The Foreign and Commonwealth Office (FCO) has awarded outsourcer Capgemini UK a two-year £6.3 million contract to upgrade its enterprise resource planning (ERP) system.
The work will focus on areas of the ERP system that deals with finance, procurement, projects, HR and payroll. The deal is said to be the biggest of its kind so far under the third iteration the government's G-Cloud procurement framework.
Capgemini said it was continuing its work with the FCO, with the new agreement giving the FCO a "seamless upgrade to the latest software versions", with the support of a "leaner and more flexible team".
The re-tendered contract will run to the end of 2015. The ERP system will be delivered through the FCO’s new "service integration and management model", as part of new governance structures introduced by the FCO.
The new approach to deploying resources with "agile and cost-effective service support" aims at improving efficiency, and helping the FCO to meet Cabinet Office requirements to achieve greater value for money.
Tim Gardner, FCO corporate services centre director, said: “With the change in approach to service delivery, this new deal with Capgemini will allow us to make significant cost savings, while ensuring systems continue to support a large number of government departments that reside on the overseas platform provided by the FCO.”
Last year, Computacenter signed an outsourcing agreement with the FCO, beating incumbent provider HP to the deal. The initial contract period is for five years and worth an estimated £350 million, with Computacenter supporting the FCO's global desktop infrastructure.