Unlocking Opportunities in Local Government

Local governments across Australia and New Zealand are undergoing a critical transformation, balancing community-centric service delivery with financial constraints, evolving citizen expectations, and the need for digital innovation. At the recent Public Sector Network Local Government Roadshow, six key events explored how councils are leveraging technology, data, and partnerships to improve service delivery while maintaining security, trust, and financial stability.

For technology vendors, this presents a significant opportunity to support councils in modernizing their operations, enhancing community experiences, and optimizing resource allocation.

The Shift from ‘Why’ to ‘How’

While the need for digital transformation in local government is well understood, the conversation has shifted from “why” change is necessary to “how” it can be implemented effectively. Across the roadshow, key themes emerged around improving citizen and community experiences through:
•  Technology enablement – AI, automation, and data-driven decision-making.
•  Service design – Citizen-centric approaches to improving service access.
•  Security & privacy – Protecting citizen data while building digital trust.
•  People & culture – Equipping public sector employees with digital skills.
•  Collaboration & partnerships – Engaging with industry, academia, and other government levels.
•  Creativity & innovation – Finding new ways to optimize services within budget constraints.

Where Councils Stand on Digital and Service Transformation

Councils are at different stages in their digital and service review journeys. More than 50% of local governments are either in the early stages of planning or have yet to begin structured service reviews. This highlights a major opportunity for vendors to provide strategic guidance, tools, and scalable solutions.

Regional Trends at a Glance
• NSW & QLD – Strong focus on planning and delivery of service review programs.
• WA & SA – High variation, with many councils still in the early stages of digital transformation.
• VIC – Leading in service delivery and optimization, with a focus on continuous improvement.
• NZ – Over 70% of councils are in the early planning phases, needing support to transition into delivery.

This data underscores the urgent need for expert guidance, digital solutions, and workforce enablement tools to accelerate local government transformation.

Key Challenges and Opportunities for Vendors

Councils are actively looking for solutions to enhance service delivery, improve financial sustainability, and modernize citizen experiences. The biggest challenges—and opportunities for vendors—include:
• Budget constraints & financial sustainability – Councils need cost-effective solutions that deliver clear ROI and optimize workforce efficiency.
• AI & automation – While AI-powered service enhancements are gaining traction, councils need guidance to balance automation with the human touch in service delivery.
• Citizen expectations – Residents expect seamless, personalized services similar to the private sector, pushing councils to rethink digital engagement.
• Workforce challenges – Attracting and retaining skilled talent is a major hurdle. Vendors can provide employee experience (EX) solutions to support training, retention, and digital upskilling.
• Data & transparency – Many councils lack the right data infrastructure to improve decision-making and performance tracking, creating opportunities for data management and analytics providers.

How Technology Vendors Can Support Local Government Transformation

Now is the time for industry partners, technology providers, and consultants to step up and help local governments navigate their digital and workforce transformation journeys. The key areas where vendors can provide value include:

✅ AI, automation & digital platforms – Solutions that streamline operations, enhance citizen engagement, and drive efficiency.
✅ Cybersecurity & data privacy – Protecting councils and communities from cyber threats while ensuring compliance and transparency.
✅ Service & workforce optimization – Tools that enhance employee experience, boost productivity, and address workforce shortages.
✅ Cloud & data analytics – Helping councils build strong data foundations for evidence-based decision-making.
✅ Smart city solutions – Infrastructure and IoT technologies to drive sustainability, mobility, and community well-being.

The Time to Engage is Now

Councils recognize the need for digital transformation but require expert guidance, technology, and strategic partnerships to make it a reality. For vendors, this is a unique moment to step in as trusted advisors and solution providers, helping local governments build resilient, efficient, and citizen-first services.

With budgets under pressure, expectations rising, and digital tools evolving rapidly, the public sector is actively seeking scalable, cost-effective, and high-impact solutions—and the right industry partners can help them achieve their goals.

Now is the time to engage, collaborate, and shape the future of local government innovation.