Xerox (NYSE: XRX) will make it possible for the state of Texas to create secure cloud-based services for citizens by modernizing and consolidating its data centers. The upgrade will be one of the largest projects of its kind in the country.

Under an $848 million, eight-year contract, Xerox will help the Texas Department of Information Resources (DIR) streamline IT operations of state agencies by refreshing technology and combining operations from 28 separate facilities to two centralized data centers. The transformation will reduce the cost of running multiple data centers, and improve security and disaster recovery capabilities.

“This project is about making the best use of taxpayer dollars,” said Karen Robinson, DIR executive director. “The new data center services project will stabilize services for our state agency customers, improve responses to state agency needs and allow visibility into system costs so that agencies can manage their use of services for increased efficiency.”

Xerox’s partners on the IT consolidation project include a number of Texas firms designated as Historically Underutilized Businesses (HUBs), as well as technology market leaders. By committing to deliver the services in Texas, Xerox and its partners will provide and sustain more than 500 jobs in the state.

Separately, DIR awarded Xerox a six-year, $53 million contract to continue its printing and mailing services that support a number of state agencies. Xerox prints more than 240 million pages annually, including notices, vehicle titles and Workers’ Compensation documents.

“These two contracts amplify our commitment to helping clients simplify their processes through innovation and operational excellence,” said Lynn Blodgett, president, Services Business, Xerox. “As a company with deep roots in Texas and a long history of helping state agencies, this is an opportunity to create a more efficient government.”