The government investment in ITAccording to the consulting firm Gartner, will rise in 2023 to 589,800 million of dollars. It is a figure that represents an increase of 7.6% year-on-year from 7.6%. In 2023, government organizations will maintain their commitments to research in digital programs. This year they will also ensure that their digital projects withstand the impact of the missions.
There are more and more government institutions setting at least one digital metric directly related to results associated with their public purpose or mission. And by 2026, Gartner projects that around 75% of governments will measure success in digital transformation by estimating the long-term impact of their mission.
In 2023, the largest government spending on IT will continue to be on software. Investments in application modernization will rise, supported by a greater offer of solutions based on the “as a service” model · The use of low-code application platforms is also increasing, and will accelerate legacy software modernization efforts.
Government spending on IT services will not decline in 2023. In addition, to continue modernizing and renewing critical IT infrastructure and applications, some government organizations will adopt a multi-sourced staffing strategy. To do this, they will optimize the use of internal IT talent, and invest in employee experience tools, with which they will have more resources and advance innovation. They will also partner with expert IT service providers to reduce the time it takes to complete an operation.
Throughout this year, government organizations will continue to invest in initiatives that improve access to digital services, as citizens increasingly demand experiences equivalent to those of customers of an online establishment.
Mind you, while digital transformation remains a top priority for governments, some of their CIOs have indicated that they are falling short of realizing benefits from their digital investments.
Apeksha Kaushik, Principal Analyst at Gartnerhas highlighted that «Global challenges such as inflation and talent shortages and their local repercussions are testing the abilities of government CIOs to respond with the right service delivery mechanisms, as well as timely organizational accountability. In addition, the ‘great resignation’, and competition from the in-demand business sector have forced governments to re-examine their approaches to balancing the shortage of in-house talent.«.
Kaushik also argues that governments are spending more and more of their IT budgets on replacing legacy applications. Thus, 57% of the plans of government CIOs contemplate an increase in the financing of application modernization in 2023, compared to 42% who contemplated it last year.
