Edinburgh City Council has signed a £10m deal with BT to transform its human resource service.
The authority will use a new IT system to streamline core processes, including recruitment, health and safety and absence management.
The new system is expected to create £12m of savings by 2016, and will be rolled out to all council departments by December.
‘Savings will be realised because there will not be as many paper forms circulating between offices,' said the council's head of e-government, Andrew Unsworth.