According to a leading regional Gartner analyst, CIOs within Australia and New Zealand’s public sector are set for a challenging 12-month period as they navigate the complexities of managing their IT estates amidst budgetary constraints? Despite these reservations, some remain optimistic that AI investments will yield the productivity gains anticipated.
Recently, Gartner unveiled its public sector study results to the broader audience. The agency found that a staggering 94% of ANZ authorities’ CIOs identified information analytics as their top priority for high-expertise funding in 2025, trailed closely by investments in cyber security at 91% and utility modernization at 85%.
According to Dean Lacheca, a vice president and analyst at Gartner, a culture of frugality has taken hold across government agencies, as reported by TechRepublic. CIOs are seething with frustration as they navigate another year of stagnant ICT budgets, effectively frozen in real terms despite the usual annual price hike.
“Right now, we’re probably experiencing one of the leanest periods with austerity measures,” he stated. The realization has dawned that the pace of expertise adoption will not be characterized by significant acceleration.
Productivity surges as top priority for presidential chief information officers.
Lacheca notes that the allocation of resources for knowledge analytics and cybersecurity initiatives has exhibited a consistent trend in recent times. Despite this, progress remains sluggish, as investments in these areas continue to face significant hurdles.
Australian authorities have made significant strides in their cybersecurity initiatives, according to Lacheca. “While examining the Important Eight, though, it’s still surprisingly slow to enter an individual room.”
As the concentration on data analytics and cybersecurity continues to intensify, an emerging imperative has emerged: “human capital effectiveness,” with a staggering 94% of CIOs surveyed by Gartner placing a premium on productivity-driven results, a significant uptick from last year’s figures. The drive for increased productivity stems from the need for IT and the federal government to enhance efficiency.
There is a discernible difference, we observe. “While governments continue to allocate resources for high-profile digital initiatives and modernization projects, a closer examination reveals that chief information officers (CIOs) have faced significant budgetary constraints over the past few years.”
Authorities CIOs pinpoint AI as one of their top three technologies
According to the latest Gartner report, the top three technologies that Australian and New Zealand-based CIOs are set to deploy in the next 12 months are:
- Business cloud platforms (59%).
- (56%).
- Low-code/no-code platforms (53%).
Business cloud platforms
The prominent role of trade cloud platforms signals a significant shift towards embracing more agile digital solutions across the public sector. While a lack of significantly disparate expertise may prevail, the emergence of cloud-based solutions for financial institutions is driving a trend towards increased standardization across industries.
AI and generative AI
Surprisingly, authorities are driven by the prospect that AI’s expansive range of curiosity could boost companies’ productivity demands. Nonetheless, despite the initial hype surrounding generative AI, CIOs have finally begun to take concrete steps.
While Chief Information Officers (CIOs) require artificial intelligence (AI) to unlock increased productivity, Lacheca notes that their current role often serves as a “risk mitigator” in this context.
“We need to identify the potential obstacles hindering our progress,” he said, “as they’re seeking to ensure we’re adopting a balanced risk approach.”
Low code and no code
While low-code development has experienced significant growth in recent years, following the trajectory of pioneers like Lacheca is crucial for continued innovation. Citing the primary motivation behind this effort, he emphasized that authorities chief information officers (CIOs) sought to “preempt the mistakes of the past,” thereby creating an “accumulation of bespoke legacy knowledge” that now necessitates their attention and resolution.
By leveraging low-code platforms, IT teams can effectively bridge the gap between their existing skill sets and emerging technological demands, as he aptly noted: “The challenge lies in finding IT professionals with expertise in specific technologies.” To encourage exploration of low-code solutions, organizations can utilize their existing knowledge base to fill skill gaps.
Chief Information Officers (CIOs) must step up to passionately advocate for the value of IT.
While managing expertise risk remains a top concern for CIOs at 82%, they also prioritize showcasing the business value of IT within government organizations at 68%. Although ANZ’s chief information officers (CIOs) have been striving to shift away from a “company services-type mindset” inherited from their predecessors in IT.
While they may not be successful, they’re still trying to mentor or guide others.
As the 2025 milestone approaches, Lacheca expressed optimism that a sustained transformation will take place among authorities regarding their understanding of the true cost associated with legacy expertise. There is concern that massive IT investments and projects could be put on hold due to excessive anxiety, leading governments to temporarily delay or “kick the can down the road” with regard to these endeavors.
“As we move forward, I believe it’s crucial to consider a phase of possession where we can effectively mitigate potential risks,” Lacheca explained, “and the question is, how will we go about achieving this in a way that fosters genuine productivity gains?” “There is a tangible business case for the numerous benefits we will reap by modernizing our legacy technology.”
