Published on 10/03/25 and Updated on 09/09/25

Digital transformation is set to not only reshape but also transform the public sector. However, with the rapid evolution of technology, the public sector is facing more IT challenges than ever before that must be understood and tackled to drive successful digital initiatives.

In this guide, we will cover some key IT challenges the public sector is facing, covering upgrading legacy systems, addressing cyber security risks, and more.

How Does Technology Affect the Public Sector?

New technologies are bringing efficiency, transparency and accessibility to the public sector. From self-service portals on websites to providing real-time data for decision making, digital solutions now underpin almost every aspect of public service delivery.

From the NHS trialling AI tools to speed up hospital discharges, to Whitehall handing out £573m in AI contracts, artificial intelligence is a new frontier in technology allowing public sector organisations to deliver their services faster, more securely, and more cost-effectively.

When considering technology in the public sector, it’s important to recognise that citizens now expect the same level of convenience and responsiveness as they do from private enterprises. This makes digital transformation essential – not an option.

The public sector, however, faces more challenges than the public sector when it comes to adopting new technology. This includes budget constraints, legacy infrastructure, and the requirement to safeguard sensitive data. The public sector is also a target for cyber attacks, including the recent targeting of healthcare services

What Are the Challenges of Digital Transformation in the Public Sector?

It’s in this context that we can consider the IT challenges facing the public sector today. These include, but are not limited to:

1. Upgrading Legacy Systems

The first IT challenge the public sector is facing is upgrading legacy systems.

There are many reasons why legacy systems are still used in the public sector, from budget constraints to a lack of in-house expertise to implement and manage new systems.

However, legacy systems not only present a security challenge for the sector but are also a costly roadblock for organisations looking to transform their IT technology and processes.

A new report has shown that archaic technology is resulting in the public sector missing out on £45 billion in annual savings, emphasising what’s already at stake.

The public sector must adapt. While it will take time, failing to increase efforts with regard to upgrading legacy systems will severely limit public sector organisations and will likely exacerbate pressure on budgets and other processes.

2. Supporting Hybrid Working Models

A key IT challenge the public sector is facing is supporting hybrid working models.

An ONS survey has found that ‘half of public servants work from home some or all of the time’. 

However, a common challenge is that hybrid workers need to be able to work efficiently with secure network access, whether this is in the office or when working remotely.

Investment in networking solutions is required to improve security and productivity and drive efficiency across departments. 

Moreover, migrating to the cloud and investing in endpoint management solutions, for instance, can help bolster cyber security and alleviate the pressure on overstretched IT departments.

3. Addressing Cyber Security Vulnerabilities

The rise in data breaches and cyber threats poses significant risks and challenges for the public sector. 

With many services moving online, many public sector organisations have cyber security vulnerabilities that need to be addressed.

Cyber security must be managed proactively, with zero-trust approaches and multi-factor authentication, amongst other measures needing to become the norm to mitigate risk.

To address this, many organisations are increasingly turning to network security professionals to detect vulnerabilities and defend against malware, unauthorised access, and more.

Are you looking to bolster your organisation’s cyber defences? Look no further than Net Consulting.

We deliver managed IT consulting services to transform and secure medium to large enterprises, including the government.

Get in touch with our experts today on +44 (0)29 2097 2020.

4. An Increase In Demand For IT Talent

Another challenge the public sector is facing is an increase in demand for IT talent.

There is a growing need for skilled IT workers who are knowledgeable in both current and emerging technologies.

Research shows that ‘IT positions remain among the most in-demand roles in the global job market’. When paired with the distinct digital skills shortage in the public sector, the demand for IT talent becomes all the more apparent.  

Public sector organisations may find it increasingly challenging to attract and retain IT talent, particularly as they’re competing with private companies offering more competitive salaries that tempt talent away.

Without the right skilled workers, public sector organisations will find it difficult to adopt new technologies, which leads us to our next point.

5. Upgrading To Cloud-Based Technology 

Cloud-based technology has the potential to revolutionise public sector IT.

What Are The Benefits of Cloud Technology?

The benefits of cloud technology are vast. Cloud technology has the potential to cut costs, increase data security, and improve performance, to name just a few.

As such, many organisations view migrating from legacy systems to the cloud as the main route to digital transformation.

However, there has been a reluctance in many public sector departments to adopt the cloud due to security concerns and limited budgets, and the transition isn’t straightforward for many organisations.

While systemic change is challenging and upgrading to cloud-based technology will require thoughtful planning, the benefits of the cloud for the public sector are becoming all the more evident.

How We Can Help

At Net Consulting, we provide high performing secure technology with unbeatable managed IT consulting services for both public and private sectors.

Transform and elevate your organisation’s security posture to new heights with our cutting-edge IT solutions.

Contact us today to learn more about the digital IT services we offer and how we can help.