
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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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
1. Digitalization
Challenge: Much of the public sector struggles to get properly digitised. Part of this is caused by restrictive budgets. Another part of this is caused by bureaucratic inertia that prevents the adoption of new software out of concern for Public Safety and data protection. In many cases, this means that the public sector is operating 10 to 20 years behind the private sector in its ability to deliver services. Solution: The key for the public sector is to find software programs that allow them to provide the same level of service that the private sector does at a relatively low cost. The incumbent on this is the integration of the apps chosen so that all the information provided ends up in all the right places. The public sector very often finds itself siloed; efficient transfer of data between departments and governments is a requirement to provide the necessary services to the citizens, as well as the protection that the nation and its citizens need.
2. Data Visualisation
Challenge: in much of the world the public sector has no access to proper data and visualisation software. While there are terabytes of data produced every day in many nations, including tiny nations, it is very often not integrated and properly visualised. This means that decision makers are making decisions without as much data as humanly possible, without as much data as is available in 2024. Solution: Visualization software is readily available to the public sector. By integrating all the necessary systems and driving the data into the proper databases, a data visualisation system could allow decision makers both elected, appointed and hired to make the right decision each time because they're able to see broad patterns. Properly visualised data will also be able to allow the public to better monitor the actions of their government; a data visualisation program can take complex massive databases and convert them to easy to understand visual graphics.
3. AI adoption
Challenge: Artificial intelligence and machine learning are changing every industry, including the public sector. Because of its slow adoption of new software, however, the public sector struggles to understand how AI can and AI use its efficiency. Solution: Integrating complete programs that utilise artificial intelligence without requiring an understanding of how artificial intelligence is operating will make the public sector more efficient. In many cases, the public sector has a tendency to reinvent the wheel. This is often despite the fact that there are perfectly adequate off the shelf solutions to the public sector's issues and concerns. In 2024 and beyond, the public sector will need to seek out those off-the-shelf software solutions so that they can be assured they have the right solutions without having to worry about having to create all new solutions for their services.
4. Customer Journey
Challenge: the public sector traditionally has not looked at their customers as persons who need to be treated the way that they are treated in the private sector. This is beginning to change as the public demands a higher level of service from everyone of the organisations that they come in contact with, including Governmental organisations. Solution: Moving forward, the public sector will need to begin to use software programs such as customer relation management software (CRM) to track the journey. These programs will allow various departments within a government to communicate and easily see the citizens journey through government services from a detailed perspective. CRM software will make it much easier for various departments to understand each step of the process that citizens have gone through in their contacts and relationships with government agencies.
5. Personalization
Challenge: Very often, public sector services are delivered in a one-size-fits-all manner. As consumers become accustomed to the idea that even the largest corporations on the planet can provide them with personalised services, they're beginning to look to their governments for the same type of service. The slow adoption of new technologies creates a situation where the public sector struggles to provide that level of personalization. Solution: Artificial intelligence and machine learning can provide the public sector with highly efficient low-cost personalization services. This will allow self-service of many of the government services, preventing the need for more employees. Personalization using technology allows the customer to drive their own journey through the processes. Self-service, using artificial intelligence to guide decisions, will allow citizens to quickly move through and get what they need from government agencies.

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
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