The Southland Times

High hopes of wider access to $3b IT spend

- Tom Pullar-Strecker

The Government is promising to make it much easier for younger and smaller businesses to win a larger share of the $3 billion it spends on informatio­n technology products and services each year.

Government Digital Services Minister Clare Curran said a new electronic marketplac­e would greatly reduce the barriers for businesses pitching for government work.

The marketplac­e would initially let agencies buy a range of cloud-based services promoted by suppliers, before expanding to include other technology-related goods and services, she said.

About 90 per cent of businesses that had tested the marketplac­e during trials were small and medium-sized firms, she said.

Government procuremen­t has been a bugbear for suppliers in the sector for decades.

The previous Government pursued a policy of forcing agencies to buy IT products and services, including data centre infrastruc­ture and contractor services, from pre-approved panels of suppliers at centrally negotiated rates.

But that was criticised by some for inadverten­tly creating closed shops and, in some cases, locking agencies into high prices.

Graeme Muller, chief executive of industry body NZTech, said it would be good to see the marketplac­e go live.

‘‘It does create what we have been calling for for a while, which is an even playing field,’’ he said.

‘‘While you could see it as an advantage for smaller New Zealand firms, it will also benefit larger firms, which are sick of spending lots of money trying to get onto panels and then not making it and having to wait 10 years.’’

An issue with the panel approach was that the price of cloud-delivered services was falling, so long-term arrangemen­ts could disadvanta­ge government agencies.

‘‘It is a challenge for a government because it likes to reduce risk by defining everything it buys perfectly, but with the pace of technology it hasn’t been an effective model for a while.’’

A lot would come down to the design of the marketplac­e, Muller said.

‘‘But certainly the experience in the UK, which this is closely modelled on, has been very positive. So fingers crossed.’’

 ??  ?? Graeme Muller of NZTech says a level playing field is welcome and will benefit businesses big and small.
Graeme Muller of NZTech says a level playing field is welcome and will benefit businesses big and small.

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