Public sector IT teams are under increasing pressure to deliver reliable, efficient services while managing complex infrastructures, fragmented systems, and stretched resources. Failures in critical systems do not go unnoticed; they often make headlines. Yet, many organisations still struggle with limited visibility into their digital environments, making it difficult to detect and resolve issues before they escalate.
Speaking at a Business Reporter dinner briefing at the House of Lords, Duncan Gillingwater, Principal Strategist at Dynatrace, explained how end-to-end observability is transforming IT operations. Observability offers real-time insights into system performance and automates incident detection and recovery. This helps organisations detect and resolve issues proactively, optimise resources, and manage risk more effectively.
A Risk-Averse IT Strategy
Attendees agreed that risk aversion is deeply embedded in public sector IT, shaped by the high-stakes nature of government services. Many projects support essential functions such as healthcare, social services, and Critical National Infrastructure (CNI). If these fail, the consequences can be catastrophic.
One participant noted that public sector projects often originate from policy objectives, rather than targeting a particular IT need, which can create a disconnect between strategy and delivery.Decision-making, too, is often fragmented, with projects governed by committees where no single person takes full ownership of success or failure. These dynamics, attendees said, create a culture where caution overrides action, leading to projects that move slowly, or not at all.
Yet not all decisions should be treated as high-risk. John Davies, Managing Director UK, Germany and International Organisations, Worldwide Public Sector at Amazon Web Services (AWS), introduced the concept of “one-way” and “two-way” door decisions - a framework used at Amazon. One-way doors are irreversible decisions requiring careful deliberation, while two-way doors allow for quick reversals. Public sector leaders, he suggested, don’t need to treat every decision as a one-way door, and could move more quickly by identifying which changes are easily reversed.
Observability could help shift this mindset, allowing leaders to make informed decisions with greater confidence. By providing real-time data on system performance, observability removes guesswork from risk management, ensuring issues can be detected and addressed before they become critical failures.
Complex Projects, Stretched Resources
Alongside risk aversion, resource constraints and organisational silos remain significant challenges. Government departments, attendees noted, seldom communicate with each other, leading to duplication of effort and inefficiencies. It is not uncommon for different agencies to unknowingly develop or procure similar technologies independently.
This lack of coordination is particularly problematic in complex service delivery environments. In healthcare, for example, multiple systems, such as GP surgeries, hospitals, pharmacies, and administrative functions, must integrate seamlessly. This level of coordination is already difficult, but it becomes even harder when resources are stretched.
One attendee highlighted a key difference between public and private sector project execution. When private companies commit to a major IT project, they allocate dedicated resources to ensure success. In contrast, public sector projects are often expected to be delivered within existing constraints, with teams balancing transformation efforts alongside day-to-day responsibilities. As one participant put it, “you can’t concentrate on planning a new kitchen if your bathroom is on fire.”
Observability, attendees suggested, could help mitigate these constraints by automating routine monitoring and error detection. Reducing manual workloads frees IT teams to focus on higher-value tasks, ensuring resources are used more effectively.
Finding a Way Forward
Despite these challenges, attendees agreed change is possible with the right leadership. In the public sector, ministerial and executive sponsorship is crucial. When a senior leader champions an initiative, progress can happen rapidly. Given how public sector IT supports critical services, and operates in a resource constrained environment, there is often pressure to deliver quick wins, and it can be difficult to sustain momentum for long-term transformation projects.
One participant noted that data can help overcome some of these obstacles by providing objective evidence to support decision-making. A well-structured narrative, backed by data, can unite stakeholders around a common goal and secure buy-in across different levels of government.
Attendees acknowledged that some projects are more politically viable than others. Initiatives that are popular with the public can face fewer barriers than projects aimed at cutting costs or consolidating services. However, the consensus was that digital transformation is crucial, and leaders must find ways to drive change despite constraints.
Creating Space for Experimentation
While risk aversion remains a challenge, some attendees argued that the public sector should embrace controlled experimentation. The government is unlikely to adopt Silicon Valley’s “move fast and break things” philosophy, but there is growing interest in creating sandbox areas where new technologies can be trialled safely.
Hicham Mabchour, UKI Country Leader and Regional Vice President at Dynatrace, described observability as an always-on MRI scan for IT systems, continuously diagnosing performance issues and automating resolutions. This capability, he said, ensures that even as organisations innovate, they can maintain control and visibility over their systems.
As the discussion ended, attendees considered the opportunities presented by automation and AI-driven observability. Despite ongoing pressure to cut costs and reduce headcount, the technology presents a chance to free up skilled employees for higher-value work. Mr Davies posed a question: “If you could repurpose 10 percent of your full-time employees’ time, what would you have them do?”.
The question highlighted both the constraints and opportunities facing public sector IT. Challenges remain but observability offers a path forward where data-driven insights enable faster, smarter decisions, and IT teams can focus on delivering lasting improvements.
To learn more, please visit: www.dynatrace.com & www.aws.com
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