Australian Public Sector Reframes Digital Modernization
Information Services Group (Nasdaq: III) published research examining how Australian public-sector organizations are redesigning services around data, trust and outcomes.
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Agencies prioritize AI, interoperable platforms and cyber resilience to simplify citizen experience and maintain trusted delivery, ISG Provider Lens® report says
The 2026 ISG Provider Lens® Public Sector Services and Solutions report for
“Public-sector transformation in
The Australian public sector is redesigning high-volume interactions in services including welfare, licensing, taxation, healthcare and education. While refreshing technologies, they are also addressing process improvement, customer experience and digital self-service across channels. Service designs increasingly need to work across physical and digital touchpoints, removing barriers created when individual steps are automated separately. This approach is designed to enable clearer, faster interactions for both citizens and public-sector employees.
Agencies are applying AI where data quality, security and oversight can support practical deployments. Current uses include assisted casework, knowledge retrieval, document triage, customer-service chat and operational forecasting. These capabilities are especially relevant to high-pressure environments that need timely information and consistent decisions. Stronger data foundations help agencies connect legacy systems, reduce program duplication, improve evidence-based decision-making and support greater interoperability.
Cloud rationalization and cyber trust are becoming integral to public-sector change as organizations expand connected digital capabilities. Buyers increasingly demand identity and access management, monitoring, managed detection, secure cloud environments and compliance services. They require technologies that operate within government assurance frameworks while maintaining continuity. Under the national government’s direction, agencies are adopting reusable platforms and common standards to enable secure data sharing across agencies, ISG says.
“Australian agencies are designing more accessible experiences while retaining the resilience needed for essential public services,” said Harish B, ISG principal analyst and lead author of the report. “This requires careful coordination across service design, security controls and the underlying data environment. Providers are helping public sector clients integrate platforms and strengthen operations in complex environments.”
The report also examines other trends in the Australian public sector, including the growing need to strengthen skills and rising demand for providers that can operate effectively across governmental boundaries.
For more insights into the IT challenges faced by public sector organizations in
The report evaluates 57 providers across five quadrants: Strategy and Enablement Services (Consulting), Managed IT Services, Business Process and Other Outsourcing Services, Digital Transformation and Modernization Services and AI and Innovation Services.
The report names Accenture, Capgemini and Infosys as Leaders in all five quadrants. It names HCLTech and IBM as Leaders in four quadrants each and AC3, NTT DATA and Optus as Leaders in three quadrants each. Deloitte, Kinetic IT, NRI, Probe Group, Telstra and Unisys are named as Leaders in two quadrants each. Amentum, CGI, Cognizant, Concentrix, Data#3, DXC, Mastek, Serco, Synergy Group, TCS and Wipro are named as Leaders in one quadrant each.
In addition, Mastek, NRI and Unisys are recognized as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
Customized versions of the report are available from AC3, Atturra, Kinetic IT and NRI.
In the area of customer experience, NRI is named the global ISG CX Star Performer for 2026 among Public Sector providers. NRI earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The 2026 ISG Provider Lens Public Sector Services and Solutions report for
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260930771576/en/
Press Contacts:
Laura Hupprich, ISG
+1 203-517-3132
laura.hupprich@isg-one.com
Erik Arvidson, Matter Communications for ISG
+1 978-518-4542
isg@matternow.com
Source: Information Services Group, Inc.