A review has concluded that government digital services are underperforming and need a reset, citing fragmented investment and widespread duplication across agencies.
The Public Service Commission-commissioned review found spending on digital initiatives lacks coordination, and that the Digital Delivery Agency holds little sway over choices about funding, design or procurement.
Public Service Commissioner Sir Brian Roche made the report public on Thursday. The review found the public system lacks adequate information and coordination, fails to provide agencies with sufficient expert support, and maintains patchy engagement with technology providers that does not support long-term partnerships.
Government estimates potential savings of almost $6 billion over 10 years if IT investment is centralised and agencies share more resources. Between August 2025 and February 2026, Cabinet made multiple decisions aimed at reducing digital costs, establishing the Digital Delivery Agency as part of those efforts. Cabinet's view was that the public service had a history of waste, duplication, and poor delivery on technology projects.
The review recommends a three-part reset: focusing resources on highest-impact projects, repositioning the Delivery Agency as a strategist and expert, and reforming the wider system. Roche said "we need the Government Digital Delivery Agency to be fit for purpose because it has an integral role in the work we are doing to transform the Public Service, and the broader service delivery model."
Government agencies are planning to spend billions on new systems including AI capabilities as access to public services is increasingly delivered through digital and online channels.