Report 05 Jan 2026

Public Sector - InSight Analysis - Austria

The public sector in Austria is entering a decisive phase of digital modernization. As economic recovery remains modest and administrative demands grow, Austria is accelerating investment in digital sovereignty, cloud transformation, and cybersecurity to strengthen government efficiency and resilience. This report outlines the key developments shaping the public sector in Austria in 2025 and the strategic priorities driving the SITS market.

With an expected annual SITS market growth of around 4.4%, the public sector in Austria shows strong momentum in SaaS adoption, secure cloud services, and AI-enabled modernization. Key growth drivers include:

Cybersecurity & NIS2 compliance
• Expansion of e-government and mobile-first services
• Investments in AI, analytics, and national data governance
• Upgrading healthcare IT via ELGA expansion, telemedicine, and HIS modernization
• Rising defense budgets supporting digital command platforms and cyber capabilities

The Digital Austria Act 2.0 and the national Digital Skills Initiative are laying the foundations for interoperable, citizen-centric services. Healthcare modernization is advancing through ELGA’s expanded functionalities and upcoming HIS transitions. At the same time, cloud sovereignty is gaining in importance, illustrated by ministries deploying secure Nextcloud environments operated domestically.

Market leaders include Microsoft, SAP, and CGM in software, with BRZ remaining a central captive provider. In services, Accenture, Cancom, IBM, and local specialists like NTS shape a diverse competitive environment.

Recommended advisory: PAC Leadership Session – Smart Cities and IoT