FEATURE
only improve IT performance but also ensure regulatory compliance and bolster security. Their role extends to optimising applications for hybrid cloud environments, where flexibility and scalability are essential.
Some states, for example, have turned to MSPs to migrate decades-old unemployment benefit systems into hybrid cloud models that scale on demand, reducing backlogs and improving response times during economic downturns. These transformations demonstrate the potential for hybrid models to directly improve citizen outcomes.
Automation and AIOps reshape public sector IT
through AI-powered tools and automation,” said Nathan Frey, ISG Partner and Lead, US Public Sector.“ They are relying on managed service providers to administer their IT assets and supply the skills necessary for Digital Transformation.”
From ageing systems to agile architectures
As agencies transition to complex, modern architectures, automation and AI for IT operations( AIOps) are becoming essential, the report says. These tools proactively identify and address issues before they escalate, automate repetitive tasks and help organisations sift through massive volumes of public sector data to extract actionable insights.
By using predictive analytics and AI-driven monitoring, AIOps allows agencies to anticipate system failures, improve incident response and free up skilled staff for higher-value tasks. This not only reduces downtime but also improves the speed and quality of services offered to citizens.
The report identifies legacy systems – some in operation for decades – as representing a significant barrier to public sector efficiency. These platforms are costly to maintain, prone to inefficiencies and often incapable of meeting the evolving expectations of constituents. In many cases, legacy infrastructures are patched together with outdated code and hard-to-replace hardware, creating fragile environments that are prone to outages.
Agencies aspire to replace these systems with secure, scalable, cloud-based solutions but face a chronic shortage of in-house expertise. Many IT leaders in the public sector are caught in a balancing act: maintaining critical citizen services while simultaneously planning for long-term modernisation.
Managed service providers( MSPs) are identified in the report as stepping in to fill this gap. By overseeing infrastructure upgrades, MSPs not
An education department, for instance, might use AIOps to monitor online learning platforms, predicting when surges in traffic could overwhelm systems and automatically reallocating resources to maintain availability. This type of automation has direct implications for students and families, reducing frustration and improving accessibility.
The cost equation: FinOps and pay-as-you-go models
Budget constraints remain one of the most significant obstacles to modernisation. To stretch limited resources, many agencies are deploying FinOps strategies to control cloud costs, the report says.
FinOps is more than just accounting – it is a cultural practice that brings together finance, technology and operations teams to ensure transparency in cloud spending.
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