Digital transformation still a work in progress for 94% of public sector organisations

Only 6% of surveyed public sector IT decision makers say their organisation has fully integrated digital transformation across their organisation. That’s according to new data from SolarWinds, a leading provider of simple, powerful, secure observability and IT management software. Approximately two-fifths (42%) say their efforts are well underway, while 40% say they have started on their digital transformation journey but progress is limited.

The research, based on a survey of 100 public sector IT decision-makers, reveals that while two-thirds (60%) of IT professionals say advancing digital transformation is a top future priority, the public sector as a whole is currently struggling to modernise systems and services. That’s despite growing pressures from the UK government intended to overhaul current public sector services and set them up for a digital future.

Legacy systems continue to be an ongoing barrier to modernisation in the public sector. A significant proportion (59%) of surveyed IT leaders in the industry admit that they continue to rely on a traditional, on-premises data centre environment, with nearly half (42%) expecting that to remain the case three years from now.

Another key challenge hindering transformation efforts is the persistent lack of digital skills across the workforce, with over half (58%) of respondents citing workforce skill and talent gaps as the top challenge to digital transformation. This issue was felt most acutely among Ministry of Defence and Security respondents – with the majority (73%) saying it’s their greatest obstacle.

Security and cost are also proving difficult to navigate. Over half (51%) of public sector IT leaders point to data privacy and security concerns as a major barrier, while 49% say that limited budgets are hampering their ability to modernise effectively.

While the UK government sees artificial intelligence as a key enabler for enhancing public services, less than a third (30%) of respondents currently view AI integration as a top priority. In contrast, over half (51%) view observability as extremely or very important for accelerating their organisation's digital transformation efforts.

Commenting on the findings, Richard Giblin, Head of Public Sector and Defence at SolarWinds said, "These findings show that while digital transformation is high on the agenda, many public sector organisations are still only at the starting line. The research also echoes broader concerns across the sector that transformation efforts are being held back by legacy mindsets and severe underinvestment.

“Skills gaps, legacy infrastructure, and limited budgets are creating a plethora of challenges—and without focused investment and strategic support, the gap between ambition and execution will only grow. The opportunity is there, but we need to act now to equip public sector teams with the tools, training and visibility they need to move forward with confidence."

“The public sector plays such an important role in the daily lives of millions––from healthcare and education to social services and public safety. Ensuring the modernisation of these essential services isn’t just about efficiency, it's about delivering better, faster and more accessible experiences for all.”