Scottish Borders Council said 200 new jobs will be created in the region as part of a £92 million digital services contract it has awarded to global IT company CGI.
The deal will see CGI create a Scottish Information and Communications Technology (ICT) Delivery Centre of Excellence in the Scottish Borders.
The local authority said the 13-year contract is “the most significant inward investment proposal ever for the region with the potential to inject over £100 million into the Borders’ economy.”
The council said the deal “has been enabled by the Borders Railway being operational.”
“It will also mean our 49 existing ICT staff will remain in the Borders and employment opportunities for local young people will be offered through Modern Apprenticeships,” the council said.
CGI will unbundle six telephone exchanges in the Borders which will provide new high-speed broadband initiatives for schools, businesses and the local community.
“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,” said Borders Council leader David Parker.
“For CGI to choose the Scottish Borders to base their second UK Service Centre is a genuinely exciting opportunity.
“We have always maintained our ambition for a growing and prosperous economy here in the Borders, especially on the back of the Borders Railway opening and I am confident this contract is just the start.
“We believe that the Borders Railway, combined with the community benefit proposals from CGI, will all contribute towards making the Scottish Borders a desirable 21st century business location.”
Tim Gregory, UK president of CGI, said: “We are delighted to partner with Scottish Borders Council to enable simpler and more accessible digital services for citizens.
“As part of our commitment to delivering on our plans we will be creating an ICT delivery centre of excellence in the region which will mean up to 200 new, high-value jobs for the area including digital, cyber security and Modern Apprentice roles.
“CGI is committed to working with a diverse range of partners to help bring flexible, cost-effective digital solutions to local and central government across the UK.”