In an era where digital transformation is reshaping both public and private sectors, government agencies face unique challenges in modernizing their IT infrastructure. IDM asked George Harb, Vice President-ANZ at OpenText, what this new report on legacy systems reveals about government agencies’ struggle with outdated technology, the risks they face, and strategies for successful modernization that balance fiscal responsibility with service delivery.

IDM: Your report indicates that government agencies spend 80% of their budget running existing systems - substantially more than banking and finance sectors. What makes government IT infrastructure particularly vulnerable to this imbalance?

GH: This imbalance is a consistent pattern across the public sector, as we've observed through our engagement with all levels of government. It often comes down to scale, complexity, and compliance requirements. Systems in the past have been built bespoke, and as regulations have increased, it's become more difficult for agencies to identify modernization or transformation pathways due to the risks associated with information or systems they must manage.

The risks associated with government information systems have increased, adding to the complexity. In contrast, private enterprises have greater ability to decommission legacy platforms without the restrictions that typically constrain government organizations. That's why you see a disparate level of spending on legacy systems in government versus private sector.

IDM: The white paper outlines several risks of maintaining legacy systems, from cybersecurity vulnerabilities to compliance issues. Based on your conversations with Australian government agencies, which of these risks are most pressing right now?

GH: I think compliance and regulatory risk continues to evolve and increase. Whether it's obligations around privacy, Freedom of Information, or data retention, maintaining legacy systems to support these requirements becomes increasingly complex and expensive.

Many of these legacy systems present cybersecurity risks and vulnerabilities. The more an organization maintains disparate legacy platforms, combined with the departure of subject matter experts, the greater the likelihood these systems won't be maintained properly, creating openings for cybersecurity incidents.

IDM: The report recommends an "unassailable business case" approach aligned with core government investment drivers. Which of these four drivers - attending to neglected core services, managing finances responsibly, anticipating future needs, or growing the economy - have you found resonates most strongly with decision-makers?

GH: The two that have the biggest influence on each other, and which decision-makers often grapple with, are managing finances responsibly while ensuring they attend to neglected core services. Addressing these core services typically requires spending, particularly in areas like health, justice, and social support. The citizen experience can be heavily influenced by the technology being used.

If that technology needs updating, the challenge becomes how to do it while managing finances responsibly. Your sustainment costs need to decline while your investment cost grows, ultimately reaching a point where your technology helps reduce long-term operational costs while still enabling service delivery. It's somewhat of a conflicting scenario, but both aspects are necessary to deliver the outcomes that government seeks.

IDM: You advocate for an iterative approach rather than "big bang" projects. What specific metrics should agencies use to measure success in these smaller, incremental modernization efforts?

GH: It comes down to three areas. First, reducing risk - understanding the existing risks and tracking how they're being addressed through the organization's risk register. Second, user experience uplift - measuring how internal or external users' experiences are being impacted by technological changes. Third, speed to benefit - governments are increasingly concerned with return on investment and how quickly benefits materialize from their investments.

In practical terms, an example would be tracking metrics like critical legacy applications being retired, measuring how that impacts employees' access to data and their ability to serve customers more quickly, and whether the project is being delivered on time. Those are what these metrics mean in layman's terms.

IDM: The NSW Government's State of Legacy program is highlighted as a model approach. What specific elements of this program do you believe other states and the federal government should adopt?

GH: The risk-prioritizing approach, strongly aligned with their overall whole-of-government architecture, is important. Aligning modernization with your strategy and technology roadmap is key.

The program emphasizes standardizing the legacy roadmap, clearly articulating the benefits of moving off legacy platforms, and enabling cross-agency collaboration to capture benefits more broadly. These elements are crucial for creating a legacy retirement or decommissioning plan that can be replicated from a framework perspective.

The structure needs to address questions like: Is it a cloud-first structure? Is it hybrid or modular? How does it align with whole-of-government architecture? That's ultimately where OpenText adds value - providing flexible options for governments to deploy according to their roadmap and whole-of-government architecture.

IDM: You mention that unnecessary encryption wastes capacity, drives up costs, and increases emissions. Can you quantify the environmental impact of poor data management practices in government IT?

GH: It's about eliminating redundant, obsolete, and trivial data. The more data you retain, the more compute power and servers you need, and consequently, the more power required to run those servers.

The more you can consolidate and simplify, the more you reduce costs and enhance performance, while ensuring agencies and users get the information they need quickly. That's how environmental impact can be influenced - by thinking strategically about reducing that footprint.

IDM: Government budgets are tightening, with fewer major digital initiatives being approved. How has this affected the conversations you're having with agencies about modernization?

GH: There's absolutely a shift toward cost justification and value-for-money assessments. Agencies are looking at ways to share infrastructure, leverage cloud environments, and implement multi-SaaS environments that still meet security and regulatory requirements.

Everyone recognizes the need to modernize and understands that modernization impacts how government works. They're seeking low-risk, modular approaches and solutions that can complement current operations while providing a roadmap for future modernization phases. That's where most of our conversations with government agencies are focused.

IDM: The report mentions government employees expecting modern tools similar to what they use in daily life. How significant is this workforce expectation as a driver for modernization compared to other factors?

GH: You want to attract and retain good staff while also appealing to the next generation of workers. Modernization is key, whether in enterprise or government, as driving a better employee experience directly links to employee satisfaction.

The expectation for modern tools exists, and government departments should recognize this as one of the key reasons for modernization - to improve employee experience, help with retention, and ultimately impact customer experience, as the two are clearly linked.

IDM: AI adoption is highlighted as a future need that legacy systems might hinder. How are forward-thinking government agencies preparing their data infrastructure specifically for AI implementation? And how can OpenText help?

GH: Everyone we talk to agrees they need to understand their data and prepare it for eventual wider AI adoption. That's the challenge - to create an AI experience that minimizes errors and "dirty data" requires significant effort, including a proper data governance plan and teams implementing the right algorithms and learning models to augment how employees work today.

The difficulty isn't primarily technological; it's taking the time to assess what you have, what you need, what to retain, and what to discard. This is where a strong enterprise archiving platform helps, enabling organizations to manage legacy information properly going forward.

It's also about having the right content and data management experience - the right platforms, policies, processes, and workflows. If these aren't in place, organizations need to address them through adopting complementary solutions or making wholesale changes to their approach.

It's a significant challenge that requires time, thought, and ultimately a forward-looking plan to fully leverage AI in today's work environment.