A new contract to provide the Hull City Council's 300300 call centre service is set to save the authority £339,000 a year.
The decision is subject negotiations over transferring KC staff to the new contractor. Unsuccessful bidders can also challenge the award.
Jonathan Prew, Serco's UK public sector managing director, said: "Serco is delighted to have been awarded the contract to partner with Hull City Council to help develop and improve the call centre service.