Defence company BAE Systems has selected technology services company Logica to provide HR services for its UK employees in a six-year deal.
Logica will design, build and support a new HR service based on Logica's Dynamic HRO framework in addition to Oracle's PeopleSoft Human Capital Management and Oracle E-Business Suite Payroll.
Logica said it will work with BAE to try to cut operational costs by working on organisational effectiveness, employee engagement and performance, service efficiency and workforce optimisation.
Haydn Clulow, HR director at BAE, said: "We recognise that our business needs both agility and flexibility if it is to respond successfully to our changing market landscape."
In November last year, BAE informed its then HR outsourcing provider Xchanging that it did not intend to renew its contract, which was due to expire at the end of 2012. The contract with Xchanging was worth £18m per year.
Financial terms for the Logica contract were not disclosed.
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