Corus, the steel manufacturer, has extended its IT outsourcing deal to manage its mainframe computers in a £26 million deal.

The new five-year outsourcing contracts will run through to 2013, with some of the IT work being offshored to Capgemini's operations in India and Poland, as part of plans to significantly reduce mainframe running costs.

Overall service management will be handled by Capgemini in the UK, with operational management done from its command centre in Krakow, Poland and additional technical support from a Capgemini centre in Mumbai, India.

Under the terms of the new contracts Capgemini will retain responsibility for managing the mainframe computers that support core steel production, supply chain, stockholding, purchasing, sales ordering and invoicing at Corus' main UK manufacturing sites.

Bruno Laquet, CIO at Corus, said in a statement: "The quality and efficiency of our mainframe systems is of key importance to our customers and employees in ensuring that we manufacture and deliver the right products with the right quality at the right time."