Shop Direct has awarded a new BPO contract to Serco. The ten-year contract will start on 1 July 2012 and has a total estimated value to Serco of approximately £430m.

Under the contract, Serco will assume responsibility for managing customer contact across Shop Direct's brands. The partnership will work together to enhance service levels and efficiency through the investment in the latest technology, such as web chat and mobile digital services, which are designed to seamlessly integrate online and mobile into customer contact management.

Mark Newton-Jones, Group Chief Executive of Shop Direct, said: "The ways in which customers are shopping with us, contacting us and servicing their accounts have changed rapidly, driven by revolutionary advances in digital and interactive technology. We have chosen to work with Serco as they are an acknowledged leader in this field. Serco's expertise, coupled with their investment in technological innovation, will ensure that we have a customer contact programme that is flexible and adaptable for the increasingly online and mobile world that we live in."