The UK Ministry of Defence (MOD) has awarded two new IT and communications supply contracts that are expected to bring savings of more than £1bn over the next decade.

Awarded to the ATLAS Consortium, the first £933m contract covers the supply of New Style of IT (NSoIT) to the majority of defence users in offices, headquarters and deployed bases by September 2016.

Atlas Consortium is a collaborative team led by HP and includes CGI, Fujitsu and Airbus Defence and Space, and the contract is a renegotiation of the original extension of the defence information infrastructure contract.

"The new contracts will enhance our fighting capability and make us more efficient in our work."

Worth in excess of £550m, the second contract requires Fujitsu to provide the MOD’s core global connectivity services for the next five years.

UK Defence Secretary Michael Fallon said: "We must keep pace with those who pose a threat to UK security, whether overt or cyber-based.

"The new contracts will enhance our fighting capability and make us more efficient in our work.

"Alongside this enhanced capability, we have managed to secure huge savings of £1bn over ten years. All of this money will be reinvested back into defence, ultimately helping keep Britain safe."

The MOD will soon award of a contract for voice, video and mobile phone elements that will complement the other capabilities being delivered and allow the UK military and civilian users to exploit them to their maximum potential.

The latest contracts are expected to transform the delivery of information and communication technology across military by providing a new IT system fully exploiting the power of cloud computing, along with Microsoft Office 365 software, to securely deliver greater agility and mobility to soldiers regardless of their location.

The savings generated by the contracts would be reinvested directly into defence capability, helping to bring new equipment and programmes into fruition, which will ultimately ensure the safety of the country.

The NSoIT project was established to renegotiate the continuation of MOD’s secure IT systems, bringing in huge savings from the original contract whilst also delivering improved and new capability.

The Global Connectivity project was established to ensure best continuation of ICT services after the defence fixed telecommunications service contract ends in July 2016.