The Government Procurement Service has awarded a £500 million contract for payroll, HR and finance IT services to Logica, in a bid to centralise procurement.

The four-year framework contract is intended to be used across government, by central government departments, arms lengths bodies, NHS bodies and local authorities.

Marie-Helene Durif, head of sourcing and category management at the Government Procurement Services, said: "The award of this contract is another milestone in the government's strategy to centralise procurement, which will deliver significant and sustainable cost reductions for government."

In addition to the HR systems and payroll services, Logica will be responsible for HR outsourcing, outsourced training and providing integrated financial and accounting systems.

Organisations cited as potential users of the services in the contract notice include the BBC, Royal Mail Group, the Met Office, Northern Ireland Water, Scottish Police and GP practices in Wales.

Logica already provides HR services to more than 80 public sector organisations as part of a previous framework that was signed in 2002.