Transforming Public procurement

Efficient, digitally enabled procurement should be a priority for Governments

The digital transformation of public procurement is a crucial step towards achieving efficiency, transparency, and strategic policymaking. Many governments, including Ireland, have embarked on a journey to modernise procurement processes through digital platforms and data-driven decision-making. The shift from traditional, paper-based procurement methods in the Government of Ireland to a fully integrated digital system shows a pathway to reduce administrative burden, improve supplier engagement, and enhance competition.

This article unpacks Ireland’s efforts to digitise its public procurement system, analysing its strategic roadmap, progress, and challenges. While Ireland has no doubt made significant strides in digital procurement, this article also notes key challenges that can be considered by other nations considering procurement reforms. This includes governance, interoperability, emerging technologies, and helpful best practices.

The Government of Ireland approach to procurement

Ireland has laid a strong foundation for digital procurement through the establishment of an e-procurement platform, facilitating online tendering and contract management. However, challenges remain around data integration, automation, and user experience.

Key issues in the current system include:

• Limited integration of procurement data across government entities.

• The need for enhanced automation in pre and post-tendering processes.

• Insufficient use of artificial intelligence (AI) and machine learning for predictive procurement insights.

To address these issues, Ireland has set out a digital procurement strategy focused on standardisation, interoperability, and real-time data access: 'Strategic objectives for digital procurement transformation'.

A successful digital procurement strategy must align with national economic goals and public sector digital initiatives. The key objectives of Ireland’s strategy hence include:

1. Streamlining procurement processes – Introducing digital tools that simplify tendering, bid evaluation, and contract management.

2. Enhancing data-driven decision-making – Leveraging analytics and AI to improve procurement efficiency and identify risks.

3. Increasing transparency and accountability – Ensuring procurement data is accessible to oversight bodies and the public.

4. Supporting small and medium enterprises (SMEs) – Reducing barriers to entry for smaller suppliers through improved digital access.

5. Future-proofing procurement technology – Ensuring digital tools remain adaptable to evolving market needs and technological advancements.

Lessons for other nations re-thinking digital procurement

Ireland’s digital procurement transformation offers valuable insights, and key lessons can be drawn for other countries embarking on similar reform:

• Prioritise end-to-end digital integration: Procurement transformation should encompass the entire lifecycle, from market research to contract completion, rather than focusing solely on the tendering phase.

• Adopt user-centric design principles: Engaging both procurement officials and suppliers in the design of digital tools ensures usability and accessibility.

• Invest in capacity building: Training programmes and digital literacy initiatives for procurement professionals can accelerate adoption.

• Ensure strong governance structures: A well-defined governance model facilitates coordination across multiple government agencies.

• Leverage international best practices: Drawing on successful models, such as Korean Government or Lithuanian Government.

Developing a roadmap for implementation The transition to a fully digital procurement ecosystem requires a phased approach. The proposed roadmap includes:

• Short-term goals (1-2 years): Enhancing e-procurement platforms, establishing interoperability frameworks, and piloting AI-driven procurement tools.

• Medium-term goals (3-4 years): Expanding digital contract management capabilities and increasing automation in bid evaluation.

• Long-term goals (5+ years): Achieving full procurement cycle digitalisation, integrating procurement data with national financial systems, and adopting emerging technologies.

Recommendations

1. Develop a centralised data governance framework – Establish clear policies on data collection, sharing, and security to enhance decision-making capabilities.

2. Improve interoperability – Ensure procurement systems can communicate seamlessly with broader government IT infrastructure.

3. Invest in emerging technologies – Explore AI, blockchain, and robotic process automation to optimise procurement workflows.

4. Enhance supplier engagement – Provide digital tools that simplify the bidding process and reduce compliance burdens for businesses.

5. Monitor and evaluate implementation – Conduct regular reviews to assess progress and refine strategies based on evolving needs.

   
   

References

OECD (2025), "The Way Forward for Digital Public Procurement in Ireland"

https://www.oecd.org/en/publications/the-way-forward-for-digital-public-procurement-in-ireland_4691afda-en.html

https://www.oecd.org/en/publications/the-digital-transformation-of-public-procurement-in-ireland_87912457-en.html

https://pps.go.kr/eng/content.do?key=00777

https://www.oecd.org/en/publications/public-procurement-in-lithuania_aa1b196c-en.html