Scottish Borders council awarded the £92m Digital Services contract to global IT and business process services provider CGI.
The 13 year contract will provide the council with state-of-the-art technology to deal with customer services and offer new streamlined services to support its growing client base.
In addition, CGI will provide six telephone exchanges in the Borders offering new high-speed broadband initiatives for schools, businesses and the local community.
The new Centre of Excellence will also provide new employment opportunities for local young people through modern apprenticeships.
David Parker, Scottish Borders council leader said: “This is a landmark deal for the Scottish Borders as we join forces with one of the leading IT companies in the world to offer a once in a generation transformational opportunity for the region.
“For CGI to choose the Scottish Borders to base their second UK Service Centre is a genuinely exciting opportunity. Not only does it mean our existing ICT staff will remain in the Borders, but it will also bring a wide range of benefits and opportunities.”