Challenges of digital transformation and proven solutions

Digital transformation is a pressing issue for all organisations, but local government faces its own distinctive hurdles. Councils must deliver faster, more seamless services, all while managing tight budgets and grappling with legacy technology. Yet, driving transformation is complex: research indicates that three-quarters of digital transformation projects fail to yield returns exceeding their initial investment, with 70% of failures attributed to poor adoption and resistance to change. For local authorities, this highlights the importance of investing in digital solutions tailored to local government needs – striking a balance between citizen expectations and operational realities, and ultimately achieving measurable results.

What is Digital transformation in general?

Digital transformation is more than just turning paper documents into digital files. It’s a fundamental shift in how organisations operate, deliver services, and connect with people. Achieving this requires a change in culture, strong leadership, and a focus on designing services around citizens’ needs. By rethinking processes and adopting new technologies, organisations can minimise inefficiencies, enhance service quality, and drive ongoing innovation.

What is digital transformation in local government?

For councils, digital transformation involves rethinking how essential services like housing, waste, planning, licensing, and benefits are delivered. Unlike the private sector, the priorities are inclusivity, regulatory compliance, and high-quality service rather than profit. Practical examples include UK councils offering online planning applications, launching self-service portals for housing repairs, and implementing smart city technologies such as sensors to better manage traffic and waste.

Key aspects of digital transformation in local government

Here are the foundational elements of digital transformation within local government:

• Moving from analogue to digital – such as replacing paper applications with online forms and e-signatures
• Redesigning workflows – transforming processes instead of simply digitising existing paper methods
• Enhancing the citizen experience – developing intuitive, mobile-first platforms that shorten wait times
• Boosting operational efficiency – leveraging automation tools such as AI and RPA to handle repetitive tasks
• Making data-driven decisions – utilising analytics for improved planning and forecasting
• Promoting transparency and accountability – deploying dashboards and open data portals to strengthen public trust

7 challenges of digital transformation in local government

Compared to the private sector, local councils face greater challenges with digitalisation because of limited budgets, outdated IT systems, and complex governance structures. Below, we outline seven of the most significant barriers to government digital transformation, and share how forward-thinking councils are overcoming them using Netcall’s Liberty platform.

1. Legacy systems and infrastructure
   Many councils find themselves hampered by outdated IT systems that make it difficult to link citizen data across different departments. Liberty offers a way to modernise operations by connecting and streamlining processes without the expense of replacing entire systems, enabling councils to build on what they already have.
2. Funding and resources
   Major digital investments often exceed the limits of annual budgets, which can lead to projects being underfunded or put on hold. Liberty empowers councils to begin with manageable initiatives, achieve early successes, and gradually accelerate progress – reinvesting the savings generated to fund larger transformation objectives.
3. Cybersecurity risks
   Councils are increasingly targeted by ransomware attacks, putting citizens’ sensitive data at risk. Netcall’s platform-based approach supports compliance and resilience, enabling councils to safeguard citizen information while fulfilling governance obligations.
4. Resistance to change
   Staff often worry about potential job losses, and leadership can be hesitant to take risks. Without genuine buy-in, even the strongest initiatives can falter. By enabling non-technical employees to participate in shaping and enhancing services, Liberty reframes transformation as an opportunity to simplify work – rather than something to fear.
5. Digital inclusion
   Because not every citizen has reliable internet access or feels confident using digital channels, it’s essential that services stay accessible to all. Liberty enables councils to prioritise digital-first service delivery while still offering assisted support options, ensuring no one is excluded.
6. Scalability issues
   Pilot projects may achieve local success, but often struggle to scale across multiple services. With Liberty, councils can easily reuse applications and templates, simplifying the process of expanding proven pilots into broader service areas.
7. Legal and regulatory frameworks
   Strict regulatory oversight, procurement delays, and the demands of GDPR compliance can slow down transformation efforts. Liberty’s solutions are specifically developed for local government, enabling councils to accelerate their progress while fully meeting compliance requirements.

“Digital transformation in local government works best when councils have the tools to innovate quickly and safely. Low-code solutions empower teams to respond to citizen needs without being held back by skills shortages or legacy IT.”

Mark Gannon
Director of Client Solutions, Netcall

Addressing digital transformation challenges requires a pragmatic and inclusive strategy. Councils that succeed tend to adopt an incremental approach, with robust change management. Netcall's Liberty can help.