A historic £290m deal that could change the face of Southampton City Council forever has been signed.

More than 650 council workers will wave goodbye to the public sector as jobs and key services fall into the hands of a private firm.

Despite demonstrations and strikes by unions, who predict the move will end in tears, civic leaders have finally signed a ten-year contract that will put business outsourcing company Capita in charge of the council's customer services, IT, human resources, property, tax and benefits departments.

It ends a three-year process that has cost millions of pounds in consultants' fees.

The council says the deal promises to bring "investment and modernisation" to those services handed over to Capita, starting with a revamp of the council's customer services Gateway at the Civic Centre in October.

However UNISON branch secretary Mike Tucker warned one fifth of similar contracts had failed, landing councils with increased costs.

He feared the deal would open the way for further service transfers and that staff would start to leave.

From October 1 council workers will move to Capita with protected pension rights.

Work will then begin with long term plans to relocate to an all-in-one contact and business centre.