West Lindsey District Council has signed a new deal and bought its own recruitment agency.
The council says the purchase of Surestaff signals a new era for the authority as it pushes ahead with its commercial agenda.
WLDC is exploring new ways to counteract cuts in government grants to make sure it can keep delivering services residents need.
Leader Coun Jeff Summers said: “This is a major step forward for the council and it is a decision we are thrilled with. Surestaff is a well-known and well respected company which has been trading locally for ten years. The council has been a key customer for years, as Surestaff has supplied agency staff, using local people to deliver services. It means we can continue to deliver best value services to council tax payers as well as investing in local business.”