The software, provided by consultancy Towers Watson, will provide HR technology services designed to help National Grid manage talent and compensation planning more effectively.
The deal will see implementation start immediately with the roll-out of performance management and workforce planning. Subsequent stages of the programme, from February 2013, will include talent management, compensation planning and learning.
Helen Jenks, project director for National Grid, said: "This programme will form part of National Grid's commitment to building a single integrated technology platform for all major HR processes in order to support its drive for high performance."