Catalyst urges New Zealand to back local tech in procurement

Catalyst has urged the New Zealand Government to prioritise local technology providers in public procurement, as it announces investment to upgrade its own technology infrastructure.

The Wellington-founded open-source technology provider tied its call to new public spending on digital systems for emergency management and health cyber security, arguing that procurement decisions will determine how much of that work stays in New Zealand.

Budget 2026 included funding for modern technology in the emergency management sector and AUD153.6 million to lift cyber security investment over the next four years to better protect patient information. Catalyst argued those programmes should favour domestic expertise and open standards over overseas proprietary systems.

Managing Director and co-founder Don Christie said the issue extends beyond software purchasing to economic resilience and control of critical systems. He argued central government should start with local expertise when commissioning digital infrastructure.

"New Zealand's local technology expertise is world-class and capable of securing our most critical technology systems at home," Christie said.

He said the government's current approach to procurement has steered agencies towards large offshore vendors, leaving less room for local firms to compete. Dependence on proprietary platforms can also leave public bodies tied to one supplier for upgrades, pricing and product direction, he said.

"In an era where digital sovereignty and economic resilience are inseparable, our default Government procurement model should change. We should look to local experts first, and prioritise providers who utilise open-source and open-standards platforms," Christie said.

Procurement debate

The intervention adds to a wider debate over how governments manage the digital systems behind public services and critical national functions. Open-source software makes source code available for use, modification and sharing, while open standards are published rules designed to let different technologies work together.

By contrast, proprietary software is controlled by a single owner and usually requires ongoing licensing fees. Customers may also face switching costs and technical constraints if they later want to move away from that vendor.

Christie said New Zealand risks reinforcing those patterns if new public investment is channelled to a narrow group of overseas suppliers. In his view, procurement reform offers the clearest path to increasing competition in the sector.

"The government is blocking local innovation by locking itself into offshore tech giants. Currently, this over-reliance on foreign proprietary systems lacks competition, meaning our most powerful fix is to reform how we buy technology," Christie said.

Catalyst pointed to overseas examples including the United Kingdom, Denmark and France, arguing those countries have adopted open standards in procurement to support technology innovation. It said New Zealand could take a similar approach to reduce dependence on single-vendor systems.

Open systems

The argument centres on systems used in areas where service continuity and data security are especially sensitive. Catalyst highlighted emergency management platforms and health data systems as examples of public infrastructure where procurement choices can have long-term operational consequences.

Christie said the latest round of government technology renewal creates an opportunity to build local industry depth while reshaping the structure of public digital systems. Open standards should become the default in government procurement, he said.

"New Zealand should look to open source and open standards becoming the default for government procurement technology," Christie said.

Catalyst described itself as a long-standing supplier working on critical infrastructure and software projects, with roots in Wellington and offices in Europe, Australia and Canada. Its latest comments suggest it wants the procurement debate to move beyond cost and immediate delivery to questions of ownership, interoperability and domestic economic impact.

It also argued that public systems closely tied to national crisis response should not be outsourced to a single overseas provider. "These latest technology initiatives, which will be critical to how our country functions during crises, present a vital opportunity. By choosing open standards, the Government can secure our digital infrastructure, build genuine local capability, and ensure public spending directly stimulates the New Zealand technology economy," Christie said.