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Digital Transformation
Market Narratives
Government: CIO Budgets and Investment Priorities in 2024
Feb 25, 2025
This presentation examines the IT budget allocations of Australian government CIOs in 2024, focusing on priorities such as customer-facing applications, cloud optimisation, and ERP modernisation.
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This presentation examines the IT budget allocations of Australian government CIOs in 2024, focusing on priorities such as customer-facing applications, cloud optimisation, and ERP modernisation. The shift from OpEx to CapEx funding is highlighted, alongside concerns about underinvestment in innovation and the impact on long-term digital transformation.
Core Insights:
Shift from OpEx to CapEx
- In 2023, government CIOs shifted from 74% OpEx to 54% CapEx, directing more funding to long-term digital transformation projects.
- This change allows CIOs to focus on strategic investments, such as application modernisation and cloud migration, over routine operational needs.
Focus on customer-facing applications
- Australian government CIOs are allocating 20% more of their IT budgets to customer-facing applications compared to the private sector.
- Digital platforms like MyGov and Service NSW are central to enhancing citizen engagement, reducing reliance on in-person services, and improving service delivery efficiency.
Underinvestment in innovation
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