Taunton Deane Council may bring back outsourced staff
About 40 staff may be brought back "in-house" by a council after a review of its contract with an outsourcing partnership.
SouthWest One, set up in 2007, carries out administrative tasks for Taunton Deane Borough Council.
The move away from outsourcing reflects similar changes made by Somerset County Council last year.
The borough council said a consultation will take place with unions and the staff concerned.
The authority said a final decision will be made in November.
Southwest One confirmed it has "concluded discussions" with the council over providing some services following the authority's decision to bring them back "in-house".
There has been no confirmation of which services are affected.