The outsourcing is expected to save the state $180 million over several years. Ninety-two Georgia Technology Authority workers will lose their jobs under the plan.
One eight-year, $873 million contract was awarded to IBM and a second five-year $346 million contract went to AT&T. Each was the sole bidder.
Gov. Sonny Perdue said Thursday that the state's existing system information technology system wasn't reliable and that state data was at risk.
An independent assessment of the state's IT system last year uncovererd aging infrastructure, little coordination of spending and problems in disaster recovery.