"Like any council or state government agency, Rockdale City Council is regulated by the Privacy and Personal Information Protection Act which requires councils to take steps to protect the security of personal information they let contractors hold," Johnston said.

"I hope the council is fully aware that if staff at Fuji accidentally destroy or delete data, the council will then be liable. Privacy does not prevent outsourcing of these functions, but leaves the liability with the government agency."

As part of the contract, Fuji Xerox Global Services will provide all print and imaging services on site. Two Fuji Xerox staff will provide print center services including digital print, document finishing and when required, procure print services from third parties as well as DocuCare services to maintain and support multifunction devices.

Dawne Clark, Rockdale City Council business services manager, said the council has already achieved substantial cost savings through imaging services and anticipates significant long-term cost savings from additional services.