The latest reports claim that Capgemini and steel giant, BlueScope Steel have renewed their business process outsourcing (BPO) service contract.

It is believed that Capgemini would still provide its business process outsourcing (BPO) services to the steel giant, BlueScope Steel.

The earlier contract between the two Companies was set to expire in March.

However, as per the renewed contract the services have been extended to December 2016.

As per the deal, Capgemini would manage and provide human resources administration, payroll, accounting and procurement support services to BlueScope’s businesses in Australian and New Zealand.

Confirming the developments, Capgemini CEO, Paul Thorley, said that his Company was responsible for the original move of the outsourcing model in April 2002 for BlueScope. Also the renewal has been granted following an extensive tender process.

Thorley further said that, “It’s a very significant deal. We were put under pressure to find additional savings to continue the relationship and we stepped up”.

He also said that the Global Financial Crisis had ignited a rise in interest for BPO service providers; however he admitted that Australia’s economic pliability was responsible for reducing the potential for outsourcing business.

Enthusiastic about the renewed deal, Karen Lowe, BlueScope Steel's Shared Services VP, said that Capgemini partnership facilitated cost savings ‘during the difficult business conditions of the last two years’ and would continue to contribute in the same direction.