Public service broadcaster Channel 4 has signed a five year deal with Logica to outsource human resources and payroll operations.

As part of the deal, Logica will provide the service on Oracle Human Capital Management (HCM) software, the system already used by the channel, and will automate processes. Operations managed under the agreement include Channel 4’s joiners and leavers, and administration of records for holidays and sickness.

The service went live in April, as part of an ongoing plan at the channel to cut costs. The public service broadcaster, which receives a free spectrum but has to gain all its revenue from advertising, has been faced with a funding shortfall as those revenues plummet.

Today it said it would cut up to £75 million of programming costs, as it looked for an alternative business model to ensure its long-term survival.

Gemma Dowson, senior IT project manager at Channel 4 said the new deal would help the company operate more cost-effectively. Under the deal, she said, the channel would “improve our processes and achieve greater efficiencies”.

Long standing CIO of Channel 4 Ian Dobb recently stood down from the role to set up a new consultancy.