Boots has signed a £16m, seven-year outsourcing contract with Northgate HR for a new payroll and human resources system.
The system will support Boots' 65,000 employees, with the contract also covering manpower planning and labour scheduling.
These additional two areas will be sub-contracted out by Northgate HR to Torex Retail.
Dave Vallance, Boots' head of HR operations, said, "We had identified a need to upgrade and improve our core HR and payroll systems. We concluded that the most efficient and effective way to do this was via outsourcing."
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Northgate HR will use Resourcelink, its integrated and web-enabled HR system, to provide the backbone to the Boots service. Resourcelinks's self-service product combines payroll and core HR systems into one single database.
The self-service ability will allow Boots employees to carry out some HR and payroll transactions, such as holiday requests, themselves online.
The new product would be phased in said the company.