A 2022 Market Briefing on the State of the GovTech market.

1. State of Gov Tech 2022

3. The Gov Tech ‘App Store’ Moment
Data Source: Center for Digital Government 2022
The GovTech App Store Moment

4. App Store Moment: The Government Response
Data Source: Center for Digital Government 2022
How Government Is Responding

5. • Infrastructure Areas of Focus
• Growing Cloud System of Record Modernization (CRM, HCM, ERP, EDM, etc.).
• Upgrades to Network/Connectivity Infrastructure.
• Back to the Basics with Cybersecurity, Business Continuity, Disaster Recovery, IT Governance..
• Enterprise Wrappers on Disparate Infrastructure Layers (IAM, Data Lakes, etc.).
• Increase in Managed Service Delivery of Infrastructure Capabilities.
• Application Areas of Focus
• Growth in Cloud/SaaS/Best-of-Breed Applications at the Edge or Line of Business.
• Increased Focus on Service Delivery Availability & Experience (Both In-Person & Digital).
• Increased Utilization of Low-Code/No-Code Enhancements
• Intelligence Areas of Focus
• Increased Utilization of Business Intelligence & Analytics Across Enterprise.
• Increased Utilization of Automation and Staff Augmentation Technologies (RPA, AI/ML, etc.).
Data Source: Center for Digital Government 2022
How Government will Respond with Technology in 2022
GovTech Technology Focus for 2022

6. • Gov tech related spending
in 2021 exceeded our
original forecast and hit
$122 billion or 10% growth.
State and Local IT Spending Outlook

7. • IT spending is expected to
grow at 7% in 2022 and top
out at $130.5 billion.
2022 State & Local IT Spending Projections

8. MARKET OUTLOOK
STATE CIO PRIORITIES
Source: Center for Digital Government
1. Cybersecurity
2. Budget & Cost Control
3. Citizen Engagement
4. Cloud Computing
5. Increase Agency/Dept. IT Collaboration

9. MARKET OUTLOOK
COUNTY CIO PRIORITIES
Source: Center for Digital Government
1. Cybersecurity
2. Citizen Engagement
3. Process Automation
4. Cloud Computing
5. Broadband & Connectivity

10. MARKET OUTLOOK
CITY CIO PRIORITIES
Source: Center for Digital Government
1. Cybersecurity
2. Citizen Engagement
3. Disaster Recovery
4. Broadband & Connectivity
5. Workforce Retention

11. The Accelerating Talk of Recessions

12. The Accelerating Talk of Recessions

13. Other Indicators Signaling Recession
 The U.S. economy shrank 1.6% in the first quarter of 2022, so with one additional
quarter of decline we would be in a technical recession.
 The Federal Reserve raised rates in June by 75 basis points, the most since 1994, and
signaled new increases in the coming months.
 According to the Bureau of Labor Statistics, the annual inflation rate in May was 8.6%,
its highest level since 1981. It is forecasted to be 8.8% in June.
 Inflation-adjusted spending on goods dropped 1.6% in May, the biggest drop in 2022.
 Public perception of current and future business conditions and overall consumer
sentiment have rapidly declined.
Other Indicators Signaling Recession

14. Market Performance During Recessions

15. States and localities are one the nation’s largest
employers with over 19 million employees—roughly
13% of total U.S. employment.
States and local tax revenues are roughly 9% of GDP—
approximately half of the share of federal tax revenues.
On any given year, 28+ states would make the Fortune
100 list based on their overall budget.
MARKET OUTLOOK
STATE & LOCAL:
AN ECONOMIC JUGGERNAUT

16. MARKET OUTLOOK
28 stateswouldrankinthe

17. Healthy Budgetary Picture

18. Healthy Budgetary Picture

19. PANDEMICSTIMULUS =
$1 TRILLION FOR STATE & LOCAL
In response to the COVID-19 pandemic, the federal government
enacted unprecedented fiscal response bills totaling over $5 trillion.
• Nearly $1 trillion is directed at states, localities and educational
organizations.
To put this into context, state and local organizations have been
allocated $1 trillion since March of 2020, far more than the roughly
$275 billion provided during the Great Recession of 2008.
MARKET OUTLOOK

20. + $1.2 TRILLION IN
INFRASTRUCTURE FUNDING
States and localities manage and operate the nation’s
infrastructure and will benefit greatly from these funds.
• By some estimates, 90%+ of this funding will flow through
states and localities.
This funding is rolling out now and will continue to be
allocated over the next five years to fund projects that will span
a decade.
MARKET OUTLOOK

21. Emerging Opportunities

22. • Workforce (Recruitment, Retention, Reskilling, Reshaping)
• Federal Funding (Management, Eligible Uses, etc.)
• Data Management and Privacy
• Broadband & Connectivity
• Automation & Augmentation Technologies (RPA, etc.)
• Cybersecurity
• Modernization and Digital Transformation
MARKET OUTLOOK
EMERGING OPPORTUNITIES

23. Double-Clicking on the Future of Experience

24. What is the Next Killer App
for the Government
Experience?
🔗 CONTEXT

26. Image Source: Ironhack
Context Requires a Data Strategy

27. Image Source: Atlan

28. + Intent/Behavioral
(Key Requirements: Signal Capture + Embedded Feedback Loops)

29. Role, Properties/Businesses, Previous Interactions, E-mail Subscriptions, Location, etc.
Government Captures Many Signals Already

30. But data must be standardized and connected to extract contextual insights

31. You learn something with every click.
Every government experience interaction is part of
a feedback loop, you must choose how to capture
and leverage it.
Feedback Loops

32. Now, Let’s Talk
Architecture of Future
Experiences.

33. Government Experience Platform Evolution – 2023+
1. Channel Agnostic – Constituents and employees can engage from the medium
of their preference.
2. API-driven – Agencies deliver secure service and data APIs that enable new
pathways to service delivery.
3. Personalized and Anticipatory – A user’s experience is personalized,
anticipating needs by their role, previous interactions.
4. Accessible and Inclusive – Government experiences are built with inclusive and
accessible overlays allow information and services to be accessed by different
accessibility needs with different levels of access to technology.
5. Standardized – Data standards and an agency taxonomy has been embedded
into the experience layer and future technology procurements.

34. Emerging Future Experience Challenges

35. What We Must Balance In Designing for Experience
• Privacy/Data Ethics
• Transparency in Algorithmic Processes
• Compliance to Emerging Regulations and Standards
• Simplicity/Conciseness of Information
• Brand/Marketing/Communication

36. The Pace of Change Is Accelerating

37. Any Questions?