Public sector faces IT skills shortage amid rising cyber threats

Australian government agencies are facing increasing challenges in maintaining operational stability, as cybersecurity threats become more sophisticated and skilled IT personnel remain in short supply. A report examining public sector preparedness indicates that cyber resilience and workforce capability are now critical areas of focus as agencies modernise essential digital services.

Staffing challenges

The report reveals that 74 per cent of government agencies struggle to recruit IT staff. This places the public sector ahead of other industries in experiencing technology workforce shortages. Despite significant investments in cybersecurity and artificial intelligence, many agencies report ongoing gaps in expertise and resource availability.

An increasing reliance on technology to deliver government services has not been matched by the current rate of workforce development, according to the findings. Agencies are attempting to balance the need for rapid digital transformation with ensuring adequate staffing and talent development to support secure and resilient operations.

Service continuity

Managing the risks associated with system downtime remains a challenge. The report states that 85 per cent of agencies can only tolerate less than 12 hours of restricted access to critical data. However, 23 per cent acknowledge that their recovery from a major incident could take more than a day. This gap between organisational expectations and actual recovery capabilities is creating further pressure on public sector IT teams.

"Public sector leaders face growing pressure to modernise without compromising service continuity. True resilience now depends on people, skills, and systems working together to deliver secure, efficient services that Australians can trust," said Nathan Lowe, Managing Director, ASI Solutions

To address these pressures, agencies are increasingly adopting hybrid IT environments and co-managed service models. These approaches are seen as effective ways to build recovery readiness and strengthen long-term capability across different government levels.

Cybersecurity landscape

Cybersecurity continues to be the top priority for government agencies across local, state, and federal departments. The report notes that phishing, social engineering, and account takeover have emerged as the most pressing and common threats. While half of government organisations have increased their cybersecurity budgets over the past year, 40 per cent of respondents state they are not fully prepared for the current threat environment.

The research points out that technology investment alone is insufficient to manage the rising human-centric risks. Agencies are being urged to focus equally on fostering a culture of security, conducting regular staff training, and rehearsing incident response protocols.

"Government leaders are taking a pragmatic approach to transformation, balancing innovation with the responsibility to deliver secure, reliable services. Many are adopting hybrid IT and co-managed service models to strengthen recovery readiness and build long-term capability. We're working closely with government customers to modernise critical systems, enhance cybersecurity operations, and create more resilient digital environments that enable them to achieve their strategic objectives," said Lowe

AI adoption

The adoption of artificial intelligence is accelerating within the public sector, with 54 per cent of agencies expecting AI technologies to significantly reshape their IT and data strategies in the coming two years. However, the report highlights that few agencies have established comprehensive governance frameworks to guide responsible AI use. This lack of preparedness could compound existing cybersecurity and operational challenges as AI becomes more integrated into digital services.

Incremental delivery models are gaining popularity among government organisations. Compared to traditional large-scale projects, these models enable agencies to deliver measurable progress more quickly and to better manage evolving priorities. This approach is seen as providing greater flexibility and ensuring essential services remain uninterrupted during transformation initiatives.

Human factor

"The top threats facing government are increasingly human-centric, phishing, social engineering, and account takeover remain the most common risks, with AI-augmented attacks adding a new layer of complexity. Technology alone can't solve these challenges. I challenge agencies to invest just as much in culture, training, and incident rehearsal as they do in tools and systems. Building genuine resilience means preparing people as well as platforms to anticipate, respond, and recover when it matters most," said Trevor Clarke, Chief Analyst, Tech Research Asia