GovTech is not just about digitizing processes; it is also about reimagining the public sector as the operating system of society, where technology can unlock unprecedented value for all. The “why GovTech?” argument is compelling: governments worldwide are under increasing pressure to improve the efficiency, transparency and responsiveness of public services. GovTech offers a clear path to meeting these demands, with the potential to transform the way governments operate, deliver services and engage with their citizens. As GovTech evolves towards integrated systems, a whole-of-government approach will facilitate inter- agency collaboration, creating flexible and agile interoperable systems. While the projected GovTech opportunity ($9.8 trillion by 2034) is enormous, the “what” and “how” of implementing GovTech pose significant challenges for governments. Navigating the “what” involves a complex decision- making process: the GovTech market is broad, covering everything from digital identity systems and AI-driven analytics to smart infrastructure and public health technologies. Governments must carefully assess their needs, priorities and capabilities before deciding which solutions best suit their challenges. Unlike the private sector, where digital transformation is often rapid, the public sector faces unique constraints related to policy, politics, public accountability and service inclusiveness. This makes the task of identifying appropriate technologies more nuanced, as governments must ensure that these solutions are aligned with a complex array of policy objectives and meet the diverse needs of their populations. The real challenge lies in the “how” – integrating new GovTech solutions into existing government systems. Many public administrations still partially rely on outdated, fragmented legacy systems that are not easily compatible with modern digital solutions. Overhauling these systems is a complex, costly and time-consuming process, requiring technical upgrades and organizational change. Governments must rethink workflows, governance structures and service delivery models to realize the full potential of GovTech. This shift will require significant coordination across government departments and agencies, as well as strong leadership, to drive these changes. In addition to the technical challenges, governments must address critical data security and privacy issues. As public services become increasingly digitized, protecting citizens’ sensitive data is paramount. Regulatory compliance, cybersecurity and trust in government systems are critical issues that must be carefully managed to avoid breaches of public trust. In addition, governments need to build infrastructures that are not only secure but also resilient to the rapidly evolving landscape of cyber threats. Failure to do so could lead to costly security breaches and undermine public confidence in the very systems designed to better serve them. GovTech implementation will also revolve around choosing the right delivery model. Building everything in-house can often be just as impractical as fully outsourcing, so finding the right balance will be a strategic priority for governments. Collaboration with the private sector will be crucial to the success of GovTech projects, as many of the most advanced solutions in AI, data analytics and cloud computing are being developed by private companies. Governments must collaborate with innovators to access cutting-edge technology while balancing innovation with public control. It is important to avoid overreliance on private technology providers and to ensure that key public interests, such as data sovereignty and equitable access to services, are protected. Governments must rethink workflows, governance structures and service delivery models to realize the full potential of GovTech. 25 The Global Public Impact of GovTech: A $9.8 Trillion Opportunity

The Global Public Impact of GovTech 2025