Oracle will continue to host the UK Home Office's HR and finance systems in its cloud.
The US firm was awarded the £31.47 million ($39.5 million) contract extension for Oracle's Fusion ERP system from May 2022 to May 2026.
The Home Office began to move its on-premises ERP system to the cloud between 2018 to 2020.
HR, payroll, finance, customer experience, and other systems were officially launched on the cloud in March 2021, covering 35,000 staff.
"The next phase of the program will see the department automate, standardize, and integrate business processes across different functions, with the aim of improving user experience, increasing productivity, and reducing costs," Tola Sargeant, analyst at TechMarketView, said.
The Home Office, the UK Department with the largest IT spend, spends hundreds of millions on its data center and cloud needs. In 2020, it signed a four-year contract extension with Amazon Web Services to host its core services for £100m ($130m). It also used managed IT company Sungard UK, but that firm entered into administration this March.