Govt Unveils Major Overhaul to Streamline and Centralise NZ Digital Services

Under the new approach, government agencies will progressively shift to shared, standardised digital systems instead of operating individual, duplicative technologies.

New Zealand is moving ahead with a significant transformation of its public-sector digital systems, aiming to make government services simpler, faster, and more cost-effective. Digitising Government and Public Service Minister Judith Collins announced that the next phase of the reform focuses on creating coordinated digital groupings of agencies and consolidating their IT platforms.

Under the new approach, government agencies will progressively shift to shared, standardised digital systems instead of operating individual, duplicative technologies. Collins said this structural realignment will strengthen efficiency, improve service delivery, and ensure public money is used more responsibly.

“Logical digital groupings of government agencies will be progressively established and will share common IT platforms, which will reduce duplication and improve efficiency,” she said.

A major financial impact is expected from this centralisation strategy. By unifying digital investment and procurement, the Government estimates potential savings of up to 30 percent of the projected $13 billion in technology spending across the public sector over the next five years—equivalent to $3.9 billion. These savings could be redirected toward frontline public services and citizen-focused innovation.

A key element of the reform is the establishment of a new Government Digital Delivery Agency, which will sit within the Public Service Commission (PSC). On 1 April, the functions of the Government Chief Digital Officer (GCDO) will transfer from the Department of Internal Affairs to the PSC. The new agency will be led by a functional chief executive who will also serve as the GCDO, responsible for setting digital priorities, managing shared platforms, and overseeing implementation across government.

Collins said these structural changes will enable a more coherent, accountable, and future-ready digital ecosystem for New Zealanders.

“We are modernising government services to make them simpler, faster and more cost-effective for New Zealanders,” she said. “These changes represent a significant shift in how the public service operates, ensuring digital investment is coordinated, cost-effective, and focused on delivering services that save time and improve outcomes for New Zealanders.”

She added that smarter IT spending directly supports wider Government goals—restoring fiscal discipline, improving public service performance, lifting productivity, and enabling sustainable economic growth.

The digital transformation agenda is expected to continue evolving, with further steps anticipated as the Government seeks to enhance technological capability and deliver integrated, user-centred online services.