Public tech review published
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Australia’s governments face urgent demands to modernise ageing systems and tighten cybersecurity.
The new Public Sector Tech 2024 review highlights how Australia's federal, state, and local governments are grappling with outdated technology, skills shortages, and fiscal constraints.
Despite being ranked fifth by the OECD in the 2023 Digital Government Index, many government systems are ageing, putting this ranking at risk.
The analysts say the federal government is set to spend $11.7 billion on IT in 2024, part of an overall $19 billion public sector IT spend - a 9.3 per cent increase.
Yet much of this will be consumed by the need to maintain legacy systems, which account for up to 40 per cent of IT budgets.
Chris Fechner, CEO of the Digital Transformation Agency (DTA), pointed out that “legacy debt” is hampering progress. He noted that some developing countries, unburdened by outdated systems, are overtaking Australia in digital transformation.
One example of tackling legacy systems is the Australian Digital Health Agency's move to a microservices-based approach.
“We are breaking down old systems in chunks,” said chief digital officer Peter O'Halloran.
A major issue across all government levels is the shortage of digital skills.
Fechner highlighted the challenge of finding talent for not only technical roles but also policy and service delivery.
To address the skills gap, O’Halloran is focusing on retraining allied health professionals for digital roles.
“They bring valuable insights and can be retrained as business analysts and change managers,” he said.
The report says state governments face similar challenges, particularly with cybersecurity, as they struggle to maintain systems well beyond their prime.
“Cybersecurity remains an overarching trend,” said Gartner’s Dean Lacheca.
Tight budgets have also left some healthcare systems dangerously reliant on outdated technology, with some hospitals still using 25-year-old software.
At the local level, the review finds councils like Sunshine Coast have made significant strides in modernising IT infrastructure while cutting costs. Sunshine Coast CIO Dave Burns reported $3.9 million in savings over five years from IT consolidations.
The tech review says cloud services are enabling state and local governments to improve agility and reduce costs.
South Australia’s Department for Infrastructure and Transport has successfully re-platformed key applications to the cloud. CIO Richard Hill emphasised the benefits of improved security and performance.
AI is also gaining traction too, helping governments enhance service delivery and manage budgets more efficiently.
“The next phase of government service delivery will focus on agility,” Lacheca saod.
The analysts say that Australia’s public sector is managing a balancing act between modernising its systems and maintaining fiscal discipline.
With growing IT investments, tech leaders stress the importance of carefully managing both short-term challenges and long-term digital strategies to continue improving service delivery and cybersecurity across all levels of government.