Siemens Business Services won a $219 million contract to track and monitor London's 8,000 buses using satellite navigation technology.
The project is part of Transport for London's five-year investment program in which a total of $18 billion will be spent to deliver improvements to existing services and new projects.
The new systems will provide better real-time information to passengers waiting at 2,000 bus shelters around the city.
Buses run by London's 30 private operating companies will be equipped with the new technology over the next four years.
Siemens VDO Automotive will supply the technology and Siemens Business Services will install and maintain it for 10 years.