Axon will replace 30 back office systems, including six HR and 20 finance packages from TfL's constituent bodies with a single integrated SAP system. Axon chief executive officer Mark Hunter said the project "represents one of the largest business transformation programs in the transport sector today".
TfL manages the capital's buses, the Docklands Light Railway (DLR) and Croydon Tramlink. London Underground will become part of TfL this year.
Axon will design and implement a complete integrated business system based on mySAP.com covering the finance, procurement, HR and reporting requirements for 20,000 TfL users.
The system will incorporate SAP's latest Portal, eBusiness and Transport components and the rollout will begin in the first quarter of this year.
"The introduction of the new integrated system will lead to a business change across the Transport for London organisations and that will dramatically improve our efficiencies and benefit all of London's commuters and visitors," said TfL managing director, finance and planning Jay Walder.
Simon Etherington, account manager for service industries SAP UK, said: "This project will set the standard for best practice in integrated business processes within the transport sector. It is also one of the first European implementations of our most advanced product, SAP 4.7"
TfL faces one of its biggest IT challenges yet when congestion charging is introduced to central London next month.