The Health and Safety Executive (HSE) has signed a three year £20 million IT outsourcing contract with Steria, which will replace Logica as a managed IT services supplier.

The contract will see Steria operate HSE's IT based on a consolidated, virtualised ICT infrastructure. Steria will improve the availability, efficiency and flexibility of IT services for HSE staff, said HSE.

The introduction of virtual servers at the HSE will reduce power consumption and associated costs by over 70 percent, Steria promises.

The transfer of services from HSE's previous supplier, Logica, is due to be completed in "mid-2013", the HSE said.

Two years ago Computacenter IT staff working for the HSE ended 11 weeks of industrial action in pursuit of a better pay deal, following a compromise agreement.