Hull City Council has awarded its new call centre contract to Serco, in a deal that saves the council £339,000 a year.
The three-year contract, which will start this Autumn, will see existing staff transfer to the new service.
Andy Brown, Hull City Council's city customer services manager, said: 'The tendering process has been very thorough and we are delighted that the new contract will save the council £339,000 a year and some £1m over the next three years.
'This is great news for local tax payers who will continue to benefit from a quality service at a much lower cost. It is also really pleasing that the existing call centre staff will transfer to the new service, keeping their jobs and expertise in Hull.