New Government Digital Delivery Agency to cut NZD spending
Tue, 14th Apr 2026
New Zealand will move Government Chief Digital Office functions into a new Government Digital Delivery Agency within the Public Service Commission, as part of a broader push to centralise digital systems and spending across the public sector.
The reorganisation will transfer identified functions from the Department of Internal Affairs to the Public Service Commission. The new agency will bring together system leadership, delivery support and digital capability functions across government. It will operate under a functional chief executive who will also hold the Government Chief Digital Officer role.
Shared systems
The move is part of a wider plan to organise agencies into shared digital structures. Under that approach, agencies would progressively be grouped into what the Government calls logical digital groupings and use common IT platforms instead of maintaining separate systems.
Minister for Digitising Government and the Public Service Judith Collins said the goal was to reduce duplication and improve efficiency in how the state sector buys and runs technology. The Government estimates public sector technology spending will reach NZD $13 billion over the next five years, and says a centralised approach to investment and procurement could reduce that by up to 30 per cent.
On that basis, potential savings would total NZD $3.9 billion. Ministers say that money could be redirected into frontline public services rather than separate technology projects across departments.
Leadership change
The changes also shift a key digital leadership role away from Internal Affairs, which currently houses the Government Chief Digital Officer responsibilities. Moving those functions to the Public Service Commission links digital delivery more closely with the central agency responsible for public service leadership and reform.
Setting out the rationale for the change, Collins said: "Logical digital groupings of government agencies will be progressively established and will share common IT platforms, which will reduce duplication and improve efficiency."
She also tied the reform to budget discipline and broader public sector performance goals.
"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," said Judith Collins, Minister for Digitising Government and the Public Service, New Zealand Government. "That means potential savings of $3.9b, money which can instead be spent on delivering better public services, for the benefit of all New Zealanders."
"Part of this drive for efficiency involves establishing a new government digital agency at the Public Service Commission, with the existing Government Chief Digital Officer functions transitioning from the Department of Internal Affairs to the PSC on 1 April," added Collins. "The new Government Digital Delivery Agency will work under a functional chief executive, someone responsible for a specific area of work, who will hold the GCDO role."
Wider reform
The agency transfer is one part of a broader programme to simplify how New Zealanders access government services online. Ministers have presented it as a way to make digital services easier to use while reducing overlap between agencies that have historically developed separate systems, procurement processes and support arrangements.
Governments have long sought better coordination of public sector technology spending, but delivery has often remained fragmented. Shared platforms can reduce operating costs and make procurement more consistent, although such programmes also require agencies to align standards, processes and governance.
The Government is positioning the new delivery agency as the centre of that coordination effort. Bringing leadership, support and capability functions into one unit would give the Commission a stronger role in setting priorities and overseeing delivery across departments.
Collins described the shift as part of a broader change in how the public service operates.
"We are modernising government services to make them simpler, faster and more cost-effective for New Zealanders," added Collins.
She said the changes were also intended to reshape investment decisions across the state sector.
"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," said Collins.
"A smarter approach to IT spending supports the Government's priorities to get the books back in order, restore fiscal discipline, strengthen the efficiency and performance of the public service, lift productivity, and drive sustainable economic growth," added Collins.