The NSW Government will overhaul its primary ICT services contract processes to make it easier for companies to do business with the government.

The NSW Government ICT Services Scheme will incorporate a two-tier supplier listing split into The Registered Supplier list for low risk contracts valued up to $150,000 and an Advanced Registered Supplier list for high risk contracts valued more than $150,000.

Suppliers can apply for either one or both lists depending on their capability and capacity.

An online application process has also been introduced, replacing previous costly and lengthy panel contracting arrangements.

Minister for Finance and Services, Greg Pearce, said the reform followed extensive consultation between government and the industry to make the most of procurement opportunities.

"These important reforms will introduce a twotier supplier listing that more realistically reflects the risk profile of the required goods and services, with a new short-form contract for low risk goods and services valued at under $150,000," Pearce said. "These new arrangements will ensure NSW government agencies can find and procure the services that best meet their needs, and cut red tape for business."

The scheme will come into effect from March 1.