KPMG has signed a five-year, £62m contract to upgrade its technology platform, with the aim of cutting costs and boosting productivity.

BT will provide network telephony services, including audio- and videoconferencing and will manage KPMG's LAN and WAN connections.

The enhanced infrastructure covers the accountancy firm's UK and German arms, but can be extended to other countries.

The deal will smooth future expansion and promote improved customer service, said Bryan Clark, partner at KPMG.

“This is an ambitious outsourcing programme and one that will deliver significant benefits to both our cost base and our effectiveness in serving our clients," he said.

"It will also assist and support our ambitious expansion plans. Having a consistent infrastructure platform and service model will help facilitate the integration of additional KPMG firms joining our newly created European firm.”