Bradford Council is about to take a major step towards improving its computer systems. But it could lead to the loss of 50 jobs over three years.

The Council is seeking two external partners to improve its outdated computer systems. One would be expected to invest millions of pounds in updating the information technology. And the other would bring professional expertise to the management of the authority's £1 billion property and land assets portfolio to bring 'maximum benefits' to Council Tax payers.

The IT contract, which would be similar to one drawn up with Serco last year to deliver education, would probably run for ten years.

But efficiency savings which would be necessary for the Council to pay the terms agreed in the contract could involve the loss of up to 50 jobs over three years. Council managers say this could be achieved through natural wastage. The Council expects the move to have huge benefits for Council Tax payers with all services upgraded and dealt with more efficiently. It was urged to take action on its outdated IT systems in its comprehensive performance assessment by the Audit Commission. The outdated technology in the benefits offices was blamed recently for mistakes resulting in overpayment.

But the executive committee, which authorised the procurement of the partner, was warned by officers that it could also carry financial risk to the authority.

And the Council's biggest union, Unison, has told the authority it is concerned about loss of jobs and the impact on staff.

Councillor Simon Cooke, executive member for regeneration, said: "Bradford Council is committed to delivering modern, high quality value-for-money services to people across the district. Developing innovative partnerships is one of the approaches the Council is taking as part of an improvement programme which assists staff and ensures investment going into key services."

But Liz Devlin, chairman of the Council's Unison branch, said the union was concerned about any job losses and rights of staff transferred through partnerships. And Mike Cassells, shop steward with asset management, said there had been inadequate consultation with unions over the proposals for the partnership. He asked why the Council did not pursue the options of funding bids to outside sources.