By Tiago Carneiro Peixoto and Dragoș-Cristian Vlad
Many countries are pushing to transform the way they procure digital goods and services. In today’s fast-paced world, traditional approaches aren’t holding up — tender processes tend to be slow and complicated and emphasize compliance rather than innovation. This can lead to public institutions that rely on outdated, costly, and incompatible systems that don’t deliver as promised.
Governments need to meet this challenge up-front and head-on through smart procurement. Streamlined, transparent public procurement processes can help countries adopt modern digital tools such as cloud computing, AI-powered services, and secure platforms. This, in turn, can speed up the process of modernizing public services and make them more efficient, cost-effective, and inclusive— in short, smart procurement can help governments better respond to the needs of their citizens.
Modernizing public sector procurement
A number of countries are already taking steps to deliver faster, more efficient, and more equitable digital services. For example, with support from the World Bank, Romania is reshaping the way digital services are procured with the goal of creating a cohesive government platform rather than a collection of isolated agencies. Led by the Authority for Digitalization of Romania (ADR) as the central ICT procurement authority, the country is building a unified digital platform that mandates interoperability, clear technical standards, and rigorous cloud security requirements.
This envisioned “Digital Marketplace” has the potential to transform the way Romanian agencies purchase and scale digital services like cloud computing and software development. The key is agility: by circumventing lengthy tender processes, ADR can avoid acquiring outdated technology, which is crucial given the increasing role of AI in customizing digital services. Smart procurement is helping the government harness AI’s potential while controlling costs, maintaining standards, and adhering to ethical guidelines.
Romania is not alone. The World Bank is providing support to many countries to modernize public procurement. In Bangladesh, a national e-government procurement platform is digitizing tendering and contract management, which has reduced corruption and delays. And, in Morocco, public tenders have been digitized through a national e-procurement system, which has contributed to a reduction in carbon emissions.
Beyond efficiency, smart procurement offers broader benefits. The United Kingdom’s (UK) Crown Commercial Services frameworks yielded savings of £4.9 billion last year, while France’s open-source software policy spurred growth in tech startups and IT sector employment. Research also links effective procurement to improved government digital service delivery, as demonstrated by Canada.
Building a digital ecosystem, not just a marketplace
Romania’s approach focuses on building a domestic digital ecosystem. The digital marketplace will eliminate barriers for small and medium-sized businesses (SMEs), which are often excluded from government contracts due to complex procedures. Simplified contracts, transparent evaluation, and streamlined onboarding will level the business playing field. The UK’s digital marketplace shows that this works— SME spending has been increasing dramatically, exceeding government targets. Social impact is another priority, inspired by the UK’s emphasis on social value in public spending.
Consider the ministry of labour’s need for a new digital service for managing unemployment benefits. Using the digital marketplace, they could quickly browse pre-vetted solutions and vendors, compare pricing, and deploy teams and cloud services within weeks. Standardized contracts and technical requirements would ensure seamless integration with other government systems.
From vision to implementation
Countries have been sharing their experiences in building digital marketplaces, giving the idea of smart procurement global momentum.
“Digitalization for our country must take into account the experience of other countries,” said Dragoș-Cristian Vlad, president of ADR, during a knowledge exchange and workshop hosted by the government of Romania and the World Bank that brought together government agencies, private sector leaders, and international agencies that have successfully implemented similar reforms.
For this approach to succeed, government, academia, and industry need to closely collaborate. The World Bank recommended establishing a “Center of Excellence” to stimulate Romania’s adoption of cloud computing. The concept rests on three pillars:
- Agile governance: establishing a flexible governance framework;
- Digital service standards: creating clear guidelines for providing consistent digital services;
- Financial sustainability: reinvesting savings from digital projects to create a charge-back system.
Aligned with the EU’s Digital Decade 2030, Romania’s digital marketplace provides a model for agile procurement reforms that drive broader digital transformation. By prioritizing interoperability, cost-effectiveness, and ecosystem development, Romania is building a truly modern and citizen-centric digital government. The focus on smart procurement is not just about buying technology— it involves transforming the way the government operates and delivers value to its citizens.
The long-term vision is to create a dynamic digital ecosystem that fosters innovation, supports local businesses, and improves public services for all citizens. The project represents a significant step forward in the country’s digital transformation journey, with the potential to serve as a benchmark for other nations seeking to modernize their own government procurement processes.
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