Cloud computing and AI have been fixtures of government technology conversations for more than a decade. The promise has always been clear: more resilient services, faster decision-making, improved citizen experiences and a more agile public sector.
But for many agencies, the reality is more complex. Moving from ambition to delivery means navigating legacy systems, strict security requirements, workforce capability gaps and the persistent challenge of scaling beyond pilots.
In the latest episode of Delivery: A GovTech Podcast, InnovationAus.com publisher Corrie McLeod sits down with Leidos Australia’s Kate Parr to unpack what it actually takes to modernise government systems at scale — and why success depends less on technology itself, and more on how it is applied within the unique operating environment of government.
Ms Parr, who leads Leidos Australia’s Civil Digital Modernisation area, brings more than two decades of experience delivering ICT programs across federal agencies, including the Australian Taxation Office, Home Affairs and Geoscience Australia.
She agrees that while there’s a lot of talk about cloud and AI maturity, the reality is that many agencies are still grappling with legacy environments, security constraints and how to scale beyond proof of concept.
One of the defining differences between public and private sector transformation is the environment in which change must occur. Government agencies operate within fixed business rhythms — from tax time to border operations — where disruption is not an option. That means transformation must be carefully sequenced around operational realities, often extending timelines and constraining how change can be delivered.
“You can’t rollout major changes in your transformation program during critical periods like tax time,” Ms Parr explains. “You have to plan around those rhythms, which means change can take longer to execute.”
If there is a common thread among agencies making meaningful progress, it is a willingness to start with the fundamentals. Rather than pursuing large-scale, ‘big bang’ transformations, Ms Parr points to a growing shift toward smaller, modular approaches underpinned by strong data foundations and clear security frameworks.
“Your data is the foundation,” she says. “Then you need to understand your security framework, your platform, and how you’re going to manage and protect that environment before you start experimenting.”
This reflects a broader evolution in how technology is being deployed. Traditional monolithic systems are giving way to smaller, more agile components and enabling agencies to test, iterate and scale in controlled ways.
In government, security is not a layer added later, it is a starting point. With increasing focus on data sovereignty, IRAP compliance and classified environments, agencies must design systems that meet strict regulatory and community expectations from day one.
“Before you start moving, you have to know what your security requirements are,” Ms Parr says. “You have to understand your risk appetite and how you manage citizen data.”
This is particularly critical in the context of AI, where the promise of rapid innovation must be balanced against the need for trust, control and accountability.
While workforce capability is often cited as a barrier, Ms Parr argues the issue is less about skills and more about mindset. The shift toward AI, automation and data-driven decision-making requires organisations to rethink how work is done, not simply adopt new tools.
“Everyone has the skills to work with data,” she says. “What’s required is a cultural shift in how people think about and use that information.”
In a landscape saturated with new technologies and vendor promises, Ms Parr also cautions against adopting solutions without a clear problem to solve.
“Don’t take technology and go looking for a problem,” she says. “Make sure there’s a business need and an appetite to use it first.”
As governments continue to invest in cloud and AI, the gap between strategy and execution remains a central challenge. Closing that gap requires more than technical capability. It demands a deep understanding of government environments, disciplined planning, and a willingness to build from the ground up.
The promise of cloud and AI remains compelling, but as Ms Parr makes clear, real progress comes from getting the fundamentals right.
This episode forms part of InnovationAus.com’s Delivery: A GovTech Podcast series. This content is produced in partnership with Leidos.
Do you know more? Contact James Riley via Email.