Business process and technology services provider Xchanging has been awarded a seven-year procurement services contract by defence, security and aerospace firm BAE Systems.

The agreement sees Xchanging provide sourcing and supply base management services for $800m (£485m) of BAE Systems, annual indirect procurement spend across most categories of indirect goods and services including IT and telecommunications, transportation, contract labour, industrial supplies & services, utilities, some professional services and others.

Xchanging will also provide procurement management activities related to reporting, supplier and contract management.

The contract runs through to July 2018 with an option to extend for an additional three years by mutual agreement.

Dennis Bent, vice president strategic sourcing, BAE Systems, says: “Outsourcing indirect procurement to Xchanging enables us to access top procurement talent supported by a proven approach to sourcing that will provide value to our business.”

Scott Dever, managing director for Xchanging Procurement Services in the Americas, says: “We are excited to be adding BAE Systems to our broad customer portfolio and we are proud to be associated with such a high-performance, professional organisation. This agreement opens up tremendous opportunities for growth and establishes Xchanging as a strong provider of procurement services in the Americas.”

Ken Lever, Xchanging chief executive, adds: “We are delighted to extend our relationship with an existing customer of Xchanging. This contract not only enables us to deliver value to BAE Systems, it also acts as a springboard for Xchanging Procurement Services in the fastest growing procurement outsourcing market globally.”