The Housing Corporation has signed a multi-million pound deal to outsource its computer systems, amid rumours that staff were unhappy with the deal.
The deal, with computer firm Elonex, will see many of the corporation's internal systems – including all of its desktop management systems, email and key business systems – delivered online from the summer. Some of its external services are already provided online.

Assistant chief executive Jackie Green said the deal was part of an 18-month review of IT projects, but declined to reveal how much the deal was worth. She said: "Our new working arrangements will serve as an excellent example of public sector delivery of e-business."

Under the scheme, 12 IT corporation posts will transfer to Elonex. An article in a computer magazine article alleged that some IT staff had walked out over the plans.

But the corporation said the staff in question had merely taken "extended lunch breaks" and the action had now stopped. Green said staff had been fully consulted. She added: "Their terms of employment, including pensions, are all protected."