Government procurement agency has extended its outsourced Catalist framework agreement for public sector shared payroll and related human resource (HR) services.

This agreement is a significant expansion of the services provided under the original payroll framework agreement between the HM Treasury and LogicaCMG, originally signed in 2002. That agreement has since been taken over by as the trading arm of the Office of Government Commerce (OGC), which is itself an office of HM Treasury.

In the last five years, the original framework membership of 13 organisations has grown six fold to 70 members, with LogicaCMG now providing payroll services to a third of Central Government employees.

In today’s announcement, the benefits expected from this framework extension were outlined as reduced costs of the payroll function by as much as 30% through the economies of scale offered with a shared-service model; increased efficiency via automation of processes; and the integration of HR and payroll functions through the creation of a single database of employee information and streamlined processes.

The additional reduction on internal administrative management will also OGC staff to focus on more strategic tasks.

Matthew Jones, financial controller said: “Since entering the framework agreement five years ago, LogicaCMG has consistently delivered an outstanding service to public sector organisations and the contract extension is testament to this.

“ enters into framework agreements with suppliers to enable public sector organisations to obtain best value for money whilst saving on average 77 days on procurement cycles.”