Scottish government awards welfare IT contract to Bengaluru firm
The decision to grant a £35.4 million contract to Mphasis has drawn criticism from opposition ministers in Scotland.
The Scottish National Party (SNP) government has awarded a £35.4 million (almost Rs 450 crore) contract to Mphasis, an IT services company based in Bengaluru. According to The Times of India, the firm will manage and maintain the benefits management platform used to deliver welfare payments to approximately two million citizens in Scotland.
Opposition leaders have criticised the move. Scottish Labour social justice spokesman Mark Griffin told the Scottish Mail on Sunday that public contracts should be used to boost local business and the Scottish economy. Shadow secretary of state for Scotland Harriet Cross stated on X that taxpayers' money is being sent abroad to help administer the benefits system.
A spokesperson for Social Security Scotland told The Times of India that contracts are awarded following procurement guidelines which treat bids equally regardless of location. The spokesperson added that investment in technology ensures the system is future proof and adaptable to changing demands.
Government sources told The Times of India that the platform requires specialised expertise in a niche technology area, noting that only a small number of global suppliers have the required scale and experience.
Ashish Devalekar, executive vice-president and head of Europe at Mphasis, said the project aligns with a focus on supporting government organisations in running secure and reliable digital services. He stated the relationship allows the company to support a critical public service platform.