right ICT solution, and deploying resources more efficiently.

Additional proposals include introducing a formal framework to manage and report risk, plus new performance measures.

Councillors will vote on the new model next week.