Digital transformation barred by budget restrictions

A new study has found that 75 per cent of IT decision-makers in the public sector say that digital transformation is one of their organisation’s top three strategic priorities, but that budget restrictions are keeping them from achieving it.

The research, commissioned by technology company Yotta, also identified ‘in-house skills shortages’ (highlighted by 36 per cent of respondents) and ‘outdated systems architecture (referenced by 35 per cent) as key barriers to digital transformation.

Looking ahead to the next 12 months, technology and systems are apparently top of mind across the public sector, with 40 per cent of IT decision-makers polled saying that ‘implementing new digital technology’ is among their organisation’s two main digital transformation priorities over the next year, while 39 per cent cite ‘upgrading existing infrastructure’.

Furthermore, 45 per cent of IT decision-makers polled number ‘improved operational efficiency’ among the main benefits they expect their organisation to achieve from digital transformation in the future. Respondents also anticipate that the approach will result in improved engagement with the people using public services. In fact, 35 per cent expect ‘enhanced service delivery to public and other stakeholders’ to be among the main benefits their organisation will achieve.  

Phil Oldbury, director of customer service at Yotta said: “There is huge pressure on every public sector organisation today to do more with less. They have got tighter budgets to meet and fewer people in-house to deliver core services. Some councils clearly see this lack of funding and resources as a barrier to their digital transformation efforts.

“Yet, the public has growing expectations in terms of the quality of service delivery. All of this is effectively pushing organisations to move to digital; deliver efficiencies, improve quality and productivity; and cut costs. It is rapidly becoming a strategic necessity.”