Public agencies in New Zealand have continued to secure large IT contracts worth hundreds of millions of dollars, even as the government promises to reduce spending on contractors. The Labour Party’s recent commitment to cut contractor and consultant spending by $165 million next year has raised questions about the tension between their pledge and the awarded contracts. These contracts align with the government’s push for agencies to utilize private off-site cloud services instead of managing their own information. While the government has faced criticism from the National Party regarding contractor spending, the specific targets for the proposed $165 million cuts have yet to be determined. However, there are concerns that agencies may rush to secure big IT contracts to meet these targets, potentially impacting domestic contracts.
