Contracts at the centre of an electronic tagging scandal have been handed to four new firms including outsourcing giant Capita.
They will take over from Serco and G4S, which were mired in controversy over an overcharging scandal which among other errors saw the Government billed for the monitoring of dead offenders.
The Ministry of Justice named Capita alongside London-based technology firm Buddi, satellite and software firm Astrium and O2 owner Telefonica as preferred bidders for the electronic offender-monitoring contract.
The Government said new satellite technology will mean criminals can be tracked beyond their homes and into communities when it starts next July.
London-based Capita, which has other big contracts including setting up the UK's new network of smart electricity and gas meters, said the deal to monitor criminals and run support services will be worth £400 million over its initial six-year term.
Under the existing arrangement, responsibility for electronic monitoring of offenders is split between Serco and G4S.
When details of the overcharging scandal emerged in July, Serco immediately quit the competition for the new tagging contract, while G4S withdrew from the tender process earlier this month.
The Government did not say how much the whole contract is worth, but said it will mean "better supervision of offenders at a lower cost".
It added splitting it between four companies will mean they can be better held to account. Buddi, Astrium and Telefonica are expected to be handed three-year contracts.
Justice secretary Chris Grayling said: "We are now going to be able to track offenders wherever they go, 24 hours a day.
"And we will be able to stop them going to places we don't want them going to go - like paedophiles hanging around outside schools. All of this is going to be done with world-class British technology designed and built by the kind of business we want government to work with more."
Currently around 15,000 offenders are tagged at any one time in the UK, and are monitored from base stations in their homes, which have a limited range.
Capita said it expects the new technology will mean more offenders can be tagged, and could be extended into the probation service, NHS and social care.
About 1,000 staff based at monitoring centres in Manchester and Norwich will transfer across to Capita in January.
Capita boss Paul Pindar said it will be the largest and most advanced tagging system in the world.
He said: "This integrated service will play a key role in providing better alternatives to short prison sentences, allowing more tailored curfew and location monitoring, and better management of subjects under electronic monitoring orders."
Buddi, backed by hedge fund Odey Asset Management, will make the ankle tags in Nottingham. It already makes tags used by 30 police forces, and also makes devices to monitor people with dementia.
Its founder Sara Murray said being named preferred bidder was a "significant win" and showed the value of its technology.
Spain's Telefonica runs the O2 mobile network in the UK, and Astrium is owned by European defence giant EADS.
The Government expects to sign the contracts later this year.
The tagging scandal followed an audit by accountancy firm PricewaterhouseCoopers, launched in May, which revealed overcharging began at least as far back as the start of the current contracts in 2005 - but could have dated as far back as the previous contracts let in 1999.
Auditors discovered that the firms had charged the Government for tagging offenders who were back in prison, had had their tags removed, had left the country or had never been tagged in the first place but had been returned to court.
Mr Grayling told G4S and Serco that an independent forensic audit must now be conducted to look at, among other areas, internal email trails between executives to establish what happened. While Serco has agreed to take part, G4S has refused.