Accenture and Capgemini have emerged as the top-performing service providers in Australia’s public sector technology market, earning leadership positions across all four categories of the 2025 ISG Provider Lens Public Sector Services and Solutions report.
The annual study by Information Services Group evaluates 34 providers supporting government digital transformation. The report highlights strong modernization momentum as agencies replace legacy systems with tools designed around citizen experience and operational efficiency.
ISG identified AC3, IBM and Infosys as Leaders in three quadrants each, while Probe Group ranked as a Leader in two. Other recognized providers include Concentrix, Deloitte, Fujitsu, KPMG, NRI, Optus, Serco, TCS, Telstra, Unisys, Wipro, Data#3 and Mastek. Infosys was also named a Rising Star for its potential in one quadrant.
Rebuilding Tech Foundations
“Public sector modernization in Australia is being driven by citizens’ expectations for secure and seamless services,” said Michael Gale, partner and regional leader at ISG Asia Pacific. “By rebuilding new technology foundations, agencies are creating systems that enable lasting improvements in service quality.”
The report found that agencies are advancing digital-first engagement strategies to meet growing citizen demand for simple, reliable and personalized services. Workforce transformation is also reshaping the sector, as younger employees seek digital fluency and flexible work arrangements.
Role of AI and Automation
Harish B, ISG principal analyst and report co-author, noted that artificial intelligence and automation will play an increasing role in government service delivery. “Service providers will play a crucial role in this evolution by helping agencies overcome structural inertia and skills shortages,” he said.
ISG said agencies are aligning their modernization programs with Australia’s 2030 Data and Digital Government Strategy, which aims to deliver secure, connected and efficient citizen services.
To support these modernization goals, the Digital Transformation Agency continues to play a key role in helping government agencies access and integrate emerging technologies. Earlier this year, the DTA partnered with Amazon Web Services Australia to accelerate the government’s adoption of cloud computing services, further enhancing the delivery and reliability of public services.