THE chief executive of Hull telecoms group KC has criticised the city council for awarding a new call centre contract to outsourcing giant Serco.
Kevin Walsh said it was a "poor decision for local people" and described the move as "unbelievable".
KC has provided the 300300 call centre service for the council since it was first launched in 1999.
However, last week, the council's cabinet opted to award a new three-year contract to international services group Serco ahead of a rival tender bid from KC.
Mr Walsh said: "I am still shocked that we have lost the 300300 contact centre contract and I believe it's a poor decision for local people and the community.
"Our bid would have saved the council more than £750,000.
"When you combine this with the fact that the service we provide is already award-winning, the risks attached to changing suppliers are significant and the chosen supplier is a multi-national business with no ties or commitment to the local economy, the decision seems unbelievable."
Mr Walsh claimed the quality of service provided by KC would be hard to match.
The council's own figures show a current 96 per cent satisfaction rate among people having their first contact with the call service.
The rating covers how polite and helpful advisors are when they answer calls.
Mr Walsh said: "We have provided the service since its launch in 1999 and throughout that period we've consistently achieved high levels of customer satisfaction.
"The quality of our service was recognised just last year when we were ranked among the top five public sector call centres in the UK. The team running the service even received an award from the council itself for the role we play in helping to improve the lives of local people.
"When we receive detailed feedback from the council on our bid, we will be reviewing it very carefully to see why we were unsuccessful, despite our strong track record.
"We recognise the financial pressures on the council and the need to achieve more for less.
"Had our proposal been accepted, it would have resulted in contract savings of more than £750,000 for the council and local taxpayers, while retaining the jobs of all those currently employed and with no reduction in the excellent levels of customer service.
"For the sake of the community, I sincerely hope that the new supplier will honour whatever commitments it has made in its proposal."
While 70 KC employees working on the 300300 service are expected to be transferred to Serco, Mr Walsh said the council's decision had still hit them hard.
He said: "Our people, who continue to do a fantastic job in delivering the service despite this news, are understandably shaken by the prospect of moving to a new employer.
"We are doing all we can to support them and keep them up-to-date with what is happening."
KC's existing contract with the council runs until the end of August. The date for the transfer of the service has yet to be agreed.
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