Birmingham's remaining children's homes are to be handed over to an outside operator because the council admits they will do a better job.
But the move is set to be opposed by staff unions which say failures are a result of cuts over five years and problems will worsen with private operators.
The Labour cabinet approved the transfer of five homes and a combined total of 107 staff to a provider which will be appointed next year.
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Children's homes have been under the spotlight as part of wider issues and child protection services.
Failed Ofsted inspections last year led to the closure of two homes, Fairfield Children's Home, in and Bournbrook Children's Home, in after children went missing 57 times in three months in 2013.
Cabinet member for children's services Brigid Jones (Lab Selly Oak) said the decision to bring in specialist operators had been taken following consultation and that all staff would be transferred over to the new operator.
She said: "We want to ensure the quality of these homes going forward.
"But in the past the council has tried to be the jack of all trades and has ended up the master of none. Our problems in this respect have been well documented."
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But the Unison and GMB unions representing staff have raised a number of concerns.
A spokesman said: "Sadly, we have seen the erosion of our residential children's homes where 19 homes have been closed for financial reasons since 2008.
"This has led to the vast increase in private homes that provide care for profit.
"Young people in our care, who at one time were supported through independent living programmes, are now experiencing private care homes which only provide a bed and spending money and sadly little else, regardless of their Ofsted rating."
The unions pointed out that attempts to rely more on foster care had faltered because it was not suitable for many youngsters - often teenagers with challenging behaviour, criminal activity, drug use and sexual exploitation issues.
Meanwhile, city council bosses have decided to keep its specialist homes for disabled children in-house.