How to Do More with Less? Canberra’s Quiet Cost Containment Revolution: Rapidly Rising SaaS Adoption

Judy Hurditch, Managing Director & Principal Analyst at Intermedium founded the company over 20 years ago. It focuses on gathering and analysing empirical data on government technology use across Australia. Drawing on budget papers, contracting data, and policy initiatives, the company identifies trends in ICT spending, particularly as they relate to cloud adoption and digital transformation. The current context is shaped by tight budgets, ongoing economic pressures, and the government’s push for cloud-first strategies. These intersect with evolving citizen expectations, workforce modernisation, and the rapid pace of technological change, including the impact of generative AI tools like ChatGPT.

Analysis of APS contracting and budget data reveals a pattern of constrained funding, particularly for large-scale IT projects, with agencies increasingly favouring agile, smaller initiatives that can fail fast and deliver quicker value. ADAPT data reveals that, 61% of organisations are exploring or piloting generative AI, with strong interest but cautious adoption…