Does the govt have the skills, scale and experience that multinationals have?
Why try to reinvest the wheel for an international scale problem locally when multinationals are doing this for multiple countries.
Does Govt currently have the same ability/capability as multinationals in every domain? No.
But that isnβt a natural limitation. Itβs the result of decades of deliberate outsourcing and capability erosion. And using that erosion as the justification to outsource even more just locks the problem in permanently. As Iβve been arguing in the other thread, capability and capacity can be rebuilt through policy and investment.
The question isnβt whether Govt should replace multinationals. Itβs whether Govt should retain enough in house capability to be an intelligent client, owner, and manager of our critical systems.
Multinationals are very good at delivering products at scale. They are not accountable for long term national resilience, data sovereignty, continuity of service, or adapting systems to local law, language, and institutions. That responsibility sits with Govt.
When Govt outsources everything, it doesnβt stay efficient, it becomes dependent. The skills base dies, institutional memory disappears, and costs rise because the buyer no longer understands what itβs buying. Thatβs how you end up locked into third parties, unable to adapt systems, and paying premiums for what should be routine supplier interactions.
Look at IRD. The current system is far better than the grossly outdated DOS based system it replaced, but we are now reliant on multiple external providers for maintenance and upgrades, at very high ongoing cost and with real dependency risks. Thatβs the trade off of hollowing out in house capability.
Do we want to be a serious country with core public capability, or are we comfortable with a hollowed out public service and unhealthy dependencies on multinationals, hoping theyβll look after our national interests.
Treating Govt capability as βreinventing the wheelβ is the same mistake as treating infrastructure maintenance as wasteful. It looks cheaper right up until it fails, and then you discover you no longer know how to fix it.