The New Zealand government plans to centralise technology procurement across the public sector and cut costs by nearly 30%.
Minister for Digitising Government Judith Collins will extend the powers of the chief digital officer, Paul James, to oversee almost all IT purchases, replacing the current fragmented system where agencies manage their own technology independently.
This reform could save approximately $3.9 billion over five years from a projected $13 billion spend by reducing duplication and promoting interoperability. Collins said the goal is to replace isolated systems with a citizen-focused digital public service, similar to models seen in countries like Estonia and Singapore.
A core part of the plan is expanding the Govt.nz app, which will offer services such as driver’s licences, vehicle registrations, tax, and welfare payments in one place. Currently, departments often use incompatible systems, leading to inefficiencies and security problems, such as health boards sharing patient data via insecure emails.
The change marks a major shift from the 1980s practice of agencies controlling their own IT, requiring adoption of standardised technology under the chief digital officer’s leadership. The app will also enable secure identity verification and payments, with a digital driver’s licence expected by year-end.
Collins compared the move to the banking sector’s shift to seamless global digital access.
“It doesn’t matter where you are, anywhere in the world, you can still access your bank. It’s like, why shouldn’t you be able to do that with your information?” she said, highlighting the frustration of repeatedly submitting the same data.
This centralisation aligns with international trends toward efficient, user-centred government services, promising cost savings and a more agile public sector for the digital age.