IT solutions company Technology Services Group (TSG), based in Newcastle, has upgraded its computer systems with help from communications company Executel.

Executel, based in Gateshead, replaced outdated technology at TSG's Edinburgh office as part of two contracts worth £54,000.

The company also installed equipment at TSG's Team Valley office.

Michael O'Sullivan, account manager for Executel, said: "We are steadily strengthening our grip on the North-East telecoms market and have now broken into the Scottish market with TSG.

"This is a major coup for us, which further secures our reputation as a cutting-edge communications provider."

TSG, which was launched in 2003 by Graham Wylie, the co-founder of software company Sage, employs about 140 staff in the North-East and a further 300 in its 14 regional offices, between Basingstoke in the South and Aberdeen in the North.

It provides IT services to more than 9,000 small and medium-sized businesses in the UK and has an annual turnover of more than £39m.

In June it bought PJ Howlett Business Systems, in Preston, Lancashire and last month bought AC Computer Services, of Wigan.