Understanding the digital evolution of the public sector for the near future in 38 stats
The Public Sector has been facing increasing pressure to modernize its services and streamline digital service delivery to engage a broader, more tech-savvy audience. Improving citizen satisfaction is crucial to increasing engagement with public institutions. What should the public sector consider in the near future regarding the digitalization of citizen experiences? We'll explore this through real stats gathered from experts around the world.
Spoiler alert: These stats lead to the strategic priorities for delivering better services, increasing citizen satisfaction, operating more effectively, and regaining public trust.
Citizen Expectations are Set By Consumer Experiences
Government organizations, constrained by budgets and limited tech talent, are challenged more than ever to provide services in a manner that meets the expectation of the citizen consumer.
1. 40% of consumers now prefer self-service over in-person services. SuperOffice
2. 73% of customers prefer to use a company’s website, instead of using social media, SMS and live chat for support. SuperOffice
3. 75% of buyers prefer virtual interactions and a more self-service approach. Insight Brief
Failing to Meet Citizen Expectations
Despite the Public Sector's desire to become a digitized industry, citizens still don't perceive an acceptable level of digital experience. McKinsey research suggests there is one area where state leaders could start delivering significant results for the constituents they serve: customer experience.
4. 60% of citizens have a strong preference for digital channels. McKinsey
5. 81% of government agencies aim to become digital organizations. CGI
6. 70% of managers at government organizations believe their citizen experience (CX) is on par with the private sector, while constituents rank government last among ten sectors. Deloitte
7. Only 47% of citizens surveyed express satisfaction with online government services. Forrester
8. Only 40% of people have confidence in the government organizations they interact with. Forrester
Prioritize User Experience for Maximum Impact
Often ranked last compared to other sectors, governments must make citizen experience a strategic priority. People increasingly expect not just digital, but consistent omni-channel service, and high levels of personalization.
9. Citizen desire for more digital interaction with governments, as opposed to in-person services, has increased from 29% to 39% between 2020 and 2022. Accenture
10. Since the onset of the pandemic, the percentage of consumers who prefer in-person commercial services has dropped to around 20 percent, which is a significant decrease of about 20 percent from the previous rate of approximately 43 percent. KPMG
11. 53% of survey respondents in 2022 said accessing public services is frustrating. Accenture
12. Only 36% of citizens find government processes and interactions intuitive. Accenture
13. 65% of citizens prefer to interact with government services through multiple channels, including online, in-person, and over the phone. McKinsey
14. 48% of public sector executives have pursued increased citizen value as a key organizational goal, while 45% have pursued faster time-to-market for new services. Accenture
15. By 2023, at least 85% of governments without a total experience (TX) strategy will fail to successfully transform government services. (Top Technology Trends in Government, Gartner)
Lack of Efficiency in Content Management Contributes to Lower Citizen Satisfaction
Managing content is a significant challenge for the Public Sector. This makes life harder for both employees and citizens.
16. 49% of government workers report difficulty in locating information at work. This causes frustration among public employees and hinders their ability to provide good citizen service. Nintex
17. 54% government workers cannot find the information they need when they need it. The content is often disorganized, outdated, and scattered across multiple websites. CGI
Driving Innovation and Improving Citizen Service
Government agencies are now seeing the value in building on platforms to accelerate transformation.
18. According to Gartner more than 80% of government digital implementations that do not build on a technology platform will fail to meet objectives. Gartner
19. Government spending for IT consulting and managed services is expected to increase from $150 billion USD in 2022 to over $200 billion in 2026. Gartner Predicts 2023: Governments Heighten Focus on Mission Impact Amid Global Uncertainties.
20. By 2025, 95% of new IT investments made by government agencies will be made in XaaS Solutions. Gartner
21. Over the next five years cities globally plan to prioritize using a digital platform. 70% plan to use a digital platform to address multiple citizen needs through one personalized interface. Deloitte
Facing Internal Challenges to Growth
Public sector cultural barriers and budget constraints are two major problems that public sector leaders should pay attention to, as they affect the effectiveness and viability of projects.
22. McKinsey & Company estimates that around 70% of transformation projects fail. McKinsey
23. 47% of government CIOs indicate organizational culture is the biggest barrier to scaling digital transformation. Gartner
24. By 2026, governments will increase spend on external IT service providers by at least 25% to counterbalance internal talent scarcity. Gartner Predicts 2023: Governments Heighten Focus on Mission Impact Amid Global Uncertainties.
25. 67% of government organizations are pursuing transformation yet, because of inflexible business models, only 5% succeed. Gartner
26.Worldwide IT spending is expected to grow 5.1% in 2023. Gartner
Cloud Reaches New Heights in the Public Sector
Secure public clouds give public sector organizations more flexibility, improved agility, and lower costs.
27. 70% of state and local government executives highlighted that cloud is their preferred environment for hosting citizen and mission data. Deloitte
28. 83% of public sector leaders see cloud as essential to drive innovation and enable new business models. Accenture
29. 82% agree that cloud tools have made technology usable by most employees. Accenture
30. 87% believe technology accessibility by common employees, due to the cloud, is an important catalyst in driving innovation across their organizations. Accenture
31. 57% of public service leaders believe that it is business critical to accelerating cloud adoption. Accenture
32. 70% of companies will employ hybrid or multi-cloud management technologies, tools, and processes. McKinsey
33. According to Gartner, in 2023, 33% of Governments will invest in Application Modernization and 62% in Cloud Platforms. Gartner
Modernize Legacy Applications or Create Modern Experiences Through App Integration? Yes to both.
Legacy tech and the lack of integration in the public sector IT ecosystem remains a barrier to driving innovation. It is still among the top priorities of industry leaders.
34. 80% of government IT spending is on operating and maintaining legacy systems. GAO
35. 51% of citizens would increase use of government services if offered an integrated portal. Accenture
36. 43% of Governments will invest in integration technologies and APIs in 2023, which reinforces that managing a complex, diverse, siloed IT ecosystems are still a major obstacle to transformation. Gartner
37. By 2025, 35% or more of government legacy applications will be replaced by solutions developed on low-code application platforms. Gartner Predicts 2023: Governments Heighten Focus on Mission Impact Amid Global Uncertainties.
38. 84% of public sector respondents in a 2023 Deloitte survey have recently invested in integrated technologies. Deloitte
Citizen Centric Innovation
The Public Sector is still far behind other verticals, but like the others before them, customer experience remains as one of the most strategic areas of growth. The last few years, with social evolution towards more digitized societies, the push for online services due to the pandemic, and the need to be more efficient in economically challenging times, are putting pressure on public sector organizations to digitize as soon as possible.
Will government agencies be able to carry out this ambitious challenge on their own? Most, whether by necessity or by choice, choose to manage it alongside IT service partners and technology vendors that bring experience in solution development and project implementation in both the public and private sectors.
The transformation of citizen experience has begun all over the globe and these statistics show that it’s not slowing down.
Are you looking for a technology partner in your public sector digital transformation journey?
Liferay Digital Experience Platform enables you to do more with less by creating secure and personalized solutions for citizens and employees that improve efficiency, streamline service delivery, control costs, and increase user satisfaction.
Learn more.
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