Public sector investment in digital technologies is expected to grow as governments strive to meet rising expectations for faster, more accessible public services. The effective management of this investment is therefore critical, but many digital projects face delays, cost overruns, or fail to deliver as planned – often due to outdated systems, poor planning, limited understanding of user needs, and weak oversight. Legacy technologies, in particular, can also drain resources and limit flexibility. To ensure value for money, investment must align with the demands of modern digital delivery, backed by strong governance, agile delivery, risk management and strategic partnerships.
Countries therefore need a cohesive and consistent approach to managing public investments in digital government. The OECD Digital Government Investments Framework guides countries across the investment lifecycle from strategic planning to coherent implementation, and comprehensive oversight to ensure that governments deliver the intended outcomes of their digital and ICT investments. By doing so, they can strengthen the governance of digital government to deliver better outcomes for people and businesses.
The Australian Government's Digital and ICT Investment Oversight Framework (IOF) illustrates a comprehensive approach to overseeing digital and ICT investments across the public administration. Through the IOF, the Digital Transformation Agency (DTA) works to ensure that investments are robust, strategically aligned to government objectives, and realise their intended benefits.
The IOF assists the Australian Government in the planning, execution, and benefits realisation of these investments. It aligns with the OECD’s framework and provides agencies with robust processes, policies, and tools to ensure consistent and effective management throughout the investment lifecycle. With the IOF as a supporting governance tool, Australia consistently performs above the OECD average across the metrics on digital government investments measured in the 2023 OECD Digital Government Index.
The IOF is structured around six key functions – referred to as ‘states’ – that cover the entire investment project lifecycle, including the:
Strategic Planning state to identify long-term investment opportunities.
Prioritisation state to score and rank planned proposals.
Contestability state to assess and providing advice to Government on whether proposals are sufficiently robust and aligned with policies and standards.
Assurance state to ensure the proper project governance oversight and monitoring.
Sourcing state to facilitate value-for-money through effective public procurement mechanisms.
Operations state for the systematic monitoring of digital and ICT investments.
By working with agencies at each of these touchpoints in the development and delivery of their projects, the DTA ensures that the Australian Government's digital and ICT investments are strategic, efficient, and aligned with strategic objectives. As the co-ordinating body at the national level for digital government, it oversees the planning, implementation, and management of government digital initiatives, fostering collaboration among agencies for a more cohesive digital transformation. This has been complemented by the DTA’s position within central government, which has embedded the agency more deeply in the operations of central government agencies and their advice to the Government on the investment proposals going to Cabinet for consideration in the budget process.
Furthermore, the DTA has developed robust processes, policies, and tools to support agencies across the investment lifecycle to successfully deliver their digital and ICT projects. Described as the ‘IOF Toolkit’ in this report, these instruments ensure a more consistent implementation of the IOF across government by guiding agencies in establishing robust evaluation and monitoring, aligning with policies and strategic objectives, and more effectively delivering digital and ICT projects.
However, as the DTA considers revising the IOF, there are opportunities to better connect its different ‘states’ to enhance value, strengthen their individual roles, and foster more agile, innovative digital and ICT project delivery. Improved integration could support better data flow and a more consistent user experience across agencies. With the IOF now embedded in public administration, it could also play a larger role in assessing project feasibility, conducting technical analysis, and addressing shared risks such as legacy technologies. Additionally, the government could explore alternative funding models and a GovTech practice to facilitate collaborations between the public, private and other sectors on innovative digital solutions, aligned with the OECD GovTech Policy Framework.
