Without a modern ITSM platform, state and local agencies may struggle with operational inefficiencies, security and compliance risks, and resource constraints.
Public-sector IT leaders face an evolving landscape shaped by new technologies, rising citizen expectations and increasing security threats. To stay ahead, agencies must embrace innovation while maintaining compliance, security and efficiency.
A key foundational layer of digital transformation is the modernization of IT Service Management (ITSM), ensuring that agencies can efficiently manage their IT resources, streamline service delivery and enhance user experiences. Without a modernized ITSM platform, agencies may struggle with operational inefficiencies, security and compliance risks as well as resource constraints.
THE PUSH TO MODERNIZE LEGACY SYSTEMS
Many government agencies still rely on outdated IT infrastructure, creating inefficiencies and security risks. In 2025, modernization efforts are accelerating with low-code/no-code ITSM platforms that include automation and integration, as well as some AI functionality. Agencies are prioritizing interoperability to enhance secure data sharing across departments and improve citizen services.
When getting started on the ITSM modernization journey, it’s important to:
- Conduct a thorough assessment of legacy systems to identify critical pain points
- Implement phased modernization strategies to minimize disruption
- Leverage cloud-based solutions with automation and integration capabilities for improved scalability and flexibility
- Encourage cross-agency collaboration to ensure seamless integration
“Our customers wanted transparency, they wanted buy-in, they wanted to have a stake in their request and to be able to provide feedback to us,” said Abigail Ferguson, customer success manager for Madison’s IT department.
The city’s legacy ticketing system provided “bare bones” updates on the status of tickets, Ferguson said, so the city modernized its ITSM platform and invested in a tool with robust self-service offerings to better serve constituents.
“The IT customer portal specifically has been an ongoing selling point for us to get buy-in internally [for ITSM modernization],” Ferguson said. “The culture was already in place to move forward and embrace a more transparent approach to service management and delivery.”
MANAGING BUDGET AND RESOURCE CONSTRAINTS
“If you ask IT leaders what their biggest problem is, they’re going to tell you about resource constraints,” said Andrew Graf, chief product officer at TeamDynamix. “Most public-sector IT organizations have hundreds of applications they’re supporting, and no one’s giving them any additional head count to support those apps while also dealing with an uptick in requests.”
Many agencies operate under tight budgets, limiting their ability to invest in modern technologies. Justifying IT investments in a cost-conscious environment requires demonstrating clear ROI.
To help you do this you can:
- Prioritize projects with measurable cost savings and operational efficiencies
- Utilize shared service models to reduce redundancies across agencies
- Advocate for long-term funding strategies that align with digital transformation goals
“TeamDynamix is a place where we are really trying to kickstart and accelerate the ideology that automation with the right tools can bring value not just to IT, but to other departments within our organization,” Hayes said. “We’re starting in IT so they can see the possibilities as we move forward with our digital transformation and expand outside of IT.”
For Hayes, ITSM modernization not only helped with resource constraints but also maintained top talent within the organization.
BRIDGING WORKFORCE SHORTAGES AND SKILL GAPS
The public sector often struggles to attract and retain top IT talent due to competition from the private sector. Upskilling employees and fostering a culture of continuous learning is critical.
“People feel so much more empowered and have so much more worth when they are doing things that are intellectually rigorous and challenging versus when they are just repeating the same mechanical actions over and over and over with very little thought,” Hayes said.
“Our ITSM is our entry point to our entire IT organization, and we want our employees to graduate out of this area into other roles within our organization — network technicians, client services, desktop technicians, developers and project managers,” he said. “If all they’re doing is handling tickets and doing the same mundane, manual tasks over and over, that’s not particularly great training. So, investing in tools that allow our employees to engage in meaningful work is something that’s important to us as an overall IT organization.”
With TeamDynamix now in place, Pima County is looking to automate and integrate as much of the manual ITSM processes into workflows as it can. “That’s something the organization is really just starting to comprehend as a vision that we want to get to overall,” Hayes said referring to automation. “My goal and hope is to make sure people understand the possibilities of workflow beyond just getting approvals routed because that’s all that we really do today.”
OVERCOMING ITSM MODERNIZATION RESISTANCE
Cultural and bureaucratic resistance to change can slow ITSM modernization and digital transformation efforts. Leadership buy-in and stakeholder engagement are necessary for success.
“We wanted to increase the maturity of our IT operations by moving to ITIL processes,” said Lisa Faison, CIO for the city of Goodyear, Arizona. Getting everyone onboard with this initiative was critical to its success.
With resource constraints and limited staff, Faison and her team focused on driving self-service adoption as the first step to better ITSM maturity, along with investing in a new ITSM platform.
“We did a training roadshow,” Faison said, where IT staff met with various departments and showed them how to use the self-service portal. They also handed out pens with the link to the portal etched on the side. This internal marketing campaign has contributed to widespread adoption, with about three-fourths of service requests now being submitted through the portal — and this is leading to faster problem resolution for employees.
If you’re looking to build internal buy-in for ITSM modernization and digital transformation, here are a few tips:
- Communicate the benefits of digital transformation to all stakeholders
- Involve employees early in the process to gain support and feedback
- Establish clear change management strategies to ease the transition
- Demonstrate quick wins to build momentum and reinforce the value of modernization
By addressing legacy system modernization, budget constraints, workforce shortages, ITSM modernization and digital transformation resistance, agencies can position themselves for long-term success.
Proactively tackling these challenges will enable public-sector IT leaders to enhance services, improve efficiencies and meet the evolving needs of citizens.
