Breakthrough Innovation Through Digitalization in the State and Local Government Space

July, 2024

State and local governments are currently facing the dual challenges of aging infrastructure and the need to improve citizen experience. These pressures are compounded by the necessity to address public safety and public health support delivery issues, as well as a higher emphasis on sustainability. To address these challenges, governments are expediting their digital transformation initiatives, focusing on infrastructure modernization and automating core processes to better serve the public. They are also investing in digital solutions to enhance citizen engagement and outreach through various digital channels. Balancing cost control, operational improvements, and enhanced citizen services, governments are collaborating with service providers to fast-track digital adoption.

Both demand-side and supply-side trends are covered in our State and Local Government Digital Services 2024 Market Insights™ and State and Local Government Digital Services 2024 RadarView™, respectively. These reports present a comprehensive study of digital service providers in the state & local government space, including top trends, analysis, and recommendations. They also take a close look at the leaders, innovators, disruptors, and challengers in this market.

We evaluated 27 service providers across three dimensions: practice maturity, partner ecosystem, and investments and innovation. Of the 27 providers, we recognized 16 that brought the most value to the market over the past 12 months.

The reports recognize service providers across four categories:

    • Leaders: Accenture, Capgemini, IBM, Infosys
    • Innovators: CGI, Cognizant, NTT Data, TCS
    • Disruptors: Atos, Conduent, HCLTech, Kyndryl, Wipro
    • Challengers: DXC, Fujitsu, Unisys

Figure 1 below from the full report illustrates these categories:

Moneyshot 5 1030x687 - Breakthrough Innovation Through Digitalization in the State and Local Government Space

“Public sector entities are utilizing digital transformation to improve community well-being and promote self-sustainable cities,” said Henry Guapo, managing partner at Avasant. “Through strategic partnerships, they are advancing citizen-centric initiatives, smart infrastructure, and a digitally skilled workforce to meet the evolving needs of society.”

The reports provide several findings, including the following:

    • Modern citizen services demand continuous technology upgrades and overhauling of legacy systems
    • Citizens are scrutinizing governments, demanding greater accountability and improved performance in the delivery of public services
    • The connected data landscape is the core of smart city operations, enabling the essential flow of information that powers decision-making and drives efficiencies
    • Cybersecurity is paramount as public data proliferates interconnected systems via digital interactions and citizen services
    • The imperative to drive equitable access and sustainable practices, which ensure a better future for citizens, is driving government policies

“Governments are improving the citizen experience by providing personalized services, optimizing infrastructure management, and promoting sustainable communities,” said Eratha Poongkuntran, research leader with Avasant. “These innovations enhance citizens’ quality of life and make cities more efficient, responsive, and livable.”

The RadarView™ also features detailed profiles of 16 service providers, along with their solutions, offerings, and experience in assisting state and local governments in their digital transformation journeys.


This Research Byte provides a brief overview of the State and Local Government Digital Services 2024 Market Insights™ and State and Local Government Digital Services 2024 RadarView™ (click for pricing).