A DEAL worth £4.7million has been signed between Kent County Council and Cap Gemini Ernst and Young (CGEY) for new computer and IT technology.

As a result, the jobs of several hundred employees in the county council's administration and payroll departments will not be privatised but kept in-house.

KCC was forced to abandon plans for the large-scale privatisation last year when talks with Hyder Business Services collapsed.

The deal means that CGEY will now work alongside KCC to implement new IT systems.

Union leaders at County Hall, who had opposed the original plans to privatise the jobs, welcomed the move. They said any redundancies which resulted from the decision would be voluntary.

"This deal will keep these jobs in-house. KCC has found a partner which is willing to work to KCC's demands. We are looking at a phased introduction which may lead to a small number of job losses but they will be achieved by natural wastage," said KCC branch secretary David Buss.

Cllr Kevin Lynes, cabinet member for resources said: "Our confidence in CGEY's ability to work with us to deliver this system within the timescale was the single most important factor in the selection of our implementation partner."