Government technology is entering a new era of modernisation, fostering innovations that are enabling a digital and sustainable future.
Govtech promises to align processes, reduce costs, and improve service quality
Even in the face of geopolitical uncertainty, pressing challenges like climate change, and rising citizen expectations, I believe governments now have more power than ever to provide essential public services to citizens, that are more efficient and accessible. With a wealth of emerging technologies at their fingertips, governments are better equipped to overcome barriers to service delivery. This is because government technology (govtech) is entering a new era of modernisation, fostering innovations that are enabling governments and public sector organizations create a digital and sustainable future.
All this potential can be quantified. According to a recent report by Capgemini, conducted in collaboration with the World Economic Forum and the Global Government Technology Centre Berlin, govtech’s potential societal impact should be valued at up to $9.8 trillion by 2034. This demonstrates the impressive scale of the benefits govtech> can deliver – benefits that governments worldwide cannot afford to overlook.
What’s driving the adoption of govtech?
Govtech can provide benefits in three main areas, addressing some of governments’ most pressing challenges. First, efficiency gains. Govtech promises to align processes, reduce costs, and improve service quality. Overall, governments can expect time savings in administrative processes and financial savings in public service delivery. We are also seeing that by automating repetitive, mundane tasks, public servants can focus on more strategic, high-value roles. Our research suggests that applying technology to automate processes and optimise resource allocation could save $5.8 trillion globally over the next decade.
Second, transparency. Corruption costs the global economy an estimated five per cent of GDP every year, stunting economic growth and eroding trust in public institutions. Digital tools such as e-procurement systems, e-invoices and digital IDs enhance accountability in government processes, which in turn can reduce corruption and build public trust. Govtech solutions could reduce the financial toll of corruption by $1.1 trillion by 2034.
Finally, sustainability. By sharing and building on existing solutions, the public sector can avoid reinventing the wheel when financial and human resources are already scarce. While we recognise that technology has its own impact on sustainability, our research shows that Govtech could deliver sustainability gains of $2.9 trillion by 2034.
From a smarter cities perspective, govtech solutions can drive both sustainability and efficiency across key thematic areas, providing tangible societal value. In infrastructure and urban development, digital monitoring and planning tools help optimise urban planning, building maintenance, and the management of public infrastructure. In the area of transport and mobility, these technologies enable more efficient, accessible, and environmentally friendly movement within cities. New technologies are solving key societal issues. For example, because AI can assume some of the responsibilities of time-poor urban planners, the building permit process is accelerated, addressing a shortage of apartments in cities.
Govtech in action globally
Of course, Government Technology is not a one-size-fits-all solution. The potential of govtech will play out differently according to region, constitution, and politics. To appreciate the impact of technology on government it is worth considering practical examples. After a 2010 natural disaster, Rio de Janeiro developed a data-driven early warning system, led by the City Council and Civil Defence, to improve disaster response. The system has enhanced monitoring, real-time communication, and citywide disaster preparedness, becoming a model for resilient, data-based disaster management.
Meanwhile, Singapore’s govtech agency has developed the Open Digital Platform, a smart city operating system that unifies multiple urban solutions to improve efficiency, sustainability, and user experience. It is expected to cut operational manpower by 50 per cent and reduce energy and water use by 30 per cent compared to national averages. The platform powers the digital twin of the Punggol Digital District, operationalised by JTC, Singapore’s sustainable industrial development agency.
The future of govtech
But we aren’t there yet. Understandably, governments have a range of challenges to navigate before they can realise the vast potential of govtech. Many public administrations are burdened with an empire of outdated, fragmented legacy systems that are incompatible with modern solutions. Governments will have to rethink workflows, governance structures and service delivery models to overcome technical issues. They will also need to address data security and privacy issues, prioritising the protection of citizens’ data to ensure compliance with regulations and avoid cybersecurity breaches.
To achieve this, digital transformation must be embedded as a core strategic priority, with leaders understanding the importance of investing in digital infrastructure and robust measurement in place to track efficiency and outcomes. Governments and city administrations should foster a culture of collaboration and innovation, both between nations, cities and with an ecosystem of providers, integrators and manufacturers. Perhaps most importantly, citizen participation is crucial, and can be facilitated by creating platforms for feedback and input.
While hurdles remain, what’s clear to me is that governments worldwide are leveraging the power of govtech to embed new technologies like AI, virtual reality, internet of things (IoT) and digital twins into their operations to deliver faster, more responsive services tailored to the needs of their citizens. There seems to be no doubt that, in the next decade, we will see public sector organisations, cities and governments capitalise on the numerous benefits that govtech offers, and citizens will reap the rewards.
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Autor(en)/Author(s): Marc Reinhardt
Quelle/Source: Smart Cities World, 23.04.2025
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