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."
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.