The Home Office has extended outsourcing contracts with its two major IT suppliers Atos Origin and Fujitsu.

The firms will provide IT services to 24,000 users across the Home Office and UK Border Agency.

The £430m agreements will reshape current services to deliver significant improvements between now and the end of the contracts in 2016 – cutting IT costs by around a quarter, some £100m over six years.

Helen Kilpatrick, Home Office director general, financial and commercial, said: “By working collaboratively with Atos Origin and Fujitsu from the outset, we have been able to re-engineer the existing contracts in record time.”

The contracts cover the provision of IT services including desktop, applications hosting, networks and supporting infrastructure and services to around 70 per cent of the current Home Office user community.