The U.S. public sector is working to catch up on digital modernization for its procurement processes, the Information Services Group reported Wednesday.
Providers of acquisition outsourcing and platforms are responding by increasing their investments in tools specifically designed for the sector, according to the 2023 ISG Provider Lens Procurement BPO, Transformation and Software Platforms report.
The study found that government agencies were compelled to modernize following mass resignations and supply chain interruptions during the COVID-19 pandemic.
Public organizations are replacing legacy systems with modular platforms that feature standardized policy application and enforcement. Public sector entities are also adopting tools with machine learning, automation, and natural language processing capabilities to improve operations.
“Public sector procurement in the U.S. has gone from stagnation to rapid change almost overnight,” said Nathan Frey, partner and lead of ISG Public Sector for the U.S. “We expect this trend to continue at least through 2025 — and probably accelerate.”
GovCon Wire, sister site of ExecutiveGov, is partnering with TechnoMile and research firm Forrester for a webinar on contract management digitalization. The event, themed “Digital Transformation of Contract Management: Automation Imperative for Federal Contractors,” will take place on April 26. Register to hear more about CLM technology adoption and trends.
