The £42 million contract is to develop a comprehensive network platform to integrate data, voice and video communication and support a host of front-line applications.
Funding for the programme has been generated by savings from improved technology, management and maintenance. The strategy focuses on combining voice and data networks to give residents, elected members and council employees the same level of service, whether they communicate with the council in person, by phone, by fax or online.
Bailie Alan Stewart, ICT spokesperson for the council, said: "E-government is first and foremost about changing the way the council works, rather than simply being about technology. ICT has the capability to enable the council to deliver high-quality services at best value."
He added that the expertise of companies like Cisco and Thus continued to play a key role in helping the city achieve this vision.
Thus will use Cisco's unified communications system to deliver internet-protocol telephony services to staff and to a multi-lingual contact centre.
Paul Wingate, head of public sector for Cisco Scotland, said: "Cisco is at the centre of a shift in service provision, where local governments are not just speeding up service delivery but are also changing the way they work."
The dual expertise of the two companies has already been tested, involving initiatives including the Young Scot card, which gives young people access to leisure facilities and libraries and a payment facility for school meals.