Public Sector

Arcsen recognizes the importance of digital transformation for public sector organizations to deliver services effectively. We play a crucial role in this transformation, converting back-office operations into centers of innovation fueled by data insights.

Let's dive right into the public sector industry Outlook.

The sizing growth of the public sector often has a paradoxical relationship to the health and strength of the economy of the nation. If the economy of a nation is extremely strong or extremely weak, the public sector will continue to grow in order to provide services to the citizens and companies as they’re needed. In Middle economies where the growth is slow, the public sector tends to remain stable or shrinks slightly in order to accommodate shrinking National budgets caused by reduced tax revenues.

In this industry Outlook will look at the public sector as it’s growing or shrinking in the entire world, followed by a closer look at the EMEA region.

We will then take a close look at many of the challenges that the public sector is struggling with and provide some possible solutions to those challenges.

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Leading Change, Igniting Progress in the Public Sector with Arcsen and Salesforce.

Overview of Industry

Globally, the public sector is a mixed bag of growth and shrinkage. In some nations, where the economy is slow, government services are expanding to provide the services citizens need in order to survive. In most economies on the globe, the public sector is remaining stable as the economies are growing at a very slow pace, approximately 2 to 3% on average around the world.
While the public sector employs billions of workers, it is not itself necessarily an economic driver. This often makes the economic outlooks of the public sector difficult to match up. Some reports will show how much the public sector is growing or shrinking; other reports will reflect the total cost of the economic sector to a particular Nation.

EMEA Region

In the EMEA region, the public sector is, in most cases, stable, if somewhat bloated. Many of the nations in the region, particularly in the EU, are already quite heavy with public sector employees. In many parts of Africa, the governments are frequently unstable, therefore the public sector will shrink and expand whether that government is able to be viable or not.
The public sector throughout the region is presented with opportunities for new digital technologies that could improve the delivery of services, increase efficiency, reduce costs, and provide a better customer journey. The concern or challenge for many nations is that the public sector often moves more slowly than the private sector simply due to the bureaucracy that must approve and pay for any technological improvements.

In a report from the McKinsey Global Institute, they expressed concern that the digitally lagging sectors of the public service industry are costing taxpayers and governments money. If they were to improve their use of AI and machine learning, Mackenzie predicts they would add 2.5 trillion euros to their GDP in a single year. Mackenzie states that if the EU were to digitally optimise their operations, they would realise a consistent 1% boost to GDP across the region.

Net Zero Cloud

We're committed to sustainability in public sector organizations at Arcsen. We use Salesforce's Net Zero Cloud to help achieve this goal. This cloud solution assists in cutting costs and emissions by overseeing sustainability efforts. With features such as energy management and emissions tracking, Net Zero Cloud enables agencies to meet their sustainability targets while promoting teamwork between departments. By integrating sustainability into their operations, public sector organizations can make a positive impact on the environment and work towards a greener future.

Challenges of the Public Sector Industry

Summary of the Public Sector Industry - 2024 and Beyond

In 2024 and beyond, the public sector will update and speed up its options for new technologies. There is already a global push to include AI and machine learning in the public sector. Cyber security concerns, while valid, are often addressed in the programs that have been created for the private sector.

As many nations, particularly in the EMEA region, struggle with high debt levels, there will be a need for higher levels of efficiency without having to hire more employees or expand the sector. In places like the Middle East, where the public sector is bloated, it is expected that technology will replace some of those individuals and provide the same services at a much lower cost than a higher speed.

2024 Industry Outlook
Public Sector

Public Sector Solutions expedite services through automation and AI, while the Net Zero Cloud supports sustainability management, cutting costs and emissions.