It aims to cut current costs by 12% and to reduce impact on the environment.
"Our intention from the outset was to become more efficient and reduce harm to the environment," said Oldham Borough Council leader Richard Knowles. "By working in partnership with Xerox we can make the best use of existing staff while encouraging greater use of new technologies."
The deal includes a digital inplant to handle complex and longer-run jobs including variable data colour.
This will use a DocuColor 2060 colour printer, plus DocuTech 6135 and DocuPrint 92C black-and-white printers.
When extra print capacity is needed the inplant will supported by local Xerox premier partner KwikPrint.
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