Defence contractor BAE Systems has signed a five year IT services renewal deal with US outsourcer CSC, worth up to $800 million (£514 million).

The renewal extends a 17-year existing agreement due to expire in April, and covers a large range of IT management services for the company, one of the UK's largest defence suppliers.

The 10-year initial deal, when signed in 1994, was one of the UK's largest outsourcing contracts with a single supplier. However, the next renewal term was shorter, for seven years, before this five year term.

Service desk, collaborative services, end user computing, mainframe, physical and virtual servers, storage and networking, service request fulfilment, project services, and application maintenance and support, are all covered by the agreement.

CSC will support BAE Systems in over 100 locations including the UK, Saudi Arabia and Sweden.

Dean McCumiskey, BAE Systems chief information officer, insisted the agreement would provide "value for money" in a changing defence environment.