Dimension Data is the preferred supplier of shared ICT infrastructure to councils in the Wellington region.
The chief executives of the Greater Wellington Regional Council, Porirua City Council, Upper Hutt City Council, Wellington City Council and Wellington Water opted for Dimension Data subject to contract negotiations.
A final decision is due in mid-August.
Earlier this month, a Local Government Commission proposal to amalgamate various Wellington councils was scrapped due to a lack of public support.
"A shared services approach will improve our current systems and enable us to have greater ICT capability across the Wellington region, with systems that have enhanced reliability and resilience," said Wellington City Council acting chief executive and CFO Andy Matthews.
.The services will support around 2600 staff across the five organisations.
The councils and Wellington Water will work with Dimension Data to finalise an implementation business case to detail the benefits and costs for each participating organisation and a time-frame for transition.
Implementation is expected to take about 18 months.