Technology played a vital role in government response to and recovery from the COVID-19 pandemic. Governments rapidly adopted digital tools and virtual services to continue operations while physical locations were closed. This included new communication portals, all-virtual public meetings, matured chatbots, and increased digital media consumption and online services by the public. However, legacy challenges also emerged and governments now face budget shortfalls while demand for digital services increases. Looking ahead, priorities include cybersecurity, digital modernization, and reskilling employees for new remote and automated work roles.

1. STATE AND LOCAL GOVERNMENT
MARKET BRIEFING - 2021

2. Technology Has Played (and Will Continue to Play)
a Vital Role in Response and Recovery

3. NewWeb/CommunicationPortalsEmerged

4. Public Meetings Went All Virtual - With Remote
Participation & Citizen Feedback

5. Chatbotsmaturedand
augmentedexistingstaff.

6. Cashless&contactless
behaviorsincreasinga
defaultforusers,but
agenciesmustbalance
accessibilityforthose
withoutaccess.

7. Barrierstomodernizing
legacyprocesseswere
temporarilyremoved,and
nowagenciesmust
anticipatewhatwillstay
andwhatwillgo.

8. Ninety-six percent of global
consumers said they are consuming
more digital media since the
coronavirus outbreak, with 60%
watching more news coverage and
52% watching more videos and
shows/films on streaming services.
(Source: GlobalWebIndex)
Newdigitalconsumptionbehaviorsalso
emergedandvideowasastandoutwinner.

9. Multi-Screen/Device+Omni-ChannelDigitalExperiencesEmerged

10. EmergingTechnologiesAcceleratedInAdoption

11. Data Source: Edelman 2020
Governmenttrusthas
increased,butsohave
theexpectationsfor
howitrespondsto
whatevercomesnext.

12. The “New Normal” Roles Government Plays
Source: Deloitte Development 2020

13. ButLegacyChallengesofthePastAlsoEmerged

14. There Are Still Legacy Process and Technology Issues

15. Initial COVID-19 Impact on Technology Investment Areas
• Enabling Remote Work
• Physical Device Provisioning
• Cybersecurity (End-Point Security, etc.)
• Online/Digital Service (Payments, Permits, Forms, etc.)
• Digital Signatures/Approvals
• Collaboration/Streaming Services
• Citizen Communication Tools
• Connectivity

16. PreandPost-COVIDImpacton
GovernmentTechnology

17. US State and Local Government IT Spending (Pre-COVID-19)
(Proj)
Source: Center for Digital Government February 2020

19. Source: Center for Digital Government Survey
State Government IT Priorities (Pre-COVID-19)

20. Source: Center for Digital Government Survey
2020 State Technology Priorities (During COVID) 2020-2021

21. Counties Cities
Source: 2019 Digital Counties and Digital Cities Surveys
Local Government IT Priorities (Pre-COVID-19) 2019-2020

22. 1.Cybersecurity
2.Budget and Cost Control
3.Citizen Engagement and Experience
4.Disaster Recovery/Continuity of Operations
5.Business Intelligence/Analytics
6.Business Process Automation
7.Cloud Computing
8.Hire/Retain/Nurture competent IT Personnel
9.Infrastructure Modernization
1.Cybersecurity
2.Budget and Cost Control
3.Citizen Engagement and Expe
4.Disaster Recovery/Continuity
5.Business Process Automation
6.Infrastructure Modernization
7.Business Intelligence/Analyti
8.Data governance; Transparen
9.Networks: Broadband, Conne
Counties Cities
Source: 2020 Digital Counties and Digital Cities Surveys
State and Local Government IT Priorites (During
COVID) 2020-2021
1. Cybersecurity
2. Budget and Cost Control
3. Citizen Engagement and Experience
4. Disaster Recovery/Continuity of Operations
5. Business Intelligence/Analytics
6. Business Process Automation
7. Cloud Computing
8. Hire/Retain/Nurture competent IT Personnel
9. Infrastructure Modernization
10. Increased Departmental IT Collaboration
1. Cybersecurity
2. Budget and Cost Control
3. Citizen Engagement and Experience
4. Disaster Recovery/Continuity of Operations
5. Business Process Automation
6. Infrastructure Modernization
7. Business Intelligence/Analytics
8. Data governance; Transparency, Open Data
9. Networks: Broadband, Connectivity; Digital Divide
10. Hire/Retain Competent IT Personnel
Counties Cities
Source: 2020 Digital Counties and Digital Cities Surveys
State and Local Government IT Priorites (During COVID) 2020-2021

23. Post-COVIDGovernmentChallenges/Opportunities
• Beta Burden - Understanding and measuring what pilots should stay.
• Shadow Applications - Integrating ‘apps’ that were stood up in response to COVID-19 into
the enterprise environment.
• Workforce Adaptation - Finding the right balance for employees to effectively participate,
collaborate, and measure performance.
• Experience Fragmentation - Although COVID-19 helped centralize certain levels of
government information, there is a fragmentation new technologies and approaches that
must be mitigated.
• Back to the Basics - COVID-19 exposed the need for full end-to-end process modernization
(i.e. allowing e-signature, etc.) and agencies will need to focus on shoring up this supporting
infrastructure.
• Reskilling Employees - Employees impacted by changes in their government role due to
increased automation and contactless experiences will need to be reskilled and transitioned.

24. Economic Impact | Challenges vs. Needs | Digital Experience | Future
2020 U.S. STATE & LOCAL DIGITAL OVERVIEW

25. State and Local Government Could Face a $959 Billion Dollar
Shortfall by Q4 2021.
Source: W.E. Upjohn Institute
Economic Impact of COVID-19 on State and Local Government Budgets

26. CENTER FOR DIGITAL GOVERNMENT
ISSUE: BUDGETS
Source: NCSL/CBPP

27. COVID-19 Pandemic Expected to Cause Sharp Revenue Drops in States
Source: The Center on Budget and Policy Priorities (CBPP)

28. Cities With Variable Revenue Sources Are Facing
Greater Challenges

29. Coronavirus Relief Fund
Ø Deadline to apply – April 17, 2020
Ø New Deadline to spend – December 31, 2021
Ø Communities > 500K pop. applied directly to federal government
Ø Communities < 500K pop. applied to their state
Ø This process varies by state

30. State and Local Government Jobs Still Far Below Pre-COVID Levels
Source: Bureau of Labor Statistics

31. Economic Impact | Challenges vs. Needs | Digital Experience | Future
2020 U.S. STATE & LOCAL DIGITAL OVERVIEW

32. Government Technology Challenges in Responding to COVID-19
Source: Center for Digital Government 2020

33. Source: 2020 Digital Counties and Digital Cities Surveys
Challenges Needs
US Local Government COVID-19 Challenges vs. Needs
% of Respondents
% of Respondents

34. US State Government Technology Needs

35. Economic Impact | Challenges vs. Needs | Digital Experience | Future
2020 U.S. STATE & LOCAL
DIGITAL OVERVIEW

36. Adoption
Percentage

37. Adoption
Percentage
Source: Center for Digital Government 2020

38. Adoption
Percentage

39. Adoption
Percentage

40. Adoption
Percentage
Source: Center for Digital Government 2020

41. Adoption
Percentage
Source: Center for Digital Government 2020

42. Economic Impact | Challenges vs. Needs | Digital Experience | Future
2020 U.S. STATE & LOCAL DIGITAL OVERVIEW

43. Looking to the Future of Work

44. Major Technology and Policy Investment Areas for US State & Local Governments in 2021
Source: Center for Digital Government 2020