GovTech Is Broken Here is How We Fix It.
The restructuring of the U.S. Digital Service isn’t just a bureaucratic reshuffle. It’s a red flag. It underscores an uncomfortable truth: despite decades of effort, government modernization remains fragile, reactive, and largely ineffective at scale. These recent events should not just spark concern—they should set off alarms across the $200+ billion GovTech industry.
At Viderity, we view this moment not as a crisis, but as a turning point.
The $200 Billion Disconnect
Each year, U.S. federal, state, and local governments spend more than $200 billion on technology. And yet the return on that investment is often underwhelming: outdated solutions, rigid systems, and vendor lock-in that traps agencies in expensive cycles of underperformance. Why?
It’s tempting to blame procurement complexity or the public sector talent gap. But after more than a decade of reform—from agile teams to boutique vendors to internal capacity building—the structural problems remain.
Digital service teams, civic tech initiatives, and internal innovation groups have demonstrated what can be done. But they haven’t changed what usually gets done. That’s a market problem.
Why Government Digital Efforts Fall Short
Here’s what we’ve learned:
- Digital service teams: prove the value of agile and user-centered approaches, but often lack authority and durability.
- Civic tech orgs: bring community energy but rely on short-term grants and lack enterprise-scale reach.
- Boutique vendors: (ourselves included) offer quality and integrity but face barriers in a procurement landscape dominated by incumbents.
- Internal capacity building: is essential, but public sector hiring systems and compensation ceilings prevent sustained technical depth.
These aren’t failures of intention—they’re limitations of structure, scale, and incentives.
It’s Time to Reshape the Market
Instead of ignoring the market or ceding it to the status quo, we need to reshape it. At Viderity, we are leveraging our position as a HUBZone-certified, woman-owned business to lead with purpose, scale with precision, and deliver value with integrity. That requires:
- Policy Infrastructure
Reusable templates, procurement language, standards, data-sharing agreements, and playbooks must become the default.
Practical ideas:- Establish a central library of contract-ready templates for CMS implementations, data-sharing agreements, and open standards.
- Promote state and local adoption of cloud procurement language modeled on successful federal templates.
Viderity’s role: We guide agencies through these frameworks with pre-approved GSA MAS SINs and proven contract language for rapid adoption.
- Government Capacity
Digital transformation isn’t possible without internal teams who can define requirements, evaluate vendors, and manage systems.
Practical ideas:- Stand up digital fellowship programs in partnership with mission-driven vendors.
- Fund internal training hubs on AI governance, predictive analytics, and cybersecurity risk modeling.
Viderity’s role: Through our training, CMS support, and service desk operations, we help governments build technical fluency and maintain continuity.
- Market Reform
We need to change who gets to build public technology. That means rewarding quality, outcomes, and transparency—not just checkbox compliance.
Practical ideas:- Create an impact-based vendor scorecard.
- Encourage modular contracting structures to give newer vendors a chance to prove outcomes without bidding on full-stack projects.
Viderity’s role: We support modular architecture, human-centered design, and measurable KPIs in every implementation—from data dashboards to strategic communications platforms.
The Role of Ecosystem Support
We need connective tissue. Think tanks, trade groups, nonprofits, media outlets, and fellowship programs can:
- Train the next generation of technologists
- Maintain institutional knowledge
- Advocate for smarter policy
- Demonstrate scalable models/li>
Viderity’s engagement: We participate in organizations like the AFCEA Bethesda Health IT Summit, Women Impacting Public Policy, and the HUBZone Council, creating stronger public-private knowledge networks.
Funding This Framework
Transformation won’t happen on good intentions alone. It requires:
- Strategic philanthropy to de-risk ideas
- Government investment to provide scale and durability
- Private capital to fuel innovation and build resilient infrastructure
Call to action: States should consider pooled modernization funds. Agencies should carve out 5% of IT budgets for innovation pilots. Impact investors should fund GovTech with long-term ROI models.
What Comes Next
The GovTech reckoning is real. But it’s not a reason to give up. It’s a chance to get serious.
At Viderity, we’re working with partners to:
- Modernize legacy systems through cloud and mobile platforms
- Implement AI-powered data analytics and content moderation
- Embed cybersecurity and access controls in enterprise workflows
- Build intuitive UX/CX strategies using Figma, usability testing, and WCAG standards
- Drive program success through strategic outreach, event planning, and communications
We’re not just solving technical problems. We’re challenging structural ones. Let’s build a GovTech future that scales, sustains, and serves.
Are you ready to shape what comes next? Let’s talk.
#GovTech #DigitalTransformation #MarketReform #GovernmentInnovation #PolicyInfrastructure #PublicSectorModernization #Viderity
