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What modelling or analysis supports the claim that up to thirty percent savings can be achieved on the projected thirteen billion dollars of public sector technology expenditure over five years?

Answered Question 1193 (2026)
Question published
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Asked by

Reuben Davidson

Member for Christchurch East · Labour Party

Question

  • What modelling or analysis supports the claim that up to thirty percent savings can be achieved on the projected thirteen billion dollars of public sector technology expenditure over five years?

Answered by

Hon Judith Collins

Member for Papakura · National Party · Minister for Digitising Government

Answer

This claim is drawn from the Cabinet paper Driving down the cost of digital in government [CAB-25-MIN-0286 refers]. Government’s five-year digital investment pipeline is projected to be $13 billion dollars. The GCDO’s current digital procurement function has saved approximately $800 million (14 per cent) across a total spend of $5.6 billion between 2017 and FY 2024/25. International evidence suggests that replicating the centralised approaches to digital investment and procurement taken in other jurisdictions could achieve up to 30 percent savings across government’s digital spend. Savings are expected to grow over time as the approach is built out across government’s wider digital spend.