Hailing a ride-share, ordering food, booking a homestay, or streaming a movie has never been more easy and accessible than they are today. However, can the same be said of citizens’ interaction with government services? Could GovTech be the answer?

GovTech seeks to modernize the public sector through the application of emerging technologies. One may say that IT modernization of the public sector has been taking place for years. GovTech, however, goes beyond simply applying technology to workflows. Its main objectives are strengthening government systems and functions, enhancing the delivery of public services, increasing citizen participation, and building a dynamic, tech-savvy public-sector workforce.

GovTech spending has grown to a phenomenal USD 400 billion globally, with several startups entering the space with innovative technologies and challenging the large, established technology providers. This Insight discusses what GovTech really is, the factors driving its demand, and the challenges to its growth.