The country's largest software company, Tata Consultancy Services (TCS), has signed a 15-year deal with Cardiff Council.
TCS will bring its global technical expertise and private sector commercial know-how for supporting the Council's IT infrastructure in its day-to-day operations and facilitate improved service delivery to citizens, Cardiff Council said in a statement on its website.
The deal size was, however, not disclosed.
"We will bring our experience to stimulate new ways of delivering citizen service excellence. We want this to be an outstanding example of innovative engagement between the public and private sector," TCS Director (Public Sector) Brian Woodford said.
Company sources confirmed the time period of the deal but declined to comment on the deal size.
"It is clear that the public sector needs to adapt to the changing world around us to ensure we are equipped to deal with the effect of the recent global recession and the ongoing squeeze on the funding that is available for spending on public services," Cardiff Council Leader Rodney Berman said.