The shortlist to land the contract had been whittled down to two in May: Paris, France-based Capgemini, and Birmingham, UK-based ITNet Plc. The final deal will be signed in April 2005.

Swansea Council must hope the announcement will bring to an end the long-running dispute that began in 2003, when the council advertised for companies to partner it in its Service@Swansea initiative. The advert made specific reference to outsourcing, leading to employees becoming unhappy with the lack of consultation and the potential threat to their jobs. An all-out indefinite strike began in August 2004 and lasted for two months, leading to the involvement of conciliatory group ACAS.