Capgemini UK, part of the Capgemini Group, a provider of consulting, technology and outsourcing services, has penned a two-year, £6.3m contract with the Foreign and Commonwealth Office (FCO).

The agreement will see Capgemini UK support the upgrade of FCO’s enterprise resource planning (ERP) system that manages the finance, procurement, projects, HR and payroll functions. The deal is the biggest of its kind under the third iteration G-Cloud framework.

Chris Gravestock, account director FCO, Capgemini, said: "This new agreement will give the FCO a seamless upgrade to the latest software versions and excellent value for money, with the support of a leaner and more flexible team."

The re-tendered contract will run to the end of 2015. The ERP 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, the FCO’s 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."