IBM said on Monday that it will set up a joint venture company that will run services for two counties in South West England, handling areas from computer systems to human resources, procurement and finance.

International Business Machines said it will initially book the deal at about 200 million pounds ($409 million), but altogether it expects the contract with the Somerset County Council and Taunton Deane Borough Council to be worth about 400 million pounds over its 10-year life.

The joint venture company, which will be called South West One, will offer its services to more than 30 other public sector organizations in the region.

It is in talks with a local police force in the area, which would become England's first to receive shared services through a joint venture agreement if it participates. (Reporting by Jim Finkle, editing by Brian Moss)