The Home Office said that it would save more than £100m over six years by extending contracts with two IT suppliers Atos Origin and Fujitsu.

The contract extension value over the period is about £430m- £330m to Fujitsu and £100m to Atos Origin. The companies will provide IT services to 24,000 users across the Home Office and UK Border Agency under the contract.

The agreements will reshape current services to deliver significant improvements between now and the end of the contracts in 2016 – cutting IT costs by around a quarter, the Home Office said.

The extensions cover the provision of IT services including desktop, applications hosting, networks and supporting infrastructure and services to around 70% of the current Home Office user community.

Helen Kilpatrick, director general of financial and commercial of Home Office, said: “The extended contracts are a great achievement, which will help the Home Office improve the service we provide to the public. By working collaboratively with Atos Origin and Fujitsu from the outset, we have been able to re-engineer the existing contracts in record time.

“The result is a completely new approach to IT service provision in the Home Office, reducing costs by a more than a quarter over the lifetime of the contracts.”

Keith Wilman, UK Chief Executive Officer at Atos Origin, said: “We have worked collaboratively with both the Home Office and Fujitsu to re-define the scope of our contract, and our focus will now continue to be on delivering maximum business benefit across the Home Office.”