Tight Budgets, Rising Demands & Rapid Tech Change: How Public Sector Handles Digital Pressure

A Nordic report from GlobalConnect highlights a series of challenges facing IT leaders in the public sector. Many report that resources are insufficient, regulations are difficult to interpret, and internal expertise varies widely. Nearly half say they lack adequate means to meet their organisation’s security ambitions.

How well prepared are Nordic authorities and municipalities for a digital future? GlobalConnect’s latest IT Insights report is based on a selection of responses from IT leaders in the public sector, drawn from a total of 225 in-depth interviews conducted by Demoskop across Sweden, Norway and Denmark. The findings point to clear trends: the public sector faces a difficult balancing act where technological development, security requirements and limited resources frequently collide.

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“Many IT organisations in the public sector have a complex mandate. They must both maintain critical public infrastructure and future-proof operations, often with limited resources and slow procurement cycles. That increases the pressure on IT leaders,” says Anna Granö, EVP B2B at GlobalConnect.

Key findings from the survey include:

  • 85% report they continuously replace outdated parts of their IT environment
    Yet only 5% say their environment is optimal. Many are uncertain whether their overall setup meets requirements, indicating an ongoing technical backlog.
  • One in four public organisations has completed a full cloud migration
    Cloud adoption has taken strong hold in the public sector—according to the survey, more so than in the private sector.
  • 45% say they lack sufficient resources to achieve their desired security level
    Almost half report that budget or expertise—or both—are insufficient to meet current and future requirements.
  • One fifth assess staff cyber security knowledge as low
    This points to a need for broader awareness beyond the IT department.
  • Uncertainty around new regulations is widespread
    More than one in three IT leaders in the public sector say they do not know whether the NIS2 directive applies to their organisation.

“The IT environment has become more complex than ever, with more connected devices and a rapidly changing landscape. At the same time, skills shortages make it difficult for many public organisations to keep pace. That creates a challenging daily reality for many IT leaders,” says Anna Granö, EVP B2B at GlobalConnect.

The report also shows that many struggle with how to handle future technologies. Fewer than half (45%) feel well prepared for developments such as AI development and growing data volumes. Regarding quantum technology, half of respondents report poor or very poor understanding of its implications—even though the technology could eventually affect everything from encryption to information security.

Download the full report here.