Harwich et al. outline that ‘central commissioners may be well-placed to construct standardised services – leveraging economies of scale and institutional knowledge to design services. This… also avoids the ‘postcode lottery’ of local commissioners designing services that vary wildly and achieve different outcomes for users'.
A paper from the New Zealand Treasury outlines that centralised information, knowledge and perspectives can, in some circumstances, mean ‘centralised decision-making can enable better, more timely and more appropriate decision-making…. Through the use of the information available at the centre (regarding government objectives, high-level direction, foreign policy, the availability of resources etc.), centralisation may permit a greater level of responsiveness to government objectives. It also means that decisions requiring such information (e.g. an understanding of the needs of the system overall, or of different organisation) may be better taken at the centre’.
The same paper also sets out that centralisation may allow for better risk management, leverage economies of scale and scope, and assist with coordination and consistency of policy and regulation.