A CONTROVERSIAL £400million privatisation of IT services at Scotland's biggest council is poised to go ahead after bosses backed the deal.

A report is to go before councillors at Glasgow City Council (GCC) next week recommending a multi-million pound partnership with Canadian experts CGI, with the firm taking control of the seven-year contract next March.

The move had been thrown into doubt amid legal moves by Serco, the current holders of the contract, but council chiefs are confident that they can meet any challenge and say they have expert advice which supports that position.

Any threat of industrial action by the union Unison, who organised a strike last December, has also been averted after it was confirmed that most council IT workers' status will be preserved.

CGI already runs IT services at Edinburgh and Borders councils, and other local authorities could now follow Glasgow's lead and outsource to the Montreal-based firm due to how the contract has been structured.

GCC Chief Executive Annemarie O’ Donnell said that the deal would transform IT services in the city and boost health, education and jobs.

The final decision will be taken by the council's Executive Committee, and will count among the last major decision made by the Labour-run local authority before next month's election.

The report says that a number of community, economic and social benefits would be delivered over the next seven years by CGI, including a "digital revolution" in city classrooms.

It promises that all pupils from P6 onwards will be given their own tablet device and access to world-class facilities amid the "best technological learning environment" in Scotland.

Training would also be given to 700 Glaswegians through software development courses for 100 long-term unemployed people every year, while health services will benefit from support for data analysis.

Ms O’ Donnell said: “We believe we can transform digital services across Glasgow.

“Redesigning our IT provision presents the opportunity to put the service at the heart of securing world-class digital learning in our schools - and at the forefront of breaking down the city’s digital divide.

“We can deliver technology which improves the lives of our vulnerable citizens and supports our schools and new businesses with world-class network infrastructure.

“And we can support skills, jobs and even the health of our most vulnerable citizens.”

Frank McAveety, leader of Glasgow Labour, added: “Glasgow Labour is determined that no child in Glasgow will be left behind in the classroom because of their circumstances at home.

"This is tackling inequality in action. While others like to use warm words when it comes to tackling inequality, Glasgow Labour gets on with the day job of delivering.”

Staff currently seconded from Glasgow City Council to Access, the arms-length organisation currently running IT services, would be able to remain council employees if they choose, and would be seconded to CGI.

Brian Smith, Unison's Glasgow secretary, said: "We have an acceptable deal which protects our members and secures jobs."

A Serco spokesman said: "We remain concerned by Glasgow City Council's decision to negotiate directly with CGI rather than holding a competitive tender process to find the best value solution for taxpayers.

"We continue to seek clarification from the Council on the legal basis for the procurement process it followed and we will continue to review the options available to us."