BT Global Services announced a three-year contract extension with the Department for Work and Pensions (DWP) for continued phone and internet service.
The 237 million deal with the Government built on the previous deal signed in December 2005 worth 870 million.
The DWP's contact centres field more than 400,000 calls per day, making it one of the largest contact centre infrastructures in the world. The new contract will increase the existing 22,000 virtual contact centre seats to 30,000 seats.
"Our relationship with BT has already played a major role in modernising the Department's operations, enabling us to become even more customer focused and meet our customers' ever more complex communications needs," said Sir Leigh Lewis, Permanent Secretary for the DWP.
"The extension of our contract with BT will ensure that we are able to further improve our service to our customers, reduce costs and move closer to our objective of meeting Public Sector Network programme requirements," he added in a statement.
BT will continue to maintain existing infrastructures in addition to creating a single network offering utility computing services.
"We are delighted to have been awarded this contract extension with the Department for Work and Pensions," BT chief executive Ian Livingston said. "In the current economic climate, it's vital that UK citizens receive access to the best help and advice on jobs and benefits."
