Charlotte Jee writes IBM will work to update the system's user interface, integrate the ESR with NHS' mail system, record employee photographs and deliver online payslips.
The company will begin work in the summer of 2015, Jee reports.
IBM will also develop dashboards and alerts for central business intelligence reporting operations, according to the report.
Computerworld reports the contract's period of performance spans five years and nine months and contains two option years.
Jee writes the ESR works to process payroll, pensions, recruitment, finance, e-learning, management reporting, integrated identity management and personnel services.