Politics

Scotland Awards £35.4 Million Welfare Platform Contract to Bengaluru Firm

By NAOMI CANTON

The Scottish National Party has awarded a £35.4 million contract to Bengaluru‑based Mphasis to manage and maintain Scotland’s benefits management platform, which delivers welfare benefits to about two million citizens. The decision has drawn criticism from opposition ministers. Labour social justice spokesman Mark Griffin said the contract should boost local business and create jobs in Scotland, and that under the SNP “good work has flowed overseas.” Shadow secretary Harriet Cross posted on X that taxpayers’ money is being sent abroad to administer the benefits system. Mphasis executive Ashish Devalekar explained that the project aligns with the company’s focus on secure, reliable, future‑ready digital services for government organisations. A Social Security Scotland spokesperson told TOI that contracts are awarded in line with the Scottish government’s procurement guidelines, which treat bids equally regardless of location and award the contract to the bidder offering the best overall value. The platform requires highly specialised expertise in a niche technology area, with only a small number of suppliers globally able to demonstrate the necessary scale, experience and capability. Sources in the Scottish government told TOI that the platform’s needs justify selecting a supplier with such specialised expertise.