The Ministry of Defence has awarded a £400 million contract to CSC. The deal will commence over seven years, as CSC will provide payroll, HR and pensions administration services to the Service Personnel and Veterans Agency (SPVA).

The move comes as somewhat of a shock decision, as the MoD move away from previous suppliers, HP. The computing giant had previously held the SPVA contract for 15 years and was shortlisted in partnership Xafinity Paymaster. Capita also made the shortlist.

HP said in a statement: "HP will work to ensure a seamless transition of activities to the successful bidder, ensuring no loss of service to the thousands of people who depend on the service."

According to the original tender document, there is an option to extend the deal, rising to £750 million over 15 years.