HP has abandoned its plans to offshore work at the Department for Work and Pensions (DWP) to India following a campaign by members of the Public and Commercial Services (PCS) union.
As a result, more than 200 IT jobs at HP sites in Newcastle, Lytham and Sheffield have been saved.
HP provides the core computer systems for pensions and benefit payments to the DWP's customers, the job vacancies and job searches system, Labour Market Systems and the operational support for a range of applications.
"Having considered a range of options DWP and HP have agreed not to move this work offshore," said HP.
Staff working in IT support at the DWP have been carrying out industrial action in response to HP's plans to move jobs from the UK to Bangalore in India since last month. The action consisted of working to rule and refusing to co-operate with the process of exporting the work.
As well as concern over the job losses, PCS said that the offshoring plans had posed risks to data security.
Mark Serwotka, PCS general secretary, said: "This is very good news for our members who have campaigned hard on this and been rewarded with saving their jobs.
"But it also means that the very real concerns we raised about data security have been listened to, and we are pleased that ministers have seen sense."