New Zealand Unveils Centralised Digital Procurement Plan to Save Billions

The New Zealand Government has announced a major overhaul in the way public sector agencies approach digital investment and procurement. This reform is expected to deliver savings of up to $3.9 billion over the next five years, according to Minister for Digitising Government and the Public Service, Judith Collins.

Centralised Digital Leadership

Under the new model, the Government Chief Digital Officer (GCDO) will assume responsibility for leading digital investment and procurement decisions across most public service agencies and Crown entities. This marks a departure from the fragmented approach where agencies pursued separate, bespoke technology solutions, often resulting in duplicated costs and inefficiencies.

“Taking a centralised approach to digital investment and procurement could save up to 30 percent on the projected $13 billion technology spend across the public sector in the next five years,” Collins said. “That is taxpayer money which can be redirected towards frontline services and better outcomes for New Zealanders.”

A Citizen-Centric, Digital-First Future

The reforms are designed to deliver modern, secure, and citizen-focused services. By adopting proven models from digital leaders such as Estonia, New Zealand aims to create a more efficient public sector that reduces duplication and enhances productivity. Estonia, often cited as a global benchmark in digital governance, has achieved sustained savings and innovation through similar centralisation.

“Our target is a citizen-focused, digital-first public service. These changes will set New Zealand up to emulate the successes of nations that have already proven the benefits of digitisation,” Collins noted.

Key Initiatives: NZ Government App and Digital Identity

As part of the reform, the GCDO will spearhead the development of key digital platforms that serve all agencies. Central among these will be the NZ Government App, designed as a secure one-stop portal for New Zealanders to interact with government services. The app will enable users to:

• Receive official notifications from government agencies.

• Store and manage digital identity documents.

• Choose which agencies or organisations can access their personal data.

• Make payments for government services directly through their phones in the future.

This initiative aims to simplify access, reduce bureaucracy, and empower citizens with control over their digital identities.

Balancing Digital and Traditional Services

While the push towards digital-first services is clear, the government has reassured citizens that traditional service delivery methods will remain available. This ensures inclusivity for individuals who may not have consistent digital access or prefer face-to-face interactions.

“We want to see better, faster services for New Zealanders, but we are equally committed to ensuring that no one is left behind,” Collins emphasised.

Building Safer and More Secure Systems

Cybersecurity and trust are central to the reforms. By consolidating digital procurement, the government aims to implement consistent security standards, reducing vulnerabilities created by isolated and inconsistent systems. The move is expected to not only save money but also provide stronger, safer, and more resilient public services.

“These decisions are another step towards New Zealanders having safer, more secure digital services from the Government,” Collins said.

Looking Ahead

With technology spend forecast at $13 billion over five years, the government’s new centralised approach represents a significant strategic pivot. If successful, it will strengthen digital resilience, save billions in taxpayer funds, and improve public service delivery.

The reform signals that New Zealand is serious about transforming its digital landscape, aligning with international best practices, and ensuring that citizens benefit from streamlined, accessible, and secure services.